Payroll taxes are set to surge next year as the pandemic economy’s dynamics amplify the costs for companies and their employees for the Canada Pension Plan and Employment Insurance.
Both contribution rates and maximum contributions will rise sharply for the CPP in 2021, according to recently released information. For EI, rates are frozen for the second year, but maximum contributions will jump.
The dual increases mean that employers face accelerating growth in the combined EI and CPP maximum contributions, which will hit $4,836.64 – an increase of 18 per cent in just two years.
