Online Signature Legality for Payroll Deduction Authorization in Canada

How to eSign a document: online signature legality for Payroll Deduction Authorization in Canada

[Applause] hi I'm Lisa from GTA accounting professional corporation today we will discuss guide to Canadian payroll deductions for employers as your business expands you will find the need to hire people to work for you being an employer comes with numerous responsibilities an important one is making sure your employees are paid properly the CRA has set up stringent requirements for employers to remit the right payable deductions if you make any mistakes when doing payroll your business might face hefty penalties and fines so here's a simple guide to help you understand payroll deductions and what it means for you as an employer simple steps to running payroll the first step is to open a payroll account with a CRA which is what you'll be operating when you pay your employees secondly come up with a system to collect all the information from your employees as part of the hiring process this includes a Social Insurance number or si M on each pay period you will be required to make an appropriate deduction from each of your employees pay the payroll deductions will then be remitted to the CRA as required once all this is done the last step is to ensure your report each income and deductions when filing your returns before the deadline was to check when collecting information from employees you will need to collect the SI m of each employee each document needs to be examined and recorded exactly as it appears when looking at the SI n make sure you take note of those Social Insurance numbers that start with a nine this is an indication that the person is not a Canadian citizen or permanent resident so may not be able to work for you unless he or she is authorized by the IRC see adding taxable benefits taxable benefits include things like a company car low-interest loan or accommodation that you have provided to your employee this type of benefit should be added to the employees income each pay period taxable benefits are added first before payroll deductions because the total income you get will determine how much is deducted in form of taxes some taxable benefits may be subject to GST HST Canadian payroll deductions once you add all the taxable benefits to the employees income the next step is to make the payroll deduction start with the government program deductions which are at the income tax Canada Pension Plan contributions and employment insurance premiums some organizations have specific deductions that apply to them for instance you may have life insurance or retirement plans that should also be considered as part of the payroll deductions remitting employee payroll deductions the CRA will send you a remittance form whenever the payroll deduction remittance is due however this is not the case for new businesses or employers for a new employer send a check or money order with a letter that states that you are a new remit err and provide other information such as the period your remittance covers your business number address and telephone number keep in mind that hiring a tax accountant to prepare your tax bill will save you money in the long run so it's a worthwhile business expense thank you for watching and if you would like to learn more our CPA accountants would be happy to help [Music]