Review Changes to Source Deductions Thresholds Annually

By QuickBooks Canada Team

0 min read

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.

References & Resources

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.

Related Articles

How to Address a Bad Review

Bad reviews can harm any business, but they can be especially detrimental…

Read more

8 Things You Need to Know If You Want to Start a Wind Farm in Canada

Harnessing the wind can provide clean, affordable energy for people living in…

Read more

Key Business Tools for Independent Contractors

Independent contractors have a lot of freedom when it comes to deciding…

Read more