Each year, Canadian employers collect and remit hundreds of billions of dollars in personal income taxes, Canada Pension Plan (CPP) contributions, and Employment Insurance (El) premiums in addition to other payroll taxes and levies.
Remittance and compliance activities completed by payroll are essential to the functioning of Canada’s taxation and social program systems, and play an important role for governments, organizations, and individuals. Remittances associated with payroll account for 37 per cent of total revenue to federal, provincial, and territorial governments , and are a mechanism to administer a range of programs and benefits.
The cost of compliance activities borne by Canadian employers is significant. PwC Canada estimates the cost to Canadian employers is approximately $12.5 billion per year