Statutory-Deductions

CPP
What CPP means in Canadian payroll, how it appears on a paycheque, and why payroll tracks pensionable earnings separately.
CPP2
What CPP2 means in Canadian payroll and how the second additional CPP contribution can appear beside regular CPP deductions.
EI
What EI means in Canadian payroll, how it appears on a paycheque, and why payroll tracks insurable earnings.
Federal Income Tax Deduction
What federal income tax deduction means in Canadian payroll and how it fits inside source deductions on a paycheque.
Income Tax Deduction
What an income tax deduction means in Canadian payroll and how it differs from CPP, EI, and the employee's final tax bill.
Insurable Earnings
What insurable earnings mean in Canadian payroll and why EI calculations use this base instead of gross pay alone.
Pensionable Earnings
What pensionable earnings mean in Canadian payroll and why CPP calculations use this base instead of gross pay alone.
Provincial Income Tax Deduction
What provincial income tax deduction means in Canadian payroll and how province-specific withholding sits beside federal tax deductions.
Source Deductions
What source deductions means in Canadian payroll and how the term connects employee deductions to employer remittance.
Statutory Deductions
Mandatory Canadian payroll deduction terms including source deductions, income tax deduction, CPP, EI, pensionable earnings, and insurable earnings.
TD1
What TD1 means in Canadian payroll and how the form affects income tax withholding during payroll processing.