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Ontario|Employment Law
  • Employer Issues

    599 Deductions

    Under the law, an employer must make certain regular deductions from an employee's pay. The deductions that are required by law are income tax for most employees, Employment Insurance premiums, and Canada Pension Plan contributions. If an employer is going to deduct an amount not required by law, the employee must authorize the deduction in writing ahead of time.

    If an employer must pay severance pay to an employee, pursuant to judgment or settlement for wrongful dismissal, then only income tax, and in some cases, employment insurance, can be deducted.

    For additional information about deductions you can refer to other sections of Legal Line , or you can call Revenue Canada's general inquiry line which is listed in the Blue pages of your telephone book. For assistance in making deductions or submitting remittances, you should contact an accountant.

    TERMINATION OF EMPLOYMENT & EMPLOYEE RIGHTS