Open navigation

2021 Source Deductions, Rates, and Payroll Changes

Below you’ll find all the 2021 rates, including all changes introduced with the 2021 July Tax Update.

  • CPP and QPP

  • EI, Quebec EI, Reduced EI Rates, and QPIP

  • Worker's Compensation

  • Pensionable Adjustment Limits

  • Federal TD1 Amounts

  • Provincial TD1 Basic Amounts

  • Provincial Minimum Wage

  • 2021 Taxable Income Thresholds and Tax Rates

Canada Pension Plan (CPP) & Québec Pension Plan (QPP)

Your CPP and QPP rates can be found in CPP/QPP Groups on the Avanti Desktop.

 

CPP

QPP

Maximum pensionable earnings

$61,600

$61,600

Annual basic exemption

$3,500

$3,500

Contribution earnings

$58,100

$58,100

Contribution rate

5.45%

5.90%

Maximum employee contribution

$3,166.45

$3,427.90

Maximum employer contribution

$3,166.45

$3,427.90

Employment Insurance (EI) & Québec Parental Insurance Plan (QPIP)

Your EI and QPIP rates can be found in EI Groups and QPIP Groups on the Avanti Desktop.

 

Federal EI

Quebec EI

QPIP

Annual maximum insurable earnings

$56,300

$56,300

$83,500

Premium/contribution employee rate (%)

1.58

1.18

0.494

Premium/contribution employer rate (%)

2.212

1.652

0.692

Annual maximum employee premium

$889.54

$664.34

$412.49

Annual maximum employer premium

$1,245.36

$930.06

$577.82

EI Premium Reduction Rates

An employer providing a Short-Term Disability (STD) plan may qualify for a lower EI premium rate than the general rate of 1.4 times the employee’s premium rate. Get more information on rate setting.  

If you qualify, you must update the Reduced EI Employer factor(s) in Avanti yourself.

Reduced EI Premium Rates

*Only for employers who have qualifying short term disability plans.

2021 Reduced EI Premium Rates Multiple

Category 1

Category 2

Category 3

Category 4

1.257

1.166

1.166

1.144

ESDC Reduced EI Premium Rates for 2021 (within Québec)

*Only for employers who have qualifying short term disability plans for employees in Québec.

2021 Reduced EI Premium Rates Multiple (within Québec)

Category 1

Category 2

Category 3

Category 4

1.215

1.095

1.098

1.069

Worker's Compensation (WCB, WSIB, & CSST)

Worker’s Compensation can be found in Worker’s Comp Groups on the Avanti Desktop. Be sure to update Avanti with your 2021 rates and maximum assessable earnings once you’ve Initialized Employee Totals.

Province/Territory

Maximum Assessable Earnings

British Columbia

$100,000

Alberta

$98,700

Saskatchewan

$91,100

Manitoba

$127,000

Ontario*

$97,308

Québec

$83,500 

New Brunswick

$67,100

Nova Scotia

$64,500

Prince Edward Island

$55,300

Newfoundland and Labrador

$67,985

Yukon

$91,930

Northwest Territories

$97,300

Nunavut

$97,300

*April 14, 2021, Ontario’s maximum assessable earnings for 2021 was reduced to $97,308. If you’ve already submitted a claim with earnings over $97,308, you can adjust the claim using WSIB Online Services.

Pension Adjustment Limits

Limit

Amount

Defined Contribution RPP's Money Purchase Annual Contribution limit

$29,210

Defined Benefit: Maximum Pension Adjustment

$28,610

RRSP annual contribution limit

$27,830

Year's Maximum Pensionable Earnings limit

$61,600

DPSP annual contribution limit (1/2 of MP limit)

$14,605

TFSA limit

$6,000

2021 Federal TD1

Your employee’s Provincial TD1 values can be found on the Tax Factors tab of the Employee Profile.

Federal TD1 (form)

2021

2020

Basic personal*

$13,808*

$12,298 or $13,229

Child amount

$2,295

$2,273

Age amount

$7,713

$7,637

Pension income amount

$2,000

$2,000

Disability amount

$8,662

$8,576

Spouse or common-law partner amount

$13,808*

$12,298

Amount for eligible dependent

$13,808*

$12,298

Caregiver amount or infirm amount for dependent 18+

$7,348

$7,276

*If the employee's taxable income from all sources for the year will be $151,978 or less. Employees with an income greater than $151,978 can complete TD1-WS Worksheet to calculate their partial claim.

2021 Provincial Basic Personal Amounts

Your employee’s Provincial TD1 values can be found on the Tax Factors tab of the Employee Profile.

Province/Territory

2021

2020

Alberta (form)

$19,369

$19,369

British Columbia (form)

$11,070

$10,949

Manitoba (form)

$9,936

$9,838

New Brunswick (form)

$10,564

$10,459

Newfoundland and Labrador (form)

$9,536

$9,498

Northwest Territories (form)

$15,243

$15,093

Nova Scotia (form)

$11,481*

$11,481

Nunavut (form)

$16,467

$16,304

Ontario (form)

$10,880

$10,783

Prince Edward Island (form)

$10,500

$10,000

Québec (EN) (FR)

$15,728

$15,532

Saskatchewan (form)

$16,225

$16,065

Yukon (form)

$13,808**

$12,298

*If the employee's taxable income from all sources for the year will be $25,000 or less. Employees in Nova Scotia with an income greater than $25,000 can complete TD1NS-WS Worksheet to calculate their partial claim.

**If the employee's taxable income from all sources for the year will be $151,978 or less. Employees in Yukon with an income greater than $151,978 can complete TD1YT-WS Worksheet to calculate their partial claim.

Provincial Minimum Wages

You can review the minimum wage in Provincial Tax on the Avanti Desktop.

Jurisdiction

Rate

Effective Date

Alberta

$15.00

October 1, 2018

BC

$15.20

June 1, 2021

Manitoba

$11.90

October 1, 2020

New Brunswick

$11.75

April 1, 2021

Newfoundland & Labrador

$12.50

April 1, 2021

Northwest Territories

$13.46

April 1, 2018

Nova Scotia

$12.95

April 1, 2021

Nunavut

$16.00

April 1, 2020

Ontario

$14.25

October 1, 2020

Prince Edward Island

$13.00

April 1, 2021

Québec

$13.50

May 1, 2021

Saskatchewan

$11.45

October 1, 2020

Yukon

$13.85

April 1, 2021

2021 Taxable Income Thresholds and Tax Rates

Once you’ve applied Avanti version 9.45, the following thresholds will automatically be applied for processing a pay with a 2021 payment date.

Federal

Alberta

Over

But Not Over

Rate

Over

But Not Over

Rate

0

49,020

15.0%

0

131,220

10%

49,020

98,040

20.5%

131,220

157,464

12%

98,040

151,978

26.0%

157,464

209,952

13%

151,978

216,511

29.0%

209,952

314,928

14%

216,511

Over

33.0%

314,928

Over

15%

Federal Indexing Factor for 2021 is 1.0%

No Indexing

British Columbia

Manitoba

Over

But Not Over

Rate

Over

But Not Over

Rate

0

42,184

5.06%

0

33,723

10.80%

42,184

84,369

7.70%

33,723

72,885

12.75%

84,369

96,866

10.50%

72,885

Over

17.40%

96,866

117,623

12.29%

Provincial Indexing factor for 2021 is 1.0%

117,623

159,483

14.70%

159,483

222,420

16.80%

222,420

Over

20.50%

Provincial Indexing factor for 2021 is 1.1%

New Brunswick

Newfoundland & Labrador

Over

But Not Over

Rate

Over

But Not Over

Rate


0


43,835

9.40%

9.12% Prorated


0


38,081


8.7%

43,835

87,671

14.82%

38,081

76,161

14.5%

87,671

142,534

16.52%

76,161

135,973

15.8%

142,534

162,383

17.84%

135,973

190,363

17.3%

162,383

Over

20.30%

190,363

Over

18.3%

Provincial Indexing factor for 2021 is 1.0%

Provincial Indexing factor for 2021 is 0.4%

Northwest Territories

Nova Scotia

Over

But Not Over

Rate

Over

But Not Over

Rate

0

44,396

5.90%

0

29,590

8.79%

44,396

88,796

8.60%

29,590

59,180

14.95%

88,796

144,362

12.20%

59,180

93,000

16.67%

144,362

Over

14.05%

93,000

150,000

17.50%

Provincial Indexing factor for 2021 is 1.0%

150,000

Over

21.00%

No Indexing

Nunavut

Ontario

Over

But Not Over

Rate

Over

But Not Over

Rate

0

46,740

4.0%

0

45,142

5.05%

46,740

93,480

7.0%

45,142

90,287

9.15%

93,480

151,978

9.0%

90,287

150,000

11.16%

151,978

Over

11.5%

150,000

220,000

12.16%

Provincial Indexing factor for 2021 is 1.0%

220,000

Over

13.16%

Provincial Indexing factor for 2021 is 0.9%

Prince Edward Island

Quebec

Over

But Not Over

Rate

Over

But Not Over

Rate

0

31,984

9.80%

0

45,105

15.00%

31,984

63,969

13.80%

45,105

90,200

20.00%

63,969

Over

16.70%

90,200

109,755

24.00%

No Indexing

109,755

Over

25.75%

Provincial Indexing factor for 2021 is 1.26%

Saskatchewan

Yukon

Over

But Not Over

Rate

Over

But Not Over

Rate

0

45,677

10.5%

0

49,020

6.4%

45,677

130,506

12.5%

49,020

98,040

9.0%

130,506

Over

14.5%

98,040

151,978

10.9%

Provincial Indexing factor for 2021 is 1.0%

151,978

500,000

12.8%

500,000

Over

15.0%

Provincial Indexing factor for 2021 is 1.0%

W
Will is the author of this solution article.

Did you find it helpful? Yes No

Send feedback
Sorry we couldn't be helpful. Help us improve this article with your feedback.