Profile
PROFILE

Services
SERVICES

FAQ's
FAQ's

Links
LINKS

Contact Us
CONTACT US

home
HOME

Profile

Can you clarify payroll deductions for me?

For calendar 2016 the following are limits/exemptions for employee deductions:

CPP Max Earnings $54,900 Exemption $3,500 Deduction Rate 4.95%
EI Max Earnings $50,800 Exemption $0 Deduction Rate 1.88%
WCB Max Earnings $88,000 Exemption $0 Rate variable

Note that the Ontario government is calculating personal income taxes separately from the Federal government. For calendar 2016 there are two personal exemption amounts: Federal $11,474 and Provincial $10,011. Please update your payroll program accordingly.

CPP Deductions. Employers are not required to deduct CPP from any employee who is under 18 or over 69 years old. Employee’s between the age of 60 and 69 and collecting CPP Benefits are now required to contribute to CPP.

EI Deductions. Employers are required to deduct EI from all employees except employees who would be exempt through blood or marriage. This exemption will include spouses, siblings, children, parents, aunts and uncles. All shareholders of a corporation who are employees are exempt from EI deductions.

WCB Deductions. The rules have changed significantly over the past few years on required coverage but basically every employee who is not a shareholder or director has to be covered (ie: included in your payment calculations) for each filing.

Please note that the dividends paid by a company (that is operating under CU Class 700) to shareholders, regardless of their day to day involvement with the company, are part of the WSIB premium calculation.

Return to FAQs Main Page



PROFILE | SERVICES | FAQ's | LINKS | CONTACT US | HOME

Contren Management Consultants Inc.
1030 Upper James, Suite 204
Hamilton, Ontario. Canada L9C 6X6
Tel: (905) 769-6400
Fax: (905) 575-4600

E-mail: info@contrenmanagement.com

Contren Management Consultants Inc. 1999. All Rights Reserved. - Website Powered by Duker Web Design.