Manitoba's Strategic Advantages: People and the Workforce

Employment Insurance and Canada Pension Plan



Employment Insurance

All employees are required to pay employment insurance premiums based on earnings to a maximum insurable earnings level, provided they meet minimum earnings levels. Employers are required to make contributions based on the employees’ premiums. Deductions and employer contributions are remitted to the government monthly. For 2021 the rates are:

Employee Premium Rate: 1.58%
Employer Premium Rate: 1.4 times employee premium
Maximum Annual Insurable earnings: $56,300
Maximum Annual Employee Premium: $889.54
Maximum Annual Employer Premium: $1,245.36


Source: Canada Revenue Agency
Information last accessed on April 8, 2021

 

Canada Pension Plan

All employees are required to contribute to the Canada Pension Plan (CPP) to an annual maximum. The employer must match this contribution. For 2021, the basic criteria are:

Employee and Employer Contribution Rate 5.45%
Maximum Annual Pensionable Earnings $61,600.00
Basic Exemption Amount $3,500.00
Maximum Earnings on which Contributions are based $58,100.00
Maximum Annual Employee and Employer Contribution $3,166.45
Maximum Annual Self-Employed Contribution $6,332.90


Deductions are made from each pay cheque at the prescribed rate throughout the year or until such time as the maximum has been reached. Normally, tables provided by the government are used to determine the amount to be deducted; deductions can, of course, be calculated. Deductions and employer contributions are remitted to the government monthly.

Source: Canada Revenue Agency
Information last accessed on April 8, 2021

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