2019 Canadian Rates and Limits

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Bethanie Carson
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1 2019 Canadian Rates and Limits Disclaimer: This fact sheet is provided for informational purposes only and is not intended to be legal, tax, or accounting advice. Please contact a legal or tax advisor for further assistance. We are monitoring updates and will update these pages as soon as we can. Canadian Income Tax (CIT) Tax bracket thresholds: Rate Portion of Taxable Income 15% on the first $47, % over $47,630 up to $95,259 26% over $95,259 up to $147,667 29% over $147,667 up to $210,371 33% over $210,371 Provincial/Territorial Income Tax Income tax for all provinces (except Quebec) and territories is calculated the same way as federal income tax. Form 428 is used to calculate provincial or territorial income tax. Provincial or territorial specific non- refundable income tax credits are also calculated on Form 428. The provincial/territorial income tax rates (combined chart) is located on the Canada Revenue Agency website. Federal & Provincial Personal Income Tax Credit Federal basic personal amount $12,069* Alberta $19,369* British Columbia $10,682* Manitoba $9,626* New Brunswick $10,264* Newfoundland/Labrador $9,414* Northwest Territories $14,811* Nova Scotia Nunavut $13,618* Ontario $10,582* Prince Edward Island $9,160* Quebec $15,269* Saskatchewan $16,065 Yukon $11,809* Variable amount between $8,481 to $11,481 depending on taxable income* *indicates an increase from the 2018 federal and provincial personal tax credits. 1

2 Supplemental Tax Rates (Lump-Sum Tax Rates) Combine all lump-sum payments that have been paid or are expected to be paid in the calendar year when determining the composite rate to use. Federal and provincial or territorial composite rates are: Amount Rate Quebec Rate Up to and including $5,000 10% 5% Over $5,000 up to and including $15,000 20% 10% Over $15,000 30% 15% Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) Employees and employers are required to contribute to the C/QPP based on the employee s pensionable earnings, to an annual maximum amount set by the federal (for CPP) and Quebec (for QPP) governments. Annual Maximum Pensionable Earnings $57,400 (from $55,900 in 2018) Basic Exemption $3,500 Annual Maximum Contributory Earnings $53,900 (from $52,400 in 2018) Contribution Rate (Employee/Employer) 5.10% (from 4.95% in 2018) Annual Maximum Contribution (Employee/Employer) $2, (from $2, in 2018) Quebec Pension Plan (QPP) Annual Maximum pensionable earnings $57,400 (from $55,900 in 2018) Basic Exemption $3,500 Annual Maximum Contributory Earnings $53,900 (from $52,400 in 2018) Contribution Rate (Employee/Employer) 5.55% (from 5.40% in 2018) Annual Maximum contributions (Employee/Employer) $2, (from $2, in 2018) Employment Insurance (EI) Employment insurance premiums are deducted based on an employee s insurable earnings up to the maximum for the current year. 2

3 Employment Insurance (EI) all provinces except for Quebec Annual Maximum Insurable Earnings $53,100 (from $51,700 in 2018) Premium/Contribution Rate (Employee) 1.62% (from 1.66% in 2018) Annual Maximum Premium (Employee) $ (from $ in 2018) Premium Rate (Employer: 1.4* x Employee EI) 2.268% (from 2.324% in 2018) Annual Maximum Premium (Employer: 1.4* x Employee EI) *Unless a reduced premium rate applies $1, (from $1, in 2018) Quebec Employment Insurance (EI) Annual Maximum Insurable Earnings $53,100 (from $51,700 in 2018) Premium/Contribution Rate (Employee) 1.25% (from 1.30% in 2018) Annual Maximum Premium (Employee) $ (from $ in 2018) Premium Rate (Employer: 1.4* x Employee EI) 1.75% (from 1.82% in 2018) Annual Maximum Premium (Employer: 1.4* x Employee EI) *Unless a reduced premium rate applies $ (from $ in 2018) Quebec Parental Insurance Plan (QPIP) Annual Maximum Insurable Earnings $76,500 (from $74,000 in 2018) Premium/Contribution Rate (Employee) 0.526% (from 0.548% in 2018) Contribution Rate (Employer) 0.736% (from 0.767% in 2018) Annual Maximum Premium (Employee) $ (from $ in 2018) Annual Maximum Contribution (Employer) $ (from $ in 2018) *Unless a reduced premium rate applies Quebec Commission des normes du travail (CNT) Maximum earnings $76,500 (from $74,000 in 2018) Employer rate 0.07% (no change from 2018) 3

4 Health and Post-Secondary Education Tax Levy known as the Payroll Tax The Payroll Tax is an employer tax based on items reported in Box 14 of the T4 (e.g., salary, wages, bonuses, commission, tips, taxable benefits, allowances, etc.). British Columbia Medical Services Plan (MSP) Premium Rates Adjusted Net Income One Adult Two Adults in a Family $0 - $26,000 $0.00* $0.00* $26,001 - $28,000 $11.50* $23.00* $28,001 - $30,000 $17.50* $35.00* $30,001 - $34,000 $23.00* $46.00* $34,001 - $38,000 $28.00* $56.00* $38,001 - $42,000 $32.50* $65.00* Over $42,000 $37.50* $75.00* *No change from 2018 Manitoba Health and Post-Secondary Education Tax $1.25 million or less Exempt from tax* $1.25 $2.5 million 4.3% on the amount exceeding $1.25 million* Over $2.5 million 2.15% of the total payroll* *No change from 2018 Newfoundland and Labrador Health and Post-Secondary Education Tax $1.3 million or less (from $1.2 million in 2018) Exempt from tax Over $1.3 million 2% 4

5 Northwest Territories/Nunavut Payroll Tax Earnings less than $5,000 annually in the NWT and normally employed outside the province Earnings in excess of $5,000 Exempt from tax 2% total Annual Remunertation Ontario Employer Health Tax (EHT) Over $4 million* 1.95% *TriNet exceeds the $4 million limit Quebec Health Services Fund (QHSF) Rate based on total worldwide payroll while the amount payable is on total Quebec payroll. Primary and Manufacturing sectors* $1 million or less 1.45% (from 1.50% in 2018) $1 - $5 million Over $5 million 4.26% Other employers $1 million or less 1.95% (from 2.30% in 2018) $1 - $5 million Over $5 million 4.26% Contribution rate (%) = S where S = total payroll divided by $1,000,000 Contribution rate (%) = ( S) where S = total payroll divided by $1,000,000 *Where 50% of the total primary and manufacturing sector payroll is related to activities grouped under codes 11, 21, and 31 to 33 of the NAICS. Quebec Workforce Skills Development and Recognition Fund (WSDRF) All Quebec employers with payrolls greater than $2 million must contribute to this fund. The contribution is equal to the difference between 1% of total payroll and amount of eligible training expenditures. 5

6 Workers Compensation Maximum Assessable Earnings Note: Rates are provided only for the provinces in which there is a policy. Province/Territory Maximum Assessable/Insurable Earnings Alberta $98,700 (no change from 2017)* British Columbia $84,800 (from $82,700 in 2018) Manitoba $127,000 (no change from 2017) New Brunswick $64,800 (from $63,600 in 2018) Newfoundland/Labrador $65,600 (from $64,375 in 2018) Northwest Territories $92,400 (from $90,600 in 2018) Nova Scotia $60,900 (from $59,800 in 2018) Nunavut $92,400 (from $90,600 in 2018) Ontario $92,600 (from $90,300 in 2018) Prince Edward Island $55,000 (from $53,400 in 2018) Quebec $76,500 (from $74,000 in 2018) Saskatchewan $88,314 (from $82,627 in 2018) Yukon $89,145 (from $86,971 in 2018) *Alberta s Maximum Insurable Earnings cap has been removed on September 1, 2018 Retirement Savings Plans and Limits Plan Type Money Purchase RPP (combined employee and employer) Registered Retirement Savings Plans (RRSP) Defined Benefit RPP Deferred Profit-Sharing Plans (DPSP) (employer contributions) Yearly Maximum Pensionable Earnings (YMPE) Annual Contribution Limit Based on the lesser of $27,230 (from $26,500 in 2018) and 18% of an individual s employment income. Based on the lesser of 18% of the previous year s earned income and the maximum dollar limit of $27,230 (from $26,500 in 2018) less the pension adjustment (PA) and the past service pension adjustment (PSPA) plus pension adjustment reversals (PAR) and unused RRSP, PRPP or SPP contributions at the end of the previous year. The annual contribution limit for a Defined Benefit RPP is determined by an actuarial report for the particular pension plan. No specific dollar contribution limit is prescribed by the Income Tax Act. The defined benefit limit ($3, for 2019) limits the available benefits payable under these plans but not the contributions to these plans. Based on the lesser of $13,615 (from $13,250 in 2018) and 18% of an individual s employment income $57,400 (from $55,900 in 2018) 6

7 Tax-Free Savings Plans (TFSA) Canadians who are at least 18 years old can use a TFSA to save for any purpose that they like, including retirement. Contributions to TFSAs are not tax-deductible, but the earnings in the account (including interest, dividends and capital gains) grow tax-free. In addition, no tax is payable when individuals withdraw amounts from the account. The money can be withdrawn at any time. Annual TFSA contribution limit for 2019 is $6,000 (from $5,500 in 2018). Automobile Allowance Rates Anything in excess of the limits below would be considered taxable income. If you pay an employee an allowance based on a flat rate that is not related to the number of kilometers driven, it is a taxable benefit and must be included in the employee s income. Distance Driven Rate Per Kilometer First 5,000 kilometers 58 (from 55 in 2018)* After 5,000 kilometers 52 (from 49 in 2018)* *In the Northwest Territories, Yukon and Nunavut, there is an additional 4 per kilometer allowed for travel. Minimum Wage Rate Changes Provincial and territorial minimum wage rates change throughout the course of the year. The table below displays the current and 2018 changes to the minimum wage rate per jurisdiction for employees in select industries/duties. Not all industries/job duties are listed so ensure that you are paying the proper minimum wage for employees in your particular industry/performing particular job duties. Jurisdiction Canada Labour Code Hourly rate Aligned with provincial/territorial minimum wage in each jurisdiction Effective date (MM/DD/YR) 12/18/96 Alberta (General) $ /01/18 British Columbia (General) British Columbia (Employees serving alcohol on a licensed property) $12.65 $13.85 $14.10 $15.20 $11.40 $12.70 $13.95 $ /01/18 06/01/19 06/01/20 06/01/21 06/01/18 06/01/19 06/01/20 06/01/21 Manitoba $ /01/18 New Brunswick $ /01/18 Newfoundland and Labrador $ /01/18 7

8 Jurisdiction Hourly rate Effective date (MM/DD/YR) Northwest Territories $ /01/18 Nova Scotia (Experienced Workers) Nova Scotia (Inexperienced Workers) $11.00 $11.55 $10.50 $ /01/18 04/01/19 04/01/18 04/01/19 Nunavut $ /01/16 Ontario (General) $ /01/18 Ontario (Students under 18 who work 28 hours or less per week or if employed during a school holiday) Ontario (Employees serving alcohol for which a license or permit has been issued) $ /01/19 $ /01/19 Ontario (Homeworkers) $ /01/18 Prince Edward Island Quebec Quebec (Employees receiving tips) Quebec (Clothing industry) $11.55 $12.25 $12.00 $12.50 $9.80 $10.05 $11.25 $ /01/18 04/01/19 05/01/18 05/01/19 05/01/18 05/01/19 05/01/17 05/01/18 Saskatchewan $ /01/18 Yukon $ /01/18 Disclaimer Copyright 2019 TriNet. All rights reserved. All trademarks, trade names, service marks and logos referenced herein belong to their respective companies. The content of this white paper has been prepared for educational and information purposes only. The content does not provide legal advice or legal opinions on any specific matters. Transmission of this information is not intended to create, and receipt does not constitute, a lawyerclient relationship between TriNet, the author(s), or the publishers and you. You should not act or refrain from acting on any legal matter based on the content without seeking professional counsel. 8

TAX FACTS What s Inside. Quick Estimates. RRSP, RPP and DPSP Limits. Top Personal Rates for CPP, EI and QPIP Rates

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