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.
| 2012 | 2011 | |
|---|---|---|
| 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 EI | 1.4 x employee’s portion | 1.4 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 |
| 2013 | 2012 | |
|---|---|---|
| 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 |
| 2012 | 2011 | |
|---|---|---|
| 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 QPP | 5.025% of pensionable earnings | 4.95% of pensionable earnings |
| Employer’s contribution rate to the QPP | 5.025% of pensionable earnings | 4.95% of pensionable earnings |
| 2012 | 2011 | |
|---|---|---|
| Quebec Health Services Fund (HSF) (employers only) | 2.7% of total payroll1 | 2.7% of total payroll payroll1 |
| Commission des normes du travail (CNT) (employers only) | 0.08% of total payroll | 0.08% 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): | 2012 | 2011 |
|---|---|---|
| Contribution rate to Employment Insurance (EI) | $1.83 per $100.00 of earnings | $1.78 per $100.00 of earnings |
| Employer’s portion of EI | 1.4 x employee’s portion | 1.4 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 dividend | 125% of actual dividend | 125% of actual dividend |
| Dividend tax credit – Federal | 16.667% of actual dividend | 16.667% of actual dividend |
| Dividend tax credit – Quebec | 10% of actual dividend | 10% of actual dividend |
| Taxable eligible dividend | 138% of actual dividend | 141% of actual dividend |
| Eligible dividend tax credit – Federal | 20.727% of actual dividend | 23.17% of actual dividend |
| Eligible dividend tax credit – Quebec | 16.422% of actual dividend | 16.779% 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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