PART IVInsurable Earnings and Collection of Premiums
81 In this Part,
- authorized person
authorized person means a person authorized by the Minister for the purposes of this Part; (personne autorisée)
judge means a judge of a superior court having jurisdiction in the province where the matter arises or a judge of the Federal Court; (juge)
Minister means the Minister of National Revenue. (ministre)
Payment of Premiums
Marginal note:Deduction and payment of premiums
(a) deduct the prescribed amount from the remuneration as or on account of the employee’s premium payable by that insured person under section 67 for any period for which the remuneration is paid; and
(b) remit the amount, together with the employer’s premium payable by the employer under section 68 for that period, to the Receiver General at the prescribed time and in the prescribed manner.
Marginal note:Maximum deduction by a particular employer
(2) The employer shall not make any deduction as or on account of the person’s premium for a year if in that year the insurable earnings paid by the employer to the person have reached the maximum yearly insurable earnings.
Marginal note:Payment at financial institution
(3) If the employer is a prescribed person at the prescribed time, the remittance shall be made to the account of the Receiver General at a financial institution, within the meaning that would be assigned by the definition financial institution in subsection 190(1) of the Income Tax Act if it were read without reference to paragraphs (d) and (e) of that subsection.
Marginal note:Exception — remittance to financial institution
(3.1) For the purpose of subsection (3), a prescribed person referred to in that subsection is deemed to have remitted an amount to the account of the Receiver General at a financial institution referred to in that subsection if the prescribed person has remitted the amount to the Receiver General at least one day before the day on which the amount is due.
Marginal note:Liability for failure to deduct
(4) Subject to subsection (5), an employer who fails to deduct and remit an amount from the remuneration of an insured person as and when required under subsection (1) is liable to pay to Her Majesty the whole amount that should have been deducted and remitted from the time it should have been deducted.
Marginal note:Subsequent decision
(5) An employer is not liable for failing to make a deduction from the remuneration of an insured person or for any amount that should have been deducted if
(a) the employer is informed in writing in a ruling under section 90 that the employer is not required to make the deduction,
(b) the ruling is not based on information provided by the employer to the Minister that was incorrect in a material particular, and
(c) it is subsequently decided under section 91 or 103 that the deduction should have been made,
but once the decision under section 91 or 103 is communicated to the employer, the employer is liable without interest or penalties under this Act to pay the premium required to be paid by the employer with respect to the insured person.
Marginal note:Deduction from subsequent payment of remuneration
(6) An employer who fails to deduct the employee’s premium as required by subsection (1) from a payment of remuneration to an insured person may deduct an amount equal to it from any subsequent payment of remuneration made to the insured person within 12 months after making the payment from which the deduction was required, but the employer may not deduct, in addition to the premium required by subsection (1), more than one other such premium that the employer previously failed to deduct.
Marginal note:Amount deducted deemed received
(7) If an amount has been deducted under subsection (1), it is deemed for all purposes to have been received at that time by the insured person to whom the remuneration was payable.
Marginal note:Interest on amounts not remitted
(8) If an employer has failed to remit to the Receiver General an amount that the employer was required to remit at the time when it was required, the employer shall pay to the Receiver General interest on that amount at the prescribed rate computed from the day on which the employer was so required to remit the amount to the day of remittance of the amount to the Receiver General.
Marginal note:Penalty for failure to remit
(9) Every employer who in a year fails to remit to the Receiver General an amount that the employer is required to remit at the time when it is required is liable to a penalty of
(a) subject to paragraph (b), if
(i) the Receiver General receives that amount on or before the day it was due, but that amount is not paid in the manner required, 3% of that amount,
(ii) the Receiver General receives that amount
(iii) that amount is not paid or remitted on or before the seventh day after it was due, 10% of that amount; or
(b) 20% of the amount if at the time of the failure a penalty under this subsection was payable by the employer for an amount that the employer was required to remit during the year and the failure was made knowingly or under circumstances amounting to gross negligence.
- 1996, c. 23, s. 82
- 2008, c. 28, s. 39
Marginal note:Excess payment — amount deemed not deducted
82.01 (1) Subject to subsection (2), an amount deducted by an employer under subsection 82(1) for a year after 2015 in respect of an excess payment that was paid — as a result of a clerical, administrative or system error — as remuneration to an insured person is deemed not to have been deducted for the purposes of this Act if
(a) before the end of the third year after the calendar year in which the amount was deducted,
(b) the employer has not filed an information return correcting for the excess payment before making the election referred to in subparagraph (a)(i); and
(c) any additional conditions specified by the Minister are met.
Marginal note:Determination of amount
(2) For the purposes of subsection (1), the amount that is deemed not to have been deducted is the amount that was deducted by the employer or, if the amount determined by the following formula is less than the amount that was deducted by the employer, the amount determined by the formula
A − B
- is the aggregate of all amounts that were deducted by the employer as the employee’s premiums for the year in question; and
- is the aggregate of all amounts that would have been deducted by the employer as the employee’s premiums for that year had the employer not made the excess payment referred to in subsection (1).
Marginal note:Succession of employers
82.1 If, in a year after 2003, one employer immediately succeeds another as the employer of an employee as a result of the formation or dissolution of a corporation or the acquisition — with the agreement of the former employer or by operation of law — of all or part of an undertaking or business of the former employer, the successor employer may, for the application of section 82, take into account the amounts deducted, remitted or paid under this Act by the former employer in respect of the year in relation to the employment of the employee as if they had been deducted, remitted or paid by the successor employer. If the employer takes those amounts into account with respect to the employer’s premium, the employer shall also take them into account with respect to the employee’s premium.
- 2004, c. 22, s. 27
Marginal note:Liability of directors
83 (1) If an employer who fails to deduct or remit an amount as and when required under subsection 82(1) is a corporation, the persons who were the directors of the corporation at the time when the failure occurred are jointly and severally, or solidarily, liable, together with the corporation, to pay Her Majesty that amount and any related interest or penalties.
Marginal note:Application of Income Tax Act provisions
Marginal note:Assessment provisions applicable to directors
(3) The provisions of this Part respecting the assessment of an employer for an amount payable under this Act and respecting the rights and obligations of an employer so assessed apply to a director of the corporation in respect of an amount payable by the director under subsection (1) in the same manner and to the same extent as if the director were the employer mentioned in those provisions.
- 1996, c. 23, s. 83
- 2004, c. 25, s. 134(E)
- Date modified: