You may be aware that Federal Government decided to change the Federal Tax, CPP and EI. Following chart will show the major differences:
How do these changes impact on your paycheck?
If you earn $61,600 or above in 2020 you contributed $2,898 for CPP whereas you need to contribute $3,166.45 in 2021. Therefore, annually your paycheck will be reduced by $268.45! However, if you are self-employed, your contribution will be increased by $536.90.
If you earn $56,300 or above in 2020 you contributed $856.36 for EI and you have to contribute $889.54 in 2021. Therefore, annually your paycheck will be reduced by $33.18 extra EI contribution!
Disclaimer: This article is written by the author, a Payroll Expert, based on the government data for informative purposes. No organization is responsible for the accuracy or calculation except the author./*99586587347*//*54745756836*/
