TAX INFORMATION FOR 2019

January 2019

Here are the deductions at source rates for 2019 and 2018 for Employment Insurance, Quebec Parental Insurance Plan, Quebec Pension Plan (QPP), Canada Pension Plan (CPP), Quebec Health Services Fund 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 2018.

 
2019
2018
Contribution rate to Employment Insurance
(EI) (Quebec)
$1.25 per $100.00 of earnings

$1.30 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
$53,100.00
$51,700.00
Maximum annual premium to EI
$663.75
$672.10
Maximum annual employer premium to EI
$929.25
$940.94

 
2019
2018
Contribution rate to Quebec Parental Insurance
Plan (QPIP)
$0.526 per $100.00 of earnings

$0.548 per $100.00 of earnings

Employer’s portion of QPIP
$0.736 per $100.00 of earnings
$0.767 per $100.00 of earnings
Maximum annual insurable earnings of QPIP
$76,500.00
$74,000.00
Maximum annual premium to QPIP
$402.39
$405.52
Maximum annual employer premium to QPIP
$563.04
$567.58

  
2019
 
2018
QPP
CPP
QPP
CPP
Employee’s and employer’s maximum
annual contribution
$2,991.45
$2,748.90
$2,829.60
$2,593.80
Maximum pensionable earnings
$57,400.00
$57,400.00
$55,900.00
$55,900.00
Basic exemption
$3,500.00
$3,500.00
$3,500.00
$3,500.00
Employee’s and employer’s contribution
rate to the QPP
5.55% of
pensionable
earnings
5.55% of
pensionable
earnings
5.4% of
pensionable
earnings
5.4% of
pensionable
earnings
Employee’s and employer’s contribution
rate to the CPP
5.1% of
pensionable
earnings
5.1% of
pensionable
earnings
4.95% of
pensionable
earnings
4.95% of
pensionable
earnings

 
2019
2018
Quebec Health Services Fund (HSF)
(employers only)
1.70% of total payroll 1

2.3% of total payroll 1

(1) Important: On August 15, 2018, the Minister of Finance of Quebec announced a new plan to reduce the HSF contribution rate. For small and medium-sized businesses in the primary and manufacturing sectors the rate will vary between 1.25% (total payroll ≤ $1,000,000) and 4.26% (total payroll ≥ $6,000,000). For other employers, the HSF contribution rate will vary between 1.70% and 4.26% depending on the total payroll of the employer, and any associated employer, on a worldwide basis.

 
2019
2018
Commission des normes du travail (CNT) (employers only)
0.07% of total payroll
0.07% of total payroll
Maximum annual earnings subject to the CNT
$76,500.00
$74,000.00
Employer’s maximum contribution to the CNT
$53.55
$51.80

All Canadian employees (except Quebec):
2019
2018
Contribution rate to Employment Insurance (EI)
$1.62 per $100.00 of earnings
$1.66 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
$53,100.00
$51,700.00
Maximum annual premium to EI
$860.22
$858.22
Maximum annual employer premium to EI
$1,204.31
$1,201.51

 
2019
2018
Taxable ordinary dividend
115% of actual dividend
116% of actual dividend
Dividend tax credit – Federal
10.3846% of actual dividend
11.6364% of actual dividend
Dividend tax credit – Quebec
6.38% of actual dividend
After March 27th, 7.2848% (Before March 28th, 8.178% )

 
2019
2018
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
16.26% of actual dividend
16.422% of actual dividend

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

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