All payments made to employees for salary and wages are subject to the following statutory deductions.
Income Tax
- In accordance with Canada Revenue Agency (CRA) regulations, Income Tax is deducted from salary and wages based on the information provided on the TD1 and TD1ON forms.
- If there is a change in your entitlement to personal tax credits, you should complete new TD1 and TD1ON forms and return them to Human Resources (forms available online and in Human Resources)
- Having trouble filling out your Tax Credit Forms? Use the following worksheets: TD1 – Worksheet, TD1ON – Worksheet
Canada Pension Plan (CPP)
- All employees between the ages of 18 and 70 are subject to CPP deductions
- The deduction rate and the annual maximum contributions are established by CRA and vary yearly
- If an employee is in receipt of a Canada Pension Benefit, and are over the age of 65, and wishes to be CPP exempt (i.e. CPT30 form), proof must be presented in Payroll Services before this change can be made.
| CPP Rates | 2022 |
2023 |
| Maximum Pensionable Earnings (YMPE) | $64,900 | $66,600 |
| Annual Basic Exemption | $3,500 | $3,500 |
| Maximum Contributory Earnings | $61,400 | $63,100 |
| Contribution Rate (Employee) | 5.70% | 5.95% |
| Maximum Contribution (Employee) | $3,499.80 | $3,754.45 |
Employment Insurance (EI)
There are no age exemptions on payment of EI.
| Employment Insurance Rates | 2022 |
2023 |
| Maximum Annual Insurable Earnings | $60,300 | $61,500 |
| Premium Rate (Employee) | 1.58% | 1.63% |
| Annual Maximum Premium (Employee) | $952.74 | $1,002.45 |