Table of Contents Income Tax ................................................................................................................................ 11-47 Deducting Income Tax ....................................................................................................... 11-48 Federal Income Tax ............................................................................................................ 11-48 Provincial and Territorial Income Tax .............................................................................. 11-49 Quebec Income Tax............................................................................................................. 11-49 Calculating the Income Tax Deduction .................................................................................. 11-50 Table Method ...................................................................................................................... 11-50 Manual Method ................................................................................................................... 11-51 Formula Method ................................................................................................................. 11-51 Payroll Deductions Online Calculator (PDOC)................................................................ 11-51 Special Taxation Considerations....................................................................................... 11-53 Other Deductions ............................................................................................................... 11-53 Remitting To CRA ..................................................................................................................... 11-53 Remitter Types..................................................................................................................... 11-54 Quarterly Remitter Category for New Employers ........................................................... 11-54 Remittance Forms ............................................................................................................... 11-55 Types of Remittance Forms ................................................................................................ 11-55 Due Dates ............................................................................................................................ 11-55 PD7A Statement of Account ................................................................................................... 11-55 Penalties for Non-Compliance .......................................................................................... 11-56 Mandatory Remittances to Financial Institutions ........................................................... 11-56 TeleReply ............................................................................................................................. 11-56 Calculating the CRA Remittance ............................................................................................ 11-57 Reconciling the CRA Account ........................................................................................... 11-57 Remitting to Revenu Québec ................................................................................................... 11-57 Penalties for Non-Compliance .......................................................................................... 11-58 Revenu Québec Remittance Deadlines ............................................................................. 11-58 Calculating the Revenu Québec Remittance .................................................................... 11-59 Reconciling the Revenue Québec Account ....................................................................... 11-59 Irregular Payments ................................................................................................................... 11-60 Bonuses ................................................................................................................................ 11-60 Transferring a Retiring Allowance to an RRSP/RPP ............................................................ 11-65 Vacation Pay.............................................................................................................................. 11-66 Vacation Time Taken .......................................................................................................... 11-66 Vacation Time Not Taken ................................................................................................... 11-66 Pay in Lieu of Notice................................................................................................................ 11-67 Canada Revenue Agency Tax Treatment for Pay in Lieu of Notice................................ 11-67 Revenu Quebec Treatment for Pay in Lieu of Notice ...................................................... 11-67 Commissions ............................................................................................................................. 11-68 Canada/Quebec Pension Plan Contributions ................................................................... 11-68 Employment Insurance Premiums .................................................................................... 11-70 Quebec Parental Insurance Plan ....................................................................................... 11-71 Income Tax .......................................................................................................................... 11-72 TD1X-Statement of Commission Income and Expenses for Payroll Tax Deductions ................................................................................................ 11-72 TP-1015.R.13.1-V-Statement of Commissions and Expenses for Source Deductions Purposes ....................................................................................... 11-73 Sick Leave Payments................................................................................................................ 11-77 Self-Administered Plans .................................................................................................... 11-77 7