|Special payments||CPP Contributions1||EI Contributions1||Tax deductions|
|2.) Bonuses and retroactive pay increases||Yes||Yes||Yes|
|3.) Director's fees paid to residents or non-residents|
|- Fee Only||Yes2||No||Yes3|
|- Fee in addition to salary||Yes/No4||Yes/No4||Yes|
|4.) Employees profit sharing plans (EPSP)||No||No||No|
|5.) Overtime pay, including banked overtime payment||Yes||Yes||Yes|
|6.) Prescribed plans or arrangements-on amounts received||Yes/No5||Yes/No5||Yes|
|7.) Qualifying retroactive lump-sum payments6||Yes||Yes||Yes|
|8.) Retirement compensation arrangements (RCA)||No||No||Yes|
|9.) Retiring allowances (also called severance pay)||No||No||Yes7|
|10.) Salary deferral arrangements-on amounts received||Yes||Yes||Yes|
|11.) Vacation pay, public holidays and lump-sum vacation payment||Yes||Yes||Yes|
|12.) Wages in lieu of termination notice||Yes||Yes||Yes|
|13.) Wage Loss Replacement Plans|
|- Payments from uninsured plans||No||Yes||Yes|
|- Payments from insured plans||No||No||No8|
|14.) Worker's compensation awards|
|- 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 before the claim is accepted||Yes||Yes9||Yes|
|- Top-up amounts paid after claim is accepted||Yes||No||Yes|
|- Top-up amounts paid as sick leave after the claim is accepted||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 CPP contributions when the employment is performed wholly or partly outside Canada.
3Do 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.
4Determination to deduct CPP, EI or both depends on the status of the resident director’s employment. Do not deduct EI on the fees portion.
5To determine if you have to deduct CPP, EI or both, see “Prescribed plans or arrangements”.
6Qualifying retroactive lump-sum payments may be subject to CPP and/or EI in addition to tax.
7Do not deduct income tax on the amount of retiring allowance that is transferred directly to the recipient’s RPP or RRSP (up to the amount of the employee’s available RRSP deduction limit).
8Although wage loss replacement plan payments from insured plans are subject to tax, the trustee or insurance company does not have to deduct any tax.
9An amount you pay in addition to an 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 employment income.