Payroll taxes levied on employers include Canada Pension and Employment Insurance.Group startsTrue or False

The statement is True.

In Canada, payroll taxes levied on employers indeed include contributions to the Canada Pension Plan (CPP) and Employment Insurance (EI). Both of these are mandatory employer contributions that are calculated based on the earnings of employees.

1. Canada Pension Plan (CPP): This is a retirement savings plan that provides income to contributors when they retire or become disabled. Employers are required to match their employees' contributions to CPP up to a certain limit.

2. Employment Insurance (EI): This program provides temporary financial assistance to unemployed Canadians while they look for work or upgrade their skills. Employers also contribute to this fund, and the rate is generally a percentage of employees' earnings, with employers paying 1.4 times the employee EI contribution.

Both these contributions can represent a significant cost to employers, thus impacting their overall payroll expenses. This adds a layer of compliance that businesses must adhere to in order to support their employees' benefits.