We have an employee we are terminating and his severance is $11222.3 do I take EI, Canada Pension and income tax off of this amount

Generally speaking, termination and severance pay is subject to all applicable withholdings and deductions. Further, you should ensure the amount of severance paid to the employee is accurate. I would encourage you to visit the severance pay calculator our firm has developed to see what your former employee is owed.

Whenever an employee is terminated it is very important to receive legal advice surrounding the treatment and amount of any payments made at the time of termination. I would encourage you set up a time to speak with one of our employment lawyers who would be happy to provide you with a free and confidential consultation.