Employer Responsibilities

Payroll Deductions

Federal law requires that, as an employer, you must collect Unemployment Insurance premiums, Canada Pension Plan contributions, and personal income tax on behalf of the government. The costs of Unemployment Insurance premiums and Canada Pension Plan contributions are shared by the employer and the employee. When hiring personnel, you must contact Revenue Canada to obtain your employer's account number and forms.

Revenue Canada Taxation provides free, easy-to-follow instructions regarding remittance procedures and amounts to be deducted from employees' wages. All new employers are encouraged to obtain this information package.

If you hire people on contract, you are not responsible for collecting payroll deductions nor for paying the employer portion. Revenue Canada has strict guidelines for who does and does not qualify as an employee. Self-employed people who want to participate in the Canada Pension Plan are responsible for both employer and employee contributions, and they must remit taxes in quarterly installments.

Contact Revenue Canada and the Unemployment Insurance Commission for more information and assistance. See Appendix A for contact information.

Health Care Insurance Premiums

All employers with five or more employees, including owners and partners, are required to form an employee group for payroll deductions of medicare premiums. For further information, contact Alberta Health and Wellness. See Appendix A for contact information.