Payroll Deductions

I will be hiring a part time seasonal employee this year. I want to make sure I am compliant with government regulations but am finding the CRA website daunting! If I have one paid employee, twenty hours a week for 6-7 months, at minimum wage, am I obligated to withhold tax and make EI and CPP deductions? I have a handle on WSIB, so that is taken care of! Can anyone share a resource that is easy to understand?

Hi Sally,

Yes you would be obligated to withhold and remit. As it would be a small amount, you could probably get away with remitting to CRA quarterly without a penalty (there is no penalty below 500$). Here is their online calculator to figure out how much you would have to deduct each pay period. I used it all last summer for my payroll and then used a simple spreadsheet for paystubs, it worked great.

Hope that is helpful.

1 Like

Thank you! that is helpful.