2016-12-30 00:00:00 Finance and Accounting English Review the importance of keeping up to date on changes to source deduction thresholds and rates. Learn how changes may affect employers. https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/Accounting-Professional-Analyzing-Computer-Data.jpg Review Changes to Source Deductions Thresholds Annually

Review Changes to Source Deductions Thresholds Annually

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The government of Canada revises income thresholds and limits related to source deductions on an annual basis. To ensure you are withholding the right amount of source deductions from your employees and that you are contributing the correct amount to the Canada Revenue Agency, review these changes annually on the CRA’s website. Ideally, you should look at the changes in the fall of each year so that you can budget for payroll expenses in the upcoming year.

For example, as of 2017, the maximum amount of annual insurable earnings increased to $51,300. The previous year, in 2016, you only had to remit Employment Insurance premiums on the first $50,800 of each employee’s salary. However, in 2017, the rate decreased – and as a result, the maximum employer premium per employee also decreased.

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Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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