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.
Tax Department
Download a PDF of this issue of Tax Target
