

It is assumed that advances are deducted from net pay. Hence, some employees do not report advances when reporting payroll but instead deduct or recoup the advance outside of the pay stub (payroll reporting).
However, Canadian Payroll rules require that CPP, EI, and Income Tax is deducted from advances.
It does not stop with just advances. What about Director's fees, Employee Profit Sharing, Honorariums or Furloughs, Incentive Payments, Employer-paid Maternity Benefits, Lump Sum payments, Tips or gratuities, Vacation Pay and even bartering services?
What does this mean if you are either being paid (employee) or the employer?
Our sister company CDNPayroll.com Inc. (who provides payroll services to businesses throughout Canada), offers a comprehensive yet easy to follow explanation of special employment payments.
If you have any questions, contact our office (in order of preference):