DAS (deductions at source);

Source deductions (SDs) are the amounts an employer withholds from employees' salaries (taxes, pension and insurance contributions) and then pays to the government. The employer adds their own share. These amounts do not belong to the employer: they are held "in trust" for the government before being remitted.

Brief

Amounts deducted from payroll: taxes, QPP (Quebec Pension Plan), QPIP (Parental Insurance), Employment Insurance (EI)
Paid to the CRA (the tax administration of the Canada ) and to the tax authorities, on a fixed date;
The employer adds their share (their own employer contribution, including the FSS, the Health Services Fund)
The following are used to complete year-end tax forms: the T4 (federal) and the Relevé 1 (Quebec) for each employee

Why does this matter?

In practical terms: on a €1,000 paycheck, the employee doesn't actually receive €1,000; a portion is deducted (taxes, QPP, unemployment insurance), and it's you, the employer, who must pay it to the government. This money isn't yours: it's held "in trust" for the government, much like holding someone else's wallet. This is why unpaid social security contributions result in some of the heaviest penalties and interest charges. Canada And that's one of the first things the tax authorities check. Bankeo provides you with a free, verified accountant or CPA (Chartered Professional Accountant) who calculates withholdings, makes timely payments, and prepares year-end statements. We're here to support you.

Frequently asked questions

What exactly are DAS?

When you pay an employee, you don't give them their entire gross salary: you withhold a portion (taxes, QPP (Quebec Pension Plan), QPIP (Quebec Parental Insurance Plan), unemployment insurance) and remit these amounts to the government on their behalf. These are called source deductions.

How often do I need to pay the DAS?

It depends on the size of your payroll (the total of all salaries). For most small businesses, it's once a month; very large employers pay more often. The IRS will tell you your payment frequency.

How can I be sure I never make a mistake in my SAR calculations?

Because this money is held in trust for the government, an error or delay is costly. Bankeo provides you with a free, verified accountant or CPA who calculates withholdings, makes timely payments, and prepares year-end slips (T4, Relevé 1). We're here to support you.