Paying employees their wages on payday involves much more than depositing a sum of money into a bank account or handing out a pay cheque at the end of the month. Payroll responsibilities also require employers to withhold certain taxes from the money they pay their employees and remit them to the Canada Revenue Agency (CRA).
But this can get quite complicated. The differences between federal and provincial remittances and employer and employee obligations regarding payroll taxes can be confusing sometimes. The first step to understanding payroll taxes is understanding what exactly the CRA expects of small business owners.