Taxation and Employee Deductions Learning Module

Introduction and Objectives

The objectives of the Taxation and Employee Deductions module are to:
  • understand how federal employee payroll deductions work for income tax, Canada Pension Plan ("CPP"), and Employment Insurance ("EI");
  • learn how to determine payroll deductions for income tax, CPP, and EI; and
  • understand the requirements for employers relating to Workers' Compensation coverage (WorkSafe NB).
Navigating this Module
This module features these components:
Written Material: This module describes some of the important taxation and business issues related to the practice of law, including obtaining a business number, setting up your payroll, determining and remitting your income tax, CPP, and EI deductions, and making your assessed WCB payments as an employer.
Test: The test for this module features a fact pattern followed by a question   Test questions are drawn from the written material only.
Additional Resources: Additional valuable resources are available, some of which are included under the Additional Resources section of this module. You are not tested on this additional material, although you are encouraged to review any resources that best suit the nature of your practice or if you experience difficulty comprehending the material that will be tested.
Although we aim to present a comprehensive module, this module is not exhaustive. This module is not a substitute for exercising professional judgment and does not constitute legal advice.
This module was updated in January 2018. As you read through this module, if you find any information that is unclear, inaccurate or outdated, please advise the Law Society.


The information contained in these modules, including references to websites, appendices or links, has been prepared to assist readers as they develop or refresh their skills in the various areas of law covered by the modules. Given the changing nature of the law, readers should exercise their own skill and professional judgment when using the content. Always refer to the most current statutes, regulations, and practice directions, as well as the most recent case law and any other appropriate sources. These materials do not provide legal advice and should not be relied on in any way.
  1. Obtaining a Business Number

  2. Federal Payroll Deductions

  3. Federal Payroll Deductions (continued)

  4. Federal Payroll Accounts

  5. Federal Payroll Accounts (continued)

  6. Income Tax Deductions

  7. Canada Pension Plan Deductions and Contributions (CPP)

  8. Employment Insurance Premiums (EI)

  9. Employment Insurance Premiums (continued)

  10. Remitting Deductions/Contributions

  11. Remitting Deductions/Contributions (continued)

  12. Information Returns/Recordkeeping

  13. Information Returns/Recordkeeping (continued)

  14. WorkSafeNB (Workers Compensation Coverage)

  15. End of Lesson