TAX INFORMATION FOR 2012

Vol. IV No. 46 • January 9, 2012

Here are the deductions at source rates for 2012 and 2011 for Employment Insurance, Quebec Parental Insurance Plan, Quebec Pension Plan, Quebec Health Services Fund, Quebec Health Contribution, and Commission des normes du travail. These rates will help the user plan more efficiently for the current taxation year and help to prepare T4 and Relevé 1 slips for 2011.

 20122011
Contribution rate to Employment Insurance
(EI) (Quebec)
$1.47 per $100.00 of earnings$1.41 per $100.00 of earnings
Employer’s portion of EI1.4 x employee’s portion1.4 x employee’s portion
Maximum annual insurable earnings of EI$45,900.00$44,200.00
Maximum annual premium to EI$674.73$623.22

 20132012
Contribution to Quebec Parental Insurance
Plan (QPIP)
$0.559 per $100.00 of earnings$0.537 per $100.00 of earnings
Employer’s portion of QPIP$0.782 per $100.00 of earnings$0.752 per $100.00 of earnings
Maximum annual insurable earnings$66,000.00$64,000.00
Maximum annual premium to QPIP$368.94$343.68

 20122011
Employee’s Quebec Pension Plan (QPP)
maximum annual contribution
$2,341.65$2,217.60
Employer’s QPP maximum annual contribution$2,341.65$2,217.60
Maximum pensionable earnings – QPP$50,100.00$48,300.00
Basic exemption – QPP$3,500.00$3,500.00
Employee’s contribution rate to the QPP5.025% of pensionable earnings4.95% of pensionable earnings
Employer’s contribution rate to the QPP5.025% of pensionable earnings4.95% of pensionable earnings

 20122011
Quebec Health Services Fund (HSF) (employers only)2.7% of total payroll12.7% of total payroll payroll1
Commission des normes du travail (CNT) (employers only)0.08% of total payroll0.08% of total payroll
Maximum annual earnings subject to the CNT$66,000.00$64,000.00
Employer’s maximum contribution to the CNT$52.80$51.20

(1) Important: The employer’s contribution rate to the HSF will vary between 2.70% (total payroll ≤ $1,000,000) and 4.26% (total payroll ≥ $5,000,000), depending on the total payroll of the employer, and any associated employers, on a worldwide basis.
All Canadian employees (except Quebec):20122011
Contribution rate to Employment Insurance (EI)$1.83 per $100.00 of earnings$1.78 per $100.00 of earnings
Employer’s portion of EI1.4 x employee’s portion1.4 x employee’s portion
Maximum annual insurable earnings of EI$45,900.00$44,200.00
Maximum annual premium to EI$839.97$786.76
Taxable ordinary dividend125% of actual dividend125% of actual dividend
Dividend tax credit – Federal16.667% of actual dividend16.667% of actual dividend
Dividend tax credit – Quebec10% of actual dividend10% of actual dividend
Taxable eligible dividend138% of actual dividend141% of actual dividend
Eligible dividend tax credit – Federal20.727% of actual dividend23.17% of actual dividend
Eligible dividend tax credit – Quebec16.422% of actual dividend16.779% of actual dividend
The matters highlighted in this tax memo are presented in broad general terms and, of course, cannot be applied without consideration of all circumstances. The firm will be pleased to discuss with recipients the possible effects of these matters in specific situations.
For additional information, please contact a member of our Tax Department.

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