Tax Information for 2017

January 2017

Here are the deductions at source rates for 2017 and 2016 for Employment Insurance, Quebec Parental Insurance Plan, Quebec Pension Plan (QPP), Canada Pension Plan (CPP), 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 2016.

 
2017
2016
Contribution rate to Employment Insurance
(EI) (Quebec)
$1.27 per $100.00 of earnings

$1.52 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
$51,300.00
$50,800.00
Maximum annual premium to EI
$651.51
$772.16
Maximum annual employer premium to EI
$912.11
$1,081.02

Contribution rate to Quebec Parental Insurance
Plan (QPIP)
$0.548 per $100.00 of earnings

$0.548 per $100.00 of earnings
Employer’s portion of QPIP
$0.767 per $100.00 of earnings
$0.767 per $100.00 of earnings
Maximum annual insurable earnings of QPIP
$72,500.00
$71,500.00
Maximum annual premium to QPIP
$397.30
$391.82
Maximum annual employer premium to QPIP
$556.08
$548.41

QPP / CPP:
QPP
CPP
QPP
CPP
Employee’s and employer’s maximum
annual contribution
$2,797.20
$2,564.10
$2,737.05
$2,544.30
Maximum pensionable earnings
$55,300.00
$55,300.00
$54,900.00
$54,900.00
Basic exemption
$3,500.00
$3,500.00
$3,500.00
$3,500.00
Employee’s and employer’s contribution
rate to the QPP
5.40% of pensionable earnings
5.325% of pensionable earnings
Employee’s and employer’s contribution
rate to the CPP
4.95% of pensionable earnings
4.95% of pensionable earnings

Quebec Health Services
Fund (HSF) (employers only)
2.5% of total payroll 1

2.7% of total payroll 1

(1) Important: As of January 1, 2017, the employer’s HSF contribution rate for small and medium-sized businesses in the manufacturing sector will be reduced to vary between 1.55% (total payroll ≤ $1,000,000) and 4.26% (total payroll ≥ $5,000,000). For other employers, the HSF contribution rate will vary between 2.5% and 4.26% depending on the total payroll of the employer, and any associated employer, on a worldwide basis.

Quebec Health Contribution:
2017
2016
The Quebec Health Contribution has been eliminated for the 2017 year. No withholdings on wages will be required as of January 1, 2017.
Revenue under $18,570
$0
Revenue from $18,570
to $41,625
Whichever is less: $100;
or 5% x (revenue - $18,570)
Revenue from $41,625
to $134,095
Whichever is less: $200;
or $100 + [5% x (revenue - $41,625)]
Revenue over $134,095
Whichever is less: $1,000;
or $200 + [4% x (revenue - $134,095)]

Commission des normes du travail (CNT) (employers only)
0.07% of total payroll

0.08% of total payroll
Maximum annual earnings subject to the CNT
$72,500.00

$71,500.00
Employer’s maximum contribution to the CNT
$50.75

$57.20

All Canadian employees (except Quebec):
2017
2016
Contribution rate to Employment Insurance (EI)
$1.63 per $100.00 of earnings
$1.88 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
$51,300.00
$50,800.00
Maximum annual premium to EI
$836.19
$955.04
Maximum annual employer premium to EI
$1,170.67
$1,337.06

Taxable ordinary dividend
117% of actual dividend
117% of actual dividend
Dividend tax credit – Federal
12.3104% of actual dividend
12.3104% of actual dividend
Dividend tax credit – Quebec
8.249% of actual dividend
8.249% of actual dividend

Taxable eligible dividend
138% of actual dividend
138% of actual dividend
Eligible dividend tax credit – Federal
20.727% of actual dividend
20.727% of actual dividend
Eligible dividend tax credit – Quebec
16.422% of actual dividend
16.422% of actual dividend

For additional information, please contact a member of our Tax Department.

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