Payroll step 2

CPP, EI, income tax and remittances

Understand common Canadian household payroll deductions and employer contributions.

Illustrative dataUpdated September 1, 2026

Short answer

An employer withholds the employee portions required for the pay period, adds applicable employer CPP and EI amounts, and remits the total to CRA by the assigned deadline.

Calculate from current official tables

Rates, exemptions, maximums and remittance rules change. Use CRA's current Payroll Deductions Online Calculator or approved payroll software rather than copying an old percentage.

Keep an audit trail

Retain hours, gross pay, taxable benefits, deductions, net pay, remittance confirmations and pay statements. Province-specific vacation and overtime amounts belong in the same records.

Prepare year-end records

Common questions

What to know

Are these payroll step 2 figures verified?

No. Launch salary values are clearly marked illustrative until independent source verification is complete.

Can this replace professional advice?

No. It is general information; employment, tax and legal requirements depend on the province and facts.