Testing accuracy of source deductions

Payroll needs to develop test plan that covers all relevant data values
By Alan McEwen
|Canadian Payroll Reporter|Last Updated: 09/09/2013

One of payroll’s essential duties is to ensure employees are paid accurately.

Among other things, this means assuring payroll source deductions — income tax, Canada Pension Plan (CPP) and employment insurance (EI) — are being calculated properly. The essential tools for this task are the Canada Revenue Agency’s (CRA) Payroll Deductions Online Calculator and Revenu Quebec’s WinRAS. The government publications that provide the technical details behind these tools are also important: the CRA’s T4127 and Revenu Quebec’s TP-1015.F guides.

For payroll, having these in your toolkit leaves you free to the focus on the input values required for your test plans. The goal should be to systematically develop a test plan that covers all of the data values relevant to your own particular situation.