Which activity is a payroll-related responsibility of the CRA?

• A. Filing personal income tax for employees
• B. Collecting corporate sales tax
• C. Managing CPP investments
• D. Issuing payroll loans

Answer: (A)

In payroll, the government agency responsible for handling the tax side of wages is the Canada Revenue Agency (CRA). The CRA administers personal income tax and collects taxes that are withheld from employees’ pay, such as income tax, along with CPP and EI contributions that employers remit. So the activity described as filing personal income tax for employees aligns with the CRA’s role in administering and processing personal tax obligations tied to payroll.

The other options don’t involve payroll duties: collecting corporate sales tax relates to GST/HST administration, not payroll; managing CPP investments is handled by the CPP Investment Board, not the CRA; and issuing payroll loans isn’t a function of the CRA.