What are source deductions in Ontario?

Employers are responsible for deducting the following four amounts:

• the Canada Pension Plan contribution.
• the Employment Insurance premium.
• federal income tax.
• provincial and territorial income tax.

What are CRA source deductions?

What is a source deduction? Source deductions refers to the portion of pay you’re legally required to withhold from your employees’ paychecks and remit to the Canada Revenue Agency on their behalf.

What source deductions do you have to withhold and remit?

What source deductions do you have to withhold and remit?

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

What are employer source deductions?

Employers pay source deductions to the CRA. Sources of income for employees include salary, wages, commissions, taxable benefits, and pension income. If you manage a pension plan for your employees, you also remit source deductions from your portion of the payment.

What is included in source deduction remittance?

Source deductions refer to the amounts of money you deduct and withhold from your employees when you pay them their salaries, wages or any taxable benefits they get from the company. For example, if you have an employee earning $1,000, they do not get that entire amount paid to them.

How do you calculate source deduction remittance?

As a business, your remittance schedule for payroll deductions is determined by your average monthly withholding amount (AMWA) — the sum of all the payroll deductions you paid to the CRA within a calendar year, averaged on a monthly basis.

Can you file source deductions online?

Employers can remit their payroll deductions to the Canada Revenue Agency by way of mail or online. My Business Account is the CRA portal where businesses can register and file their source deductions online. Employers must meet specific remittance deadlines each year.

How do I pay my CRA source deductions online?

How to pay your individual taxes online

1. Sign in to your financial institution’s online banking service for individuals.
2. Under “Add a payee” look for an option such as: CRA (revenue) – current-year tax return.
3. Enter your 9-digit social insurance number as your CRA account number.

How much are payroll deductions in Ontario?

For 2022, employers can use a Federal Basic Personal Amounts (BPAF) of $14,398 for all employees. The federal income tax thresholds have been indexed for 2022. The federal Canada Employment Amount has been indexed to $1,287 for 2022.

Can I pay CRA payroll deductions online?

Pay by online banking You can pay your business taxes to the CRA through your financial institution’s online banking app or website. Most financial institutions also let you set up a payment to be made on a future date.

Can I pay source deductions online?

Make a payment (remittance) If you are a threshold 2 accelerated remitter, you must remit either electronically or at a Canadian financial institution. If you do not have a remittance voucher, include the following information: your payroll program (RP) account number. that you are a new remitter, if applicable.