Canadians may notice changes on their paystubs beginning this month.
Changes to the Canada Pension Plan (CPP)
- The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2022 is $64,900.
- Contributors who earn more than $64,900 in 2022 are not required or permitted to make additional contributions to the CPP.
- The basic exemption amount for 2022 remains at $3,500.
- The employee and employer contribution rates for 2022 will be 5.70%.
- The self-employed contribution rate will be 11.4%.
- The increase in contribution rate is due to the continued implementation of the CPP enhancement.
Changes to the Employment Insurance Rates (EI)
- The Canada Employment Insurance Commission has set the maximum insurable earnings for 2022 at $60,300, up from $56,300 in 2021.
- The 2022 Employment Insurance (EI) premium rate has been set at $1.58 per $100 of insurable earnings.
- The maximum weekly EI benefit rate increases from $595 to $638 per week.
Do you require assistance calculating your employees' payroll deductions? Contact us today.
Published by Elite Accounting Inc.
© 2022 Elite Accounting
Attribution-NoDerivatives 4.0 International (CC BY-ND 4.0)
