The three primary government deductions that must be taken include the Canada Pension Plan contributions, the income tax, and the EI premiums. Your company might also have other types of employee deductions to collect for retirement plans, life insurance, extended health benefits, and others.
To determine the amount of income tax that you should deduct from an employee’s pay, you will need to use British Columbia’s table or use the payroll deductions calculator from the CRA. The calculator will also calculate the other types of payroll deductions that must be made in addition to the income tax.
Canada Pension Plan contributions must be deducted for each employee who is younger than 70 but older than 18 who is not disabled and who does not receive a CPP pension. You can find more information about CPP contributions on the CRA’s pension plan page.