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What is deducted from the salary?

Canada Pension Plan (CPP) contributions

If you are 18 years old or older, but younger than 65, you are employed in pensionable employment, and you do not receive a CPP retirement or disability pension, your employer will deduct CPP contributions from your pay.

If you are at least 65 years of age but under 70 and you work while receiving a CPP or QPP retirement pension, your employer will continue to deduct CPP contributions from your pay, unless you elect to stop paying CPP contributions. You cannot elect to stop contributing to the CPP until you are at least 65 years of age


Employment Insurance (EI) premium

If you are employed in insurable employment your employer will deduct EI premiums from your pay. There is no age limit for deducting EI premiums.

EI provides you with temporary financial assistance while unemployed and looking for work or if you're upgrading your skills. You may receive EI assistance in the following situations:

  • sickness;

  • pregnancy;

  • caring for a newborn or adopted child; or

  • caring for a seriously ill family member with a significant risk of death.

Income tax deducted

If you receive employment income or any other type of income, your employer or payer will deduct income tax at source from the amount paid.

Your employer or payer will calculate how much income tax to deduct by referring to your total claim amount on Form TD1, Personal Tax Credits Return and using approved calculation methods

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