Failure to deduct

We can assess a penalty of 10% of the amount of CPP, EI, and income tax you fail to deduct.

If you fail to deduct the required amount of income tax more than once in a calendar year, we may apply a 20% penalty to the second or later failures if they were made knowingly or under circumstances of gross negligence.

To find out how to deduct CPP, EI and income tax, see Calculating deductions.

Related topics

• Cancelling or waiving penalties and interest
• Remittance methods