Determine the tax treatment of payments other than regular employment income

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Determine the tax treatment of payments other than regular employment income

Before you calculate, determine if you need to deduct CPP, EI and income tax from payments other than regular employment income or in special situations. Special rules apply to the withholding and reporting in specific situations based on the types of employment and remuneration.

Overview: Set up and manage recipient information

Type or situation and category
Type or situation Category
Advance payments Type of remuneration
Annuity payments Type of remuneration
Bonuses, retroactive pay increases or irregular amounts Type of remuneration
Commission payments Type of remuneration
Payments related to death benefits Type of remuneration
Payments from a profit sharing plan

Includes:

  • EPSP payments
  • DPSP payments
Type of remuneration
Payments of fees for services
Type of remuneration
Qualifying retroactive lump-sum payments Type of remuneration

Lump-sum payments

Includes:

  • Single payments
  • RRSP payments
  • RPP payments
  • DPSP payments
  • RRIF payments
Type of remuneration

Overtime payments :

  • CPP deductions: Paid in same period or paid in a later period
  • EI deductions
  • Income tax deductions: Paid in same period or paid in a later period
Type of remuneration
Payments related to pension or superannuation Type of remuneration
Patronage payments Type of remuneration
Payments related to workers' compensation claims Type of remuneration

Payments of stipends, fees or remuneration related to tenure of office (elected or appointed officials)

Includes:

  • Directors
  • Mayors
  • Municipal councillors
  • School commissioners
  • Chiefs of Indian bands
  • Band councillors
  • Executors
  • Liquidators
  • Administrators of estates
  • Any other position when a person is elected or appointed to that office
Type of remuneration
Payments from a registered disability savings plan (RDSP) Type of remuneration
Payments from retirement compensation arrangements (RCA) Type of remuneration
Payments from supplementary unemployment benefit plan (SUBP) Type of remuneration
Payments from registered education savings plan (RESP) Type of remuneration
Payments of retiring allowances Type of remuneration
Payments related to salary deferral arrangements Type of remuneration
Taxable benefit Type of remuneration
Payments of tips Type of remuneration
Vacation pay and public holidays payments Type of remuneration
Payments of wages in lieu of termination notice Type of remuneration
Payments from wage-loss replacement plans Type of remuneration
Payments to agriculture and horticulture workers
Type of employment
Payments and earnings related to barbers and hairdressers Type of employment
Payments to caregivers, baby-sitters and domestic workers
Type of employment
Payments to emergency services volunteers Type of employment
Payments to employee of an employment agency (temporary-help) Type of employment
Payments to First Nations workers Type of employment
Payments to fishers Type of employment
Payments to forestry workers for power saws or tree trimmers
Type of employment
Payments to hunting, trapping and forestry workers Type of employment
Payments to police officers for special or extra duty from third parties
Type of employment
Payments and earnings related to taxi drivers and drivers of other passenger-carrying vehicles Type of employment
Payments to workers at a circus, fair, parade or similar activity Type of employment
Employee who dies Employee situation
Employee who is a non-resident Employee situation
Employee who is hired as a family member or a related person
Employee situation
Employee who is working outside Canada for a Canadian company or the Canadian government Employee situation
Employee who is leaving Employee situation
Employee who is on parental leave Employee situation

Employee's life events: Start, stop or restart CPP deductions

Includes:

  • Employee turns 18 in the year
  • Employee turns 70 in the year
  • Employee gives you a completed Form CPT30
  • Employee is considered to be disabled under the CPP
  • Employee dies in the year
Employee situation
Employer who provides a wage-loss replacement plan for short-term disability (reduced EI premium rate)
Employer situation
Employer who is a non-resident employer
Employer situation

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Date modified:
2024-09-11