Federal Income Tax Rates (2024)
PRovincial Income Tax Rates for: BC, Alberta & Ontario (2024)
But wait...there's more!! What about CPP and EI??
the Canada Pension Plan (CPP) (www.hireborderless.com)
The Canada Pension Plan (CPP) is a mandatory public pension plan in Canada that provides basic financial support to retired, disabled, or deceased workers and their families. It is funded through contributions from both employees and employers as well as self-employed individuals.
The CPP is administered by the federal government and is available to all eligible Canadian residents. Eligibility is determined by an individual's age, work history, and contributions made to the plan. Workers who have contributed to the CPP for at least one year are eligible to receive CPP retirement benefits when they reach the age of 65.
The amount of benefits workers receive is based on their average earnings and the number of years they contributed to the plan.
In addition to retirement benefits, the CPP provides survivor and disability benefits to eligible beneficiaries. Survivor benefits are paid to the surviving spouse or common-law partner of a deceased contributor. In contrast, CPP disability benefit is paid to contributors who are unable to work due to a severe and prolonged disability.
The CPP rate for 2024 is 5.95% of your gross salary, up to $68,500 (minus the $3,500 exemption). This is paid by both the employee and the employer.
Ex: Jenny makes $50,000 in salary. She will need to pay 5.95% of her gross salary, minus the $3,500 exemption, meaning she will pay on $46,500. $46,500 x 0.0595 = $2,766.75 to be paid in CPP contributions.
The CPP is administered by the federal government and is available to all eligible Canadian residents. Eligibility is determined by an individual's age, work history, and contributions made to the plan. Workers who have contributed to the CPP for at least one year are eligible to receive CPP retirement benefits when they reach the age of 65.
The amount of benefits workers receive is based on their average earnings and the number of years they contributed to the plan.
In addition to retirement benefits, the CPP provides survivor and disability benefits to eligible beneficiaries. Survivor benefits are paid to the surviving spouse or common-law partner of a deceased contributor. In contrast, CPP disability benefit is paid to contributors who are unable to work due to a severe and prolonged disability.
The CPP rate for 2024 is 5.95% of your gross salary, up to $68,500 (minus the $3,500 exemption). This is paid by both the employee and the employer.
Ex: Jenny makes $50,000 in salary. She will need to pay 5.95% of her gross salary, minus the $3,500 exemption, meaning she will pay on $46,500. $46,500 x 0.0595 = $2,766.75 to be paid in CPP contributions.
Employment Insurance (IE) (www.canada.ca)
The Employment Insurance (EI) program provides temporary income support to unemployed workers while they look for employment or to upgrade their skills. The EI program also provides special benefits to workers who take time off work due to specific life events:
Calculating EI contributions for 2024 tax year.
Maximum insurable income: $63,200 / Rate: 1.66% / Maximum Employee EI Contribution: $1002.45
Ex: Jenny makes $50,000. The EI rate is 1.66% of her gross income. $50,000 x 0.0166 = $830 Jenny will pay $830 in Employment Insurance premiums, based on her $50,000 salary.
- illness
- pregnancy
- caring for a newborn or newly adopted child
- caring for a critically ill or injured person
- caring for a family member who is seriously ill with a significant risk of death
Calculating EI contributions for 2024 tax year.
Maximum insurable income: $63,200 / Rate: 1.66% / Maximum Employee EI Contribution: $1002.45
Ex: Jenny makes $50,000. The EI rate is 1.66% of her gross income. $50,000 x 0.0166 = $830 Jenny will pay $830 in Employment Insurance premiums, based on her $50,000 salary.