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  • Jun 3rd, 2006 7:23 pm
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[OP]
Newbie
Jul 7, 2004
95 posts

Matching CPP/EI

Hi,

I will be starting a small business with 2-3 part time employees. I know I have to deduct CCP and EI and sent CCP and EI to Revenue Canada.

My question is as an employer, do I have (optional ?) to match CCP and EI for the part time employees. That is if I deduct $10 from them do I send Revenue Canada $20?

I need to know this because my business is service based so my expenses will mostly be wages for the employees.

Any help will be greatly appreciated. :)
11 replies
Member
Apr 14, 2002
495 posts
168 upvotes
I thought all business had to.
cpp, 1 to 1
ei, 1 to 1.4
Here in BC.
Heat/Beerology: akira112
Member
May 7, 2006
351 posts
48 upvotes
Ontario
OrcKiller wrote:Hi,

I will be starting a small business with 2-3 part time employees. I know I have to deduct CCP and EI and sent CCP and EI to Revenue Canada.

My question is as an employer, do I have (optional ?) to match CCP and EI for the part time employees. That is if I deduct $10 from them do I send Revenue Canada $20?

I need to know this because my business is service based so my expenses will mostly be wages for the employees.

Any help will be greatly appreciated. :)
I'm not sure about EI, but for CPP, you have to match whatever you take from them.

I think its somewhere around 4.95% for the employee's contribution and 4.95 for the employer (its the same, I'm just not 100% on the percentages).

So you are right on taking $10 from the employee and sending in $20 (10 of employee and 10 of employer) to CCRA
Sr. Member
Aug 3, 2005
677 posts
3 upvotes
Go on Cra website and download the TOD software.Even better if you download the T4 time saver to check annually
Deal Fanatic
Feb 1, 2006
9530 posts
678 upvotes
Muskoka
Akira112 is correct, match CPP, EI has a 1.4 multiplier. There are also annual limits to each, though, and also base amounts, so it isn't as simple as you might think. The CRA has tables for deductions, and many accounting programs will do it for you as well. You may also want to look at a payroll company like Ceridian or ADP, the cost is quite reasonable, you'll know it's done right, and you'll save yourself the hassle and learning curve.
Deal Addict
User avatar
Mar 27, 2003
3344 posts
83 upvotes
I have 3-4 part time employees too...
Has anyone tried Ceridian or ADP with so few employees? What would the cost be?

I've been doing with the TOD and it seems pretty straightforward.
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Sr. Member
Aug 3, 2005
677 posts
3 upvotes
You dont need payroll companies for that.its straightforward.Once you know how to do it,it does not get more complicated
Jr. Member
Mar 5, 2006
165 posts
2 upvotes
Toronto
Blunt wrote:I have 3-4 part time employees too...
Has anyone tried Ceridian or ADP with so few employees? What would the cost be?

I've been doing with the TOD and it seems pretty straightforward.
i inquired with ADP last year and found that they have a flat fee of $10-$15 per pay period plus a fee for every employee processed per pay period. anyway, with few employees, it may not be worth it because TOD is like you said, pretty easy.

I think you can fill out an online form on the ADP or Ceridian site and they will email you a quotation.
Deal Addict
User avatar
Mar 27, 2003
3344 posts
83 upvotes
oscar_dog wrote:i inquired with ADP last year and found that they have a flat fee of $10-$15 per pay period plus a fee for every employee processed per pay period. anyway, with few employees, it may not be worth it because TOD is like you said, pretty easy.

I think you can fill out an online form on the ADP or Ceridian site and they will email you a quotation.
Thanks for the info...
I think I'll stick to my TOD... :)
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[OP]
Newbie
Jul 7, 2004
95 posts
Hi again. :)

I apologize for not thanking you all for all your help, but was busy with permits and licenses.

I will check TOD out and try to use it.

Thank you all. :)
Deal Fanatic
Feb 1, 2006
9530 posts
678 upvotes
Muskoka
st7860 wrote:exactly. those payroll companies are more useful for larger operations to save them the cost of having a clerk just doing payroll 40 hours a week.
Uh, no. I'm actually an accountant who services a number of small companies, and almost every single one of them uses a payroll service. These are companies with 3-10 people each, they just prefer the ease and convienence of it, the small cost is worth it to them.

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