What is deducted from a paycheque in Canada?
Three main deductions: Canada Pension Plan (CPP) at 5.95% of pensionable earnings between $3,500 and ~$68,500; Employment Insurance (EI) at 1.66% up to ~$63,200 of insurable earnings; and federal plus provincial income tax withheld according to your income and TD1 claims.
How much CPP does an employee pay?
For the current year, employees contribute 5.95% of pensionable earnings between the $3,500 basic exemption and the $68,500 yearly maximum, for a maximum around $3,867. Employers match this amount. A second additional CPP tier applies to earnings above the first ceiling.
What is the maximum EI premium?
Employees pay 1.66% of insurable earnings up to the annual maximum insurable earnings (~$63,200), capping the premium around $1,049 for the year. Employers pay 1.4 times the employee premium. Quebec has separate QPIP rates.
Why is tax withheld more than my actual tax?
Withholding is an estimate based on your pay period annualized. Deductions, credits, and other income can change your final tax. If too much was withheld you receive a refund; if too little, you owe a balance when you file.