Glossary
Source Deductions
Source deductions are the amounts an employer withholds from each pay cheque — income tax, CPP contributions and EI premiums — before the employee is paid. The employer holds this money in trust and must remit it to the Canada Revenue Agency by its assigned due date. Late or missed remittances draw penalties and interest, and unremitted trust amounts can become a personal liability for directors. Getting the calculation and the timing right is the core of running compliant payroll, which we cover in our Alberta payroll guide.
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