Payroll Source Deductions

Preparing the Payroll Source Deduction Return

Employers are required to deduct Canada Pension Plan (CPP), Employment Insurance (EI), and Income Tax from employee pay cheques. The employee amounts are then remitted to the government along with the employer portion. The return and payment must be received before the 15th of the next month. Most payroll services will remit the required amount on your behalf every month.

The following information is required:

Gross payroll for the month
Number of employees at the end of the month
Year and month of the deductions
Amount paid (calculated as the sum of the following):
Employee CPP
Employee EI
Employee Income Tax
Employer CPP (equal to the employee CPP)
Employer EI (1.4 times the employee EI amount)

Mail Payroll Remittance Form (PDF) to:
CRA Technology Centre
875 Heron Rd
Ottawa ON
K1A 1B1

Payroll information is summarized annually on a T4 form that must be submitted by February 28th.