What are employers in Canada obligated to withhold from employee wages?

Employers in Canada are required to withhold certain amounts from employee wages primarily for tax purposes and contributions to Employment Insurance (EI). This obligation exists to ensure that employees meet their tax liabilities and contribute to social safety nets that provide financial support during periods of unemployment.

Taxes withheld from wages typically include federal and provincial income taxes, which are calculated based on the employee's earnings and the applicable tax rates. Employers are also responsible for deducting EI premiums from wages, which provide employees access to benefits in case of job loss, sickness, or maternity leave. This system is crucial for maintaining compliance with Canadian tax laws and supporting the social welfare system.

Bonus payments and health care costs, while relevant in the context of employee remuneration and benefits, are not mandatory withholdings that employers are obligated to deduct from wages. Pension contributions can be a part of an employer’s responsibilities but are not universally required for all employees unless they have opted into a specific pension plan.