Payroll Tax Increases: Less – and More – Than Meet the Eye

Federal payroll taxes are increasing this year.  Maximum Employment Insurance premiums rise from $787 in 2011 to $840 in 2012, while maximum Canada Pension Plan contributions go from $2,218 in 2011 to $2,307 in 2012.

But Canada’s income tax system, with its federal and provincial/territorial regimes, provides non-refundable tax credits that lessen the burden of federal payroll taxes by a significant degree – ranging from one-fifth (19 percent in Nunavut) to one-quarter (26 percent in Saskatchewan).

ISBN – 1-55382-554-3