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Truro Colchester Welcome Network

Taxes and Government Benefits for Employees

Income Tax

In Canada, people pay income tax each year. This money pays for public services like education and health care.

In Canada, you are responsible for filing your own tax return. You must do this every year by April 30 at the latest. There are several ways to do this:

  • File yourself using an online tool
  • Have one of these professionals file for you:
    • an accountant
    • a bookkeeper
    • a tax-filing service

Most employers deduct income tax from your pay each pay period. If they deduct too much, you will get that money back after you file your tax return. If the employer deducted less than they should have, you will have to pay income tax after you file your tax return.

The Canada Revenue Agency (CRA) offers information that explains the tax system in Canada. This includes videos.

To find out more, visit

Employment Insurance

If you are unemployed, you may qualify for Employment Insurance (EI) benefits. This means you can get some money while you look for work or upgrade your skills. To get these benefits, you must meet these criteria:

  • You lost your job through no fault of your own.
  • You worked in Canada for a specified amount of time in the 52 weeks before you lost your job. In Truro and Colchester, you must have worked at least 665 hours. If you worked 40 hours a week, you would have had to work for about 17 weeks
  • You have been without work for at least 7 days in a row.
  • You are ready, willing, and able to work
  • You are looking for work. You must keep a written record of the employers you contact and when you contacted them.

You may also receive temporary financial assistance from EI under these conditions:

  • You are sick, injured, or subject to quarantine for health reasons
  • You are pregnant or caring for a newborn or adopted child
  • You are caring for a family member who is seriously ill with a significant risk of death

Only people who pay EI premiums can get EI benefits. Most employers deduct your EI premium from your pay.

To find out more, visit and type “employment insurance” in the search box.

Canada Pension Plan

The Canada Pension Plan (CPP) is a program for workers and their families. It helps to cover your costs due to retirement, disability, or death.

Anyone who works in Canada is required to pay into the CPP. Most employers deduct CPP from your pay. The amount you pay is based on the amount you earn.

To find out more, visit and type “Canada Pension Plan” in the search box.

To find out more about finances, see Money and Banking on this website.