Please find the deductions at source rates for 2022 and 2021 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 you plan more efficiently for the current taxation year and help to prepare T4 and Relevé 1 slips for 2021.
| 2022 | 2021 | |
|---|---|---|
| Contribution rate to Employment Insurance (EI) (Quebec) | $1.20 per $100.00 of earnings | $1.18 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 | $60,300.00 | $56,300.00 |
| Maximum annual premium to EI | $723.60 | $664.34 |
| Maximum annual employer premium to EI | $1,013.04 | $930.08 |
| Contribution rate to Quebec Parental Insurance Plan (QPIP) | $0.494 per $100.00 of earnings | $0.494 per $100.00 of earnings |
| Employer’s portion of QPIP | $0.692 per $100.00 of earnings | $0.692 per $100.00 of earnings |
| Maximum annual insurable earnings of QPIP | $88,000.00 | $83,500.00 |
| Maximum annual premium to QPIP | $434.72 | $412.49 |
| Maximum annual employer premium to QPIP | $608.96 | $577.82 |
| QPP / CPP | QPP | CPP | QPP | CPP |
| Employee’s and employer’s maximum annual contribution | $3,776.10 | $3,499.80 | $3,427.90 | $3,166.45 |
| Maximum pensionable earnings | $64,900.00 | $64,900.00 | $61,600.00 | $61,600.00 |
| Basic exemption | $3,500.00 | $3,500.00 | $3,500.00 | $3,500.00 |
| Employee’s and employer’s contribution rate to the QPP | 6.15% of pensionable earnings | 5.90% of pensionable earnings | ||
| Employee’s and employer’s contribution rate to the CPP | 5.70% of pensionable earnings | 5.45% of pensionable earnings | ||
|
Quebec Health Services Fund (HSF) (employers only) |
1.65% of total payroll1 | 1.65% of total payroll1 |
1 Important: As of January 1, 2021, 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 ≥ $6,500,000). 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.
| 2022 | 2021 | |
|---|---|---|
|
Commission des normes du travail (CNT) (employers only) |
0.06% of total payroll | 0.07% of total payroll |
| Maximum annual earnings subject to the CNT | $88,000.00 | $83,500.00 |
| Employer’s maximum contribution to the CNT | $52.80 | $58.45 |
| All Canadian employees (except Quebec): | ||
| Contribution rate to Employment Insurance (EI) |
$1.58 per $100.00 of earnings |
$1.58 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 | $60,300.00 | $56,300.00 |
| Maximum annual premium to EI | $952.74 | $889.54 |
| Maximum annual employer premium to EI | $1,333.84 | $1,245.36 |
| 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 |
3.9330% of actual dividend |
4.6115% 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 |
16.146% of actual dividend |
16.146% 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.
