The first pay of a new year often sparks some questions from employees. We've put together a list of the most commonly asked questions as a resource for payroll managers to share with their teams.
1. Why is my paycheque less in January than it was in December?
Check your December 2020 pay statement to see if you maxed out on your CPP and EI contributions in 2020. Remember that CPP and EI restart every January.
Additionally, CPP, QPP, EI, and QPIP have increased, which means more will be taken off each paycheque. The new employee annual maximum contributions for 2021 are:
Québec EI: $664.34
2. Why is my vacation, sick, PTO balance reset to zero?
Vacation is moved into the previous year’s accrual bank. Sick time and PTO are restarted every January with new balances.
3. I want to contribute to my RRSP in the first 60 days of the new year; what is the RRSP annual contribution limit for 2020?
The maximum RRSP annual contribution limit for 2021 is $27,830.
4. How much am I allowed to put into my TFSA during 2021?
The TFSA limit for 2021 is $6,000.
5. Will the minimum wage be changing in 2021, and if so, when and by how much?
6. Why do I need to complete new TD1s each year?
A new TD1 ensures that you inform us of any changes in your life that could impact your income tax calculations. This could include having a new dependent, becoming a caregiver, or recently enrolling in school. Completing a new TD1 ensures your taxes will be calculated accurately at the source, your pay.
7. How do I prevent the additional tax from coming off my cheque this year?
When you complete your new Federal TD1, leave the Additional Tax to be deducted box blank, and Payroll will not deduct additional tax from your pay.