Payroll tax rates for 2017

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Dave Sran, BBA Hons, CPA, CGA
Dave Sran, BBA Hons, CPA, CGA
Dave Sran, BBA Hons, CPA, CGA

Tax Question:

What are the payroll tax rates changes for 2017 for withholdings?

Facts:

Payroll tax rates change every year and it is important for you to know the correct rates when preparing payroll remittances. See below for updated rates for 2017 with 2016 comparison.

Discussion:

Canada Pension Plan 2016 2017
Annual maximum pensionable earnings $54,900 $55,300
Annual basic exemption $3,500 $3,500
Contribution rate 4.95% 4.95%
Annual maximum employee contribution $2,544.30 $2,564.10
Annual maximum employer contribution $2,544.30 $2,564.10

 

Employment Insurance 2016 2017
Annual maximum insurable earnings $50,800 $51,300
Annual maximum employee contribution $955.04 $836.19
Employee contribution rate 1.88% 1.63%
Employer contribution rate 2.63% 2.28%

 

Federal Tax Credits 2016 2017
Basic personal $11,474 $11,635
Spouse/Equivalent to spouse $11,474 $11,635

 

B.C. Provincial Tax Credits 2016 2017
Basic personal $10,027 $10,208
Spouse/Equivalent to spouse $8,586 $8,740

 

Dave Sran, BBA (Hons), CPA, CGA, Manager

Staff Accountant, Gilmour Knotts Chartered Accountant.
Email: 
faqs@gilmour.ca

Email: faqs@gilmour.ca
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