Payroll issues focus of CRA review

Program audit provides insight into employers’ understanding of obligations
By Sheila Brawn
|Canadian Payroll Reporter|Last Updated: 04/03/2017

Payroll practitioners are more confident calculating taxable benefits for group term life insurance, accidental death and dismemberment (AD&D), and gifts and awards than they are for stock options, personal and living expenses, and housing-related benefits.

This is one of the findings from a recent review that the Canada Revenue Agency (CRA) conducted on its Employer Compliance Audit (ECA) Program. The agency says it carried out the evaluation to determine how well the program is achieving its mandate of maintaining the integrity of the tax system through employer education and enforcement.

The program is responsible for auditing employers to ensure that they are complying with requirements for reporting employment income and taxable benefits, withholding and remitting source deductions, and properly classifying workers as employees or self-employed individuals.