Happy New Year! Below is a summary of 2019 Canadian payroll tax changes.
Starting in January 2019, Canadians’:
- Federal Personal Tax Credits increase from $11,809 to $12,069. The 2019 TD1 forms are now available on CRA’s website.
- EI premiums are decreasing from 1.66% to 1.62%, this reduced rate is offset by an increase in the maximum annual insurable earnings from $51,700 to $53,100. If your employees are earning more than the maximum, it equates to an increased contribution of $2.00 per year for the employee and $2.80 to your business expense.
- CPP premiums are increasing (the first of five consecutive years of scheduled increases to reach 5.95%) from 4.95% to 5.10%, the maximum annual pensionable earnings are also increasing from $55,900 to $57,400 (the basic exemption stays the same at $3,500). If your employees are earning more than the maximum, it equates to an increased contribution of $155.10 per year to both the employee and your business expense.
Additional changes to Tax Free Savings Account (TSFA) and Registered Retirement Savings Plan (RRSP):
From the team at Finatics Accounting Solutions we wish you a Happy New Year and may you reach all your goals for 2019.