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.

I thought all business had to.
cpp, 1 to 1
ei, 1 to 1.4
Here in BC.

Originally Posted by OrcKiller

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

Go on Cra website and download the TOD software.Even better if you download the T4 time saver to check annually

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.

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.

You dont need payroll companies for that.its straightforward.Once you know how to do it,it does not get more complicated

Originally Posted by Blunt

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.

..........

Originally Posted by oscar_dog

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...

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.

Originally Posted by st7860

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.