Payroll Deductions

Payroll Remittances

Employers are responsible for deducting income tax, Canada Pension Plan (CPP) and Employment Insurance Premium (EI) from employees’ paycheques. They are also responsible for remitting this money to Canada Revenue Agency, usually on or before the 15th day of the month following the month in which the deductions are deducted.

Employers are responsible for deducting income tax from the salaries, wages or other remuneration paid to employees. Since employees fall into various categories, employers usually need to complete TD1, Personal Tax Credit Return and TD1AB, Alberta Personal Tax Credit Return, in helping employers to decide what to deduct from their paycheque.

Payroll Deductions

CPP 2019 2020
Annual Maximum Pensionable Earnings $57,400.00 $60,100.00
Annual Basic Exemption $3,500.00 $3,500.00
Annual Maximum Contributory Earnings $53,900.00 $56,600.00
CPP Contribution Rate 5.10% 5.25%
Annual Maximum CPP Contributions $2,748.90 $2,971.50
EI 2019 2020
Annual Maximum Insurable Earnings $53,100.00 $54,200.00
Employee Contribution Rate 1.62% 1.58%
Employer Contribution Rate 2.268% 2.212%
Annual Maximum Employee Contributions $860.22 $856.36
Annual Maximum Employer Contributions $1,204.31 $1,198.90

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