What are the payroll tax rates changes for 2017 for withholdings?Payroll tax rates change every year and it is important for you to know the correct rates when preparing payroll remittances.
Please visit our payroll tax post for more figures and for updated rates for 2017 with 2016 comparison. Or read the entire chart below.
Discussion:
| Canada Pension Plan | 2016 | 2017 |
| Annual maximum pensionable earnings | $54,900 | $55,300 |
| Annual basic exemption | $3,500 | $3,500 |
| Contribution rate | 4.95% | 4.95% |
| Annual maximum employee contribution | $2,544.30 | $2,564.10 |
| Annual maximum employer contribution | $2,544.30 | $2,564.10 |
| Employment Insurance | 2016 | 2017 |
| Annual maximum insurable earnings | $50,800 | $51,300 |
| Annual maximum employee contribution | $955.04 | $836.19 |
| Employee contribution rate | 1.88% | 1.63% |
| Employer contribution rate | 2.63% | 2.28% |
| Federal Tax Credits | 2016 | 2017 |
| Basic personal | $11,474 | $11,635 |
| Spouse/Equivalent to spouse | $11,474 | $11,635 |
| B.C. Provincial Tax Credits | 2016 | 2017 |
| Basic personal | $10,027 | $10,208 |
| Spouse/Equivalent to spouse | $8,586 | $8,740 |
Grant has been in the CA business since 1988, starting his own practice in 1994. His tax expertise encompasses tax planning, international tax issues, and Scientific Research and Development tax credits. He is a graduate of the CICA In-Depth Tax Course and in 2012, Grant received the CA Community Service Award and the Scout Leader Medal.
1 comment on “Canada Tax FAQs – Payroll Tax Rates For 2017”
I have a friend that is going to invest in a Canadian corp. He is a US citizen residing in the US. Most likely will do it through a US LLC. Is there any better way to set it up through any other type of entity? Want to do what is best for liability and tax issues. Any advice is most appreciated.
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