TAX TARGET

TAX INFORMATION FOR 2020

January 2020

Here are the deductions at source rates for 2020 and 2019 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 2019.

 
2020
2019
Contribution rate to Employment Insurance
(EI) (Quebec)
$1.20 per $100.00 of earnings

$1.25 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
$54,200.00
$53,100.00
Maximum annual premium to EI
$650.40
$663.75
Maximum annual employer premium to EI
$910.56
$929.25

 
2020
2019
Contribution rate to Quebec Parental Insurance
Plan (QPIP)
$0.494 per $100.00 of earnings

$0.526 per $100.00 of earnings
Employer’s portion of QPIP
$0.692 per $100.00 of earnings
$0.736 per $100.00 of earnings
Maximum annual insurable earnings of QPIP
$78,500.00
$76,500.00
Maximum annual premium to QPIP
$387.79
$402.39
Maximum annual employer premium to QPIP
$543.22
$563.04

  
2020
 
2019
QPP
CPP
QPP
CPP
Employee’s and employer’s maximum
annual contribution
$3,146.40
$2,898.00
$2,991.45
$2,748.90
Maximum pensionable earnings
$58,700.00
$58,700.00
$57,400.00
$57,400.00
Basic exemption
$3,500.00
$3,500.00
$3,500.00
$3,500.00
Employee’s and employer’s contribution
rate to the QPP
5.70% of
pensionable
earnings
5.70% of
pensionable
earnings
5.55% of
pensionable
earnings
5.55% of
pensionable
earnings
Employee’s and employer’s contribution
rate to the CPP
5.25% of
pensionable
earnings
5.25% of
pensionable
earnings
5.1% of
pensionable
earnings
5.1% of
pensionable
earnings

 
2020
2019
Quebec Health Services Fund (HSF)
(employers only)
1.65% of total payroll 1

1.70% of total payroll 1

(1) Important: As of January 1, 2020, the HSF contribution rate for small and medium-sized businesses in the primary and manufacturing sectors 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 1.65% and 4.26% depending on the total payroll of the employer, and any associated employer, on a worldwide basis.

 
2020
2019
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
$78,500.00
$76,500.00
Employer’s maximum contribution to the CNT
$54.95
$53.55

All Canadian employees (except Quebec):
2020
2019
Contribution rate to Employment Insurance (EI)
$1.58 per $100.00 of earnings
$1.62 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
$54,200.00
$53,100.00
Maximum annual premium to EI
$856.36
$860.22
Maximum annual employer premium to EI
$1,198.90
$1,204.31

 
2020
2019
Taxable ordinary dividend
115% of actual dividend
115% of actual dividend
Dividend tax credit – Federal
10.3846% of actual dividend
10.3846% of actual dividend
Dividend tax credit – Quebec
5.4855% of actual dividend
6.38% of actual dividend

 
2020
2019
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
16.146% of actual dividend
16.26% of actual dividend

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

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