On your pay, you will see there is a difference between what you make (your gross
earnings) and what your “take – home pay” (your net pay) is.
Employees who are not residents of Canada, but are in regular and continuous employment
in Canada, are subject to the same tax deductions as Canadian residents.
Employers are required to make deductions from pays in a specific sequence. The first
deductions from a pay are to withhold your Canada Pension Plan contributions, Employment
Insurance premiums, and federal and provincial income tax. Those are the basic statutory
deductions for any employee. Following those deductions are garnishments and any mandatory
or voluntary employment related deductions.
For Income Tax, Canada Pension Plan (CPP), Employment Insurance (EI) and other legislative
rates, please visit the CRA website.
Employment Insurance (EI)
Employment Insurance provides financial assistance when you’re unemployed and looking
for work, and to Canadians who are sick, pregnant, caring for a newborn or adopted
child, or caring for a relative who is critically ill.
Both employees and employers pay EI premiums. Employers must pay employment insurance
(EI) premiums for each dollar of insurance earnings up to the yearly maximum. As an
employer, the University pays a certain amount of EI premiums based on the EI deductions
from an employee’s remuneration.
There is no age limit for deducting EI premiums.
Canada Pension Plan (CPP)
Canada Pension Plan contributions are deducted from your employment income if you:
- are 18 years or older, but younger than 70; and
- are in pensionable employment during the year
Both employees and employers contribute to CPP. Your portion is deducted directly
from your pay cheque, and your employer matches your contributions and these are remitted
to the Canada Revenue Agency.
The Canada Pension Plan contribution amount is calculated based on your gross pensionable
earnings up to a ceiling for the given year. The ceiling is called your maximum pensionable
earnings (YMPE). In addition, you’re allowed to earn a certain amount of money before
CPP must be deducted. This amount is called the year’s basic exemption (YBE).
If you have reached the age of 65 and are in receipt of a CPP pension, and you do
not wish to make CPP contributions, you must file a CPT30 with the CRA in order to
stop the contribution, and provide the payroll office with a copy of this filing.
Income tax will be deducted from your employment income based on the total claim amounts
stated on the Federal and Provincial TD1 Forms – Personal Tax Credit Return
The Personal Tax Credit TD1 Forms
The federal and provincial Personal Tax Credits Return TD1 forms must be completed
by new employees and submitted to payroll. The information on these forms is used
by payroll to determine the amount of federal and provincial income tax to deduct
from an employee’s income.
You do not have to complete a new TD1 every year unless you have changes to claim
extra tax credits, or additional taxes to be taken off on each pay.
T4’s & T4A’s
T4 and T4A slips for the 2019 tax year will be available through OWL for all active
employees by the end of February.
Paper Tax Slips for Active Employees
Active employees who have requested to receive paper delivery of their T4 or T4A slip
prior to January 31, 2020 will receive 2019 tax slips in the mail.
Any requests submitted after January 31, 2020 will affect T4 distribution starting
Inactive employees will receive paper tax slips in the mail. These documents will
be sent to the most recently recorded mailing address in payroll. 2019 tax slips will
be mailed from the University by the end of February.
Inactive employees who have moved or changed addresses in the past year must notify
payroll at email@example.com to have your mailing information updated for future
pay statements and tax slips.
Inactive employees who do not receive a tax slip in the mail may contact firstname.lastname@example.org
to request a paper copy after March 15, 2020.
Please include the following information in your request:
- Full name
- Date of birth (YYYY-MM-DD)
- Phone Number
- Email—please submit your request in writing and provide a valid email address
- Standard mail—please provide a valid mailing address
- Pick-up in person—please visit the payroll office at MSJ Rm 152 after March 15, 2020,
between Monday to Friday, 10:00am to 4:00pm. A valid piece of photo ID may be required.
T2200 – Employment expense
Canada Revenue Agency form T2200 – Process outline for completion of the Declaration
of Conditions of Employment form.
An employee’s eligibility to claim expenses will be reviewed on an individual basis.
When an employer is asked to sign a completed Form T2200, they are certifying that
the expenses paid by the employee are required within the employee’s terms and conditions
of employment. The specific terms should appear in the employee’s employment contract
or negotiated contract, and not all expenses that are reimbursed by Brescia may be
eligible expenses under CRA guidelines for this deduction.
The Form T2200 can only be signed when the conditions for each type of expenditure
- Employees will provide a brief written statement outlining the type of expenses incurred
and the basis for requesting the form T2200. This statement will be submitted to the
- The payroll officer will review the list of expenses against those eligible for reimbursement
under the CRA guidelines and against PER/CWRTER spending.
- The Form T2200 must be signed by the Vice-Principal, Finance and Administration.
- The payroll officer will inform the employee once the form is authorized and can be
picked up. Please allow 10 business days for completion of forms.
For complete details on CRA’s current allowable employment expenses, please see Guide T4044 – Employment Expenses available.
A signed T2200 does not provide an employee with any assurance that expenses incurred
are deductible. The eligibility to deduct employment expenses is governed by the Canada
Revenue Agency. Employees wishing to deduct employment expenses are advised to review
the Canada Revenue Agency’s publications and/or seek advice from their personal tax