The government of Canada revises income thresholds and limits related to source deductions on an annual basis. To ensure you are withholding the right amount of source deductions from your employees and that you are contributing the correct amount to the Canada Revenue Agency, review these changes annually on the CRA’s website. Ideally, you should look at the changes in the fall of each year so that you can budget for payroll expenses in the upcoming year.
For example, as of 2017, the maximum amount of annual insurable earnings increased to $51,300. The previous year, in 2016, you only had to remit Employment Insurance premiums on the first $50,800 of each employee’s salary. However, in 2017, the rate decreased – and as a result, the maximum employer premium per employee also decreased.