Failure to deduct

We can assess a penalty of 10% of the required amount of CPP, EI, and income tax you failed to deduct.

When you are subject to this penalty more than once in a calendar year, we may apply a 20% penalty to the second or later failures if they were made knowingly or under circumstances of gross negligence.

To find out how to deduct CPP, EI and income tax, see Calculating deductions.

Related topics

• Request to cancel or waive penalties and interest (Taxpayer relief provisions)