Question

Where an employee-employer relationship exists, the CRA requires the employer to _______________.

Option 1: Disclose financial statements quarterly
Option 2: Provide free employee training
Option 3: Deduct and remit income taxes
Option 4: Establish a company union

Answer 1

The CRA requires employers to deduct and remit income taxes from their employees' wages as part of an employee-employer relationship. These contributions support social security and insurance programs.

Step-by-step explanation:

Where an employee-employer relationship exists, the CRA (Canada Revenue Agency) requires the employer to deduct and remit income taxes. Employers must withhold taxes such as income tax and social security contributions from their employees' wages. These are known as withholding taxes, including advance payment of income tax, social security contributions, and insurance premiums. Furthermore, employers pay taxes based on the employee's wages from their own funds to cover their part of social security and other employment-related insurance programs. This system ensures that taxes are collected throughout the year and helps prevent employees from facing large tax bills during the annual tax filing season.