Who has to remit source deductions?

Payers, such as employers, administrators, trustees, and financial institutions must withhold and remit source deductions when applicable.

What source deductions do you have to withhold and remit?

The source deductions you have to withhold and remit to the CRA may be any combination of:

• Canada Pension Plan (CPP) contributions;
• employment insurance (EI) premiums; and
• federal, provincial, or territorial income tax.

For example, if you are an employer and you pay a salary to an employee, you will generally have to deduct CPP, EI and income tax. If you are a pension plan administrator, you will have to deduct income tax but not CPP or EI.

What happens if you do not remit your source deductions?

If you do not remit your source deductions and employer shares of CPP and EI as and when required, the CRA can take actions against you. For more information, go to Failure to pay amounts deemed to be held in trust.

Forms and publications

• Guide T4001, Employers’ Guide – Payroll Deductions and Remittances
• Guide T4130, Employers’ Guide – Taxable Benefits and Allowances
• Guide RC4157, Deducting Income Tax on Pension and Other Income, and Filing the T4A Slip and Summary