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, they are exempt from CPP deductions. Proof must be presented in Payroll Services before this change can be made.
| CPP Rates |
2013 |
2012 |
| Maximum Pensionable Earnings |
$51,100 |
$50,100 |
| Annual Basic Exemption |
$3,500 |
$3,500 |
| Maximum Contributory Earnings |
$47,600 |
$46,600 |
| Contribution Rate (Employee) |
4.95% |
4.95% |
| Maximum Contribution (Employee) |
$2,356.20 |
$2,306.70 |
Employment Insurance (EI)
- There are no age exemptions on payment of EI
| Employment Insurance Rates |
2013 |
2012 |
| Maximum Annual Insurable Earnings |
$47,400 |
$45,900 |
| Premium Rate (Employee) |
1.88% |
1.83% |
| Annual Maximum Premium (Employee) |
$891.12 |
$839.97 |