Elected or appointed officials

Individuals may be elected or appointed to various positions. Some examples of elected or appointed officials include mayors, municipal councilors, school commissioners, Chiefs of Indian Bands, Band councillors, executors, liquidators, or administrators for settling estates, members of a Board of Referees at the Commission of Canada Employment Insurance, corporation directors, or any other position when a person is elected or appointed. If you paid stipends, fees or remuneration to these individuals you have to deduct the following amounts:

• Canada Pension Plan (CPP) contributions, except for Chiefs of Indian Bands unless there is an election in place to pay CPP. For further information regarding payroll reporting for Indians, see Indians.
• Income tax.

Normally these amounts are not subject to Employment Insurance (EI) premiums.

CPP contributions

Deduct CPP contributions from the following amounts:

• honorariums from employment or office;
• director's fees, management fees, fees paid to board or committee members, and executor's, liquidator's, or administrator's fees earned to administer an estate (as long as the executor, liquidator, or administrator does not act in this capacity in the regular course of business);
• stipend, fees or remuneration paid to elected or appointed officials.

Do not deduct CPP contributions from the following amounts:

• stipends, fees or remuneration paid to a Chief of an Indian Band, or Band councilors unless a CPP election has been completed.

EI premiums

Deduct EI premiums from the following amounts:

• employment of a person holding an office in the private sector. Although the following list is not exhaustive, employment not subject to EI premiums includes mayors, municipal councilors, school commissioners, chiefs of Indian bands, band councilors, executors, liquidators, or administrators for settling estates, corporation directors, chief firefighters or any other position when a person is elected or appointed to that office. However it does not include individuals who hold an office in a union or an association of unions or individuals appointed to a position within the federal or provincial governments or agencies.
• stipends, fees or remuneration paid to elected or appointed officials who hold an office in a union or an association of unions or hold federal or provincial offices.

Income tax

Deduct income tax from the following amounts:

• director's fees, management fees, fees paid to board or committee members, and executor's, liquidator's, or administrator's fees earned to administer an estate (as long as the executor, liquidator, or administrator does not act in this capacity in the regular course of business);
• stipend, fees or remuneration paid to elected or appointed officials.