Hear the company bookkeeper’s lament, “Oh Stress, thy name is Payroll!” If you’re the bookkeeper (or the business owner who is stuck doing payroll), you may have noticed that employees get a bit testy if
- Their pay cheques don’t arrive on time
- Mistakes are made on their cheques
- Their T-4’s are late or incorrect
The government is not too fond, either, of late-filed or incorrect remittances.
You have until December 31 to insure that your T4 remittances balance. Even if you have a slick payroll system, mistakes can be made, especially with deductions for EI and CPP.
Below are the 2014 rates for CPP and EI deductions:
CPP Employee and Employer: 4.95% with a maximum deduction of $2425.50 for the employee/employer
EI Maximum deduction for the employee: $913.68 at 1.88%
For the employer: $1279.15 at 1.4%
- Whenever an employee resigns, complete that T4 slip right away. That will catch any underpayments or deduction errors.
- November is the month to make any corrections and submit the proper deductions to Revenue Canada. (Don’t leave it till December!) Make sure to balance your PD7A (your green sheet from Revenue Canada) with your records.
- Advise new employees that even if they maxed out contributions at their previous employer, they start from zero with you. Revenue Canada will refund any over payments of EI & CPP when employees file their income tax forms.
A Friendly Reminder:
- Payroll deductions for small employers must be submitted by the 15th of the month.
- For Threshold 1 remitters, submit at the beginning of the month and also by the 25th.
If you have other Payroll issues plaguing you, give us a call. We’re here to help!