Payroll Deductions – Quick Facts

EI – Employment Insurance

  • 1.87% of your pay is deducted as EI premiums, up to a maximum of $729.30 per year (2007)
  • your employer contributes 1.4 times the amount you contribute, up to a maximum of $1,021.02 per year (2007)

CPP – Canadian Pension Plan

  • 4.95% of your pay is deducted for CPP contributions, up to a maximum of $1910.70 per year (2007)
  • your employer matches the amount deducted in an equal contribution

Income Tax

  • Income taxes are charged by both the federal and provincial governments.  The provincial income tax rates differ among the provinces, while the federal government rates are charged according to income.

Union Dues

  • If you belong to a union you a required to pay union dues, which are tax-deductible.

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