Special Payments

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Special payments	CPP Contributions1	EI Contributions1	Tax deductions
1. Bonuses and retroactive pay increases	Yes	Yes	Yes
2. Retroactive lump-sum payments	Yes	Yes	Yes
3. Overtime pay, including banked overtime payment	Yes	Yes	Yes
4. Vacation pay and statutory holidays, and lump-sum vacation payment	Yes	Yes	Yes
5. Director's fees
- paid to residents of Canada	Yes	No	Yes2
- paid to non-residents of Canada	Yes3	No	Yes
6. Wages in lieu of termination notice	Yes	Yes	Yes
7. Employee Profit Sharing Plans (EPSP)	No	No	No
8. Retirement compensation arrangements (RCA)	No	No	Yes
9. Salary defarral arrangements	Yes	Yes/No4	Yes
- Prescribed plans or arrangements	Yes/No5	Yes/No4	Yes
10. Wage Loss Replacement Plans
- paid by the employer	Yes	Yes	Yes
- paid by third party/trustee and the employer determines the eligibility of the benefits	Yes	Yes	Yes
- paid by third party/trustee and the employer does not determine the eligibility of the benefits	Yes	Yes	Yes
11. Worker's compensation arrangements	No	No	No
- Employee's salary paid before or after a worker's compensation board claims is decided	Yes	Yes	Yes
- Advances or loans equal to the workers' compensation award	No	No	No
- Amount paid in addition to an advance or loan	Yes	Yes7	Yes
- Top-up amounts paid before claim is accepted	Yes	Yes	Yes
- Top-up amounts paid after claim is accepted	Yes	No	Yes
- Top-up amounts paid as sick leave	Yes	No	Yes

¹If you have already deducted the total yearly maximum contributions for the employee's income, do not deduct more contributions. Do not consider amounts deducted by previous employers during the same year.

²Do not deduct income tax if you pay only a director's fee, and you estimate that the total fee will not be more than the claim amount on Form TD1.

³Do not deduct CPP contributions when the employment is performed wholly or partly outside Canada.

⁴To determine if you have to deduct EI, see "Salary deferral arrangement" in this chapter.

⁵To determine if you have to deduct CPP, see "Salary deferral arrangement" in this chapter

⁶Although the amounts are taxable no withholding is required.

⁷An amount you pay in addition to advance or loan is not a top-up amount if you pay it while waiting for a decision on a workers' compensation board claim. This amount is considered as employement income.