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Payroll Tax Rates for 2020

March 5, 2020

Tax Question:

What are the payroll tax rate changes for 2020 for withholdings?


Payroll tax rates change every year and it is important for you to know the correct rates when preparing payroll remittances. See below for updated rates for 2020 with 2019 comparison.


Canada Pension Plan20192020
Annual maximum pensionable earnings$57,400$58,700
Annual basic exemption$3,500$3,500
Contribution rate5.10%5.25%
Annual maximum employee contribution$2,748.90$2,898.00
Annual maximum employer contribution$2,748.90$2,898.00
Employment Insurance20192020
Annual maximum insurable earnings$53,100$54,200
Employee contribution rate1.62%1.58%
Annual maximum employee contribution$860.22$856.36
Annual maximum employer contribution$1,204.31$1,198.90
Federal Tax Credits20192020
Basic personal$12,069$12,298 or $13,229
Spouse/Equivalent to spouse$12,069$12,298 or $13,229
B.C. Provincial Tax Credits20192020
Basic personal$10,682$10,949
Spouse/Equivalent to spouse$9,147$9,376

If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.

Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.

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