Setting up contributions and deductions with your payroll provider
When you set up your TFSA and/or RRSP contributions and deductions, be prepared to address the following questions:
- What type of deductions are you making (e.g., both TFSA and RRSP payroll deductions) for members?
- Will there be employer contributions and for what products (e.g., TFSA and/or RRSP)?
- Are the employer contributions a taxable benefit?
- Yes, all employer contributions to an RRSP and TFSA are considered taxable benefits – set them up as a taxable benefit to ensure proper reporting on the members' T4
- Will you be making matching contributions?
- Yes, both RRSP and TFSA contributions on behalf of the employee (account of CPP, EI, Income Tax and CRA tax slip reporting)
- How will you be deducting the amounts - as a percentage (%) / dollar ($) amount from each pay?
- Is there a maximum employer matching amount (e.g., up to 4% to a maximum of $3,000/year)?
- What earnings are to be included in the calculation to determine contributions and deductions (e.g., base earnings plus overtime, base earning plus commissions, etc.)?
- How often will these deductions and employer contributions be made - every pay period (e.g., bi-weekly)?