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 2021 pay statement to see if you maxed out on your CPP and EI contributions in 2021. 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 2022 are:
Québec EI: $723.60
3. How much am I allowed to put into my TFSA during 2022?
The TFSA limit for 2022 is $6,000.
4. 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.
5. 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.