Canadians may notice a decrease on their paycheques beginning in January 2021.
The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2021 will be $61,600.
Contributors who earn more than $61,600 in 2021 are not required or permitted to make additional contributions to the CPP.
The basic exemption amount for 2021 remains at $3,500.
The employee and employer contribution rates for 2021 will be 5.45%, and the self-employed contribution rate will be 10.9%. The increase in contribution rate is due to the continued implementation of the CPP enhancement.
The Canada Employment Insurance Commission has set the 2021 Employment Insurance (EI) premium rate at $1.58 per $100 of insurable earnings for employees and $2.21 for employers who pay 1.4 times the employee rate, which is unchanged from the 2020 premium rate.
Do you require assistance calculating your employee’s payroll deductions? Contact us today to see how we can bring the numbers to life!
Published by Elite Accounting Inc.
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