Calculating deductions

After you have determined that you are an employer, a trustee or a payer and have opened a payroll account, you have to calculate the CPP contributions, EI premiums, and income tax deductions based on the amounts you pay your employees.  You also have to calculate your share. Hold these amounts in trust for the Receiver General in a separate account from your operating business account.

To find out if a payment is subject to CPP contributions, EI premiums and income tax, see the topics below.

All rates for 2005

Forms and publications

• Employers' Guide - Payroll Deductions and Remittances (T4001)
• Employers' Guide - Taxable Benefits (T4130)
• Payroll Deductions Tables (T4032)
• Payroll Deductions Supplementary Tables (T4008)
• Payroll Deductions Formulas for Computer Programs (MC) (T4127)
• Tables on Diskette (TOD) (T4143)
• Form TD1, Personal Tax Credits Return
• Form TD1X, Statement of Commission Income and Expenses for Payroll Tax Deductions
• Form TD3F, Fisher's Election for Tax Deductions at Source
• Other publications for Canada Pension Plan and Employment Insurance (CPP/EI)
• Social Security Agreements and Conventions

Related topics

• Welcome to Employment Insurance online (HRSDC)