I'm thrilled to have you here raising questions about employee taxes paid by the employer, James. I'm here to provide you with the answer and further explanation.
Canadian payroll taxes vary across provinces and may include CPP (Canada Pension Plan). Both employers and employees contribute. The rates are updated annually.
Then, there is the EI ( Employment Insurance). Contributions are made by employees and matched by employers at a rate of 1.4 times the employee rate.
Lastly, the Provincial Payroll Taxes. Some places impose additional taxes like health premiums or workers' compensation levies.
For example:
- Ontario: Employer Heath Tax (EHT)
- Quebec: Contribution to the Health Services Fund
Moreover, if we discuss the bonus section in QuickBooks Online (QBO) by the definition itself, it is the extra credit you give to your employees to thank them or the team for reaching a significant goal and to improve morale, motivation, and production.
This means it doesn't involve taxes paid by the employer. Check out this article for more information: Understand supported pay types and deductions in QuickBooks Online Payroll.
Additionally, consider visiting this article to guide you in entering these payroll tax items in QBO: Set up and add deductions and contributions to an employee's payroll in QuickBooks Online Payroll.
For additional inquiries with regard to Canada taxes for employers, let me know, James by leaving a comment below. I'll ensure to promptly answer them. Take care and have a great day!
