Overview About Remuneration Deductions


Payroll deductions are the part that remains to salary accruals . It includes payments to Social Security and Income Tax for Individuals (Personal Income Tax) received by the Tax Agency in advance. This is because the company you work for acts as a collection agent.

"The deductions of a payroll are the part that remains to the salary accruals"

Remuneration of the employee's work

The salary must be paid to an employee on the regular pay day set by his employer.

The employer must pay the employee any vacation pay owed to him at the time he takes his vacation. If his employment terminates and the employer owes him vacation pay, the employer must pay it to him within thirty days of the date of termination of employment.


In some cases, the employer may deduct payroll from an employee.

The authorized deductions include:

- those provided for under federal and provincial laws, such as tax and employment insurance premiums;
- those authorized by a court order, such as the garnishment order for child support, or a collective agreement, such as union dues;
- overpayments by the employer in respect of wages;
- amounts authorized in writing by the employee, such as donations to charitable organizations, contributions to a savings plan, contributions to the health and dental insurance plan and contributions to the insurance plan. life and long-term disability insurance, the pension plan or an RRSP . To be valid, the authorization must indicate the amounts, the object and the frequency of the deductions. Thus, the employee knows exactly what he is signing and how he will be affected.

The employer can not withhold funds to recover amounts owed to it, to compensate for damage to its property or to recover the amount of fines and fines without the voluntary consent and written authorization of the employee.

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