Paying employees accurately and on time is one of the great responsibilities of an employer. A key aspect in the payroll process is making deductions on amounts paid to your employee(s). These deductions include CPP contributions, EI premiums and income tax. Your employer portion of the CPP and EI also must be remitted to the Canada Revenue Agency (CRA).

If you do not fulfill your obligations or comply with the CRA’s payroll requirements, you may be assessed and as a result, be fined a penalty, incur interest, or suffer other consequences. You could also be prosecuted if you do not comply with the deducting, remitting, and reporting requirements. Fines range from $1,000 to $25,000, or you could be fined and imprisoned for a term of up to 12 months.