Compliance Centre

 

Payroll Legislation Basics

Calendars and Important Dates

Canada Pension Plan (CPP) - Quebec Pension Plan (QPP)

Canada Pension Plan (CPP) is a national insurance program that provides income for Canadians when they retire or if they become disabled. The Quebec Pension Plan (QPP) fulfills the same role in that province.

Employers are required by law to deduct CPP/QPP contributions from their employees' pay and to provide a matching contribution when the employee is in pensionable employment during the year.

CPP contributions

Working Canadians (outside Quebec) between the ages of 18 and 70 must contribute to the CPP unless they receive a disability pension from the plan or are exempt for another reason. Start deducting CPP contributions with the first pay dated in the month after the employee turns 18 and stop deducting with the first pay in the month after the employee turns 70.

  • If an employee aged 65 or older files a CPT30 form with CRA and provides the employer with a copy, CPP contributions can stop before the employee turns 70. If a CPT30 form is not filed, CPP contributions continue until the month following the employee turns 70.
  • An employee can only stop or start their CPP contributions using a CPT30 once per calendar year. The same form is used to stop or restart contributions.

Prorated CPP maximum

The CPP maximum is prorated for employees turning 18 or 70 during the year based on their birthdate.

Second additional CPP contributions (CPP2)

In January 2024, CPP enhancements introduced a 4% second additional contribution on pensionable earnings. Pensionable earnings between the Year’s Maximum Pensionable Earnings (YMPE) and a second earnings ceiling, referred to as the Year’s Additional Maximum Pensionable Earnings (YAMPE), are subject to CPP2 contributions.

When to deduct CPP

Description Under 18 18 to 59 60 to 64 65 to 69 70 and over
If not disabled and not receiving CPP retirement pension N Y Y Y N
If considered disabled under CPP N
If in receipt of CPP retirement pension N/A N/A Y Y* N

*Unless the employee has filed a CPT30 election to stop CPP contributions with CRA and the employer.

QPP contributions

Working Canadians (in Quebec) between the ages of 18 and 72 must contribute to the QPP unless they receive a disability pension from the plan or are exempt for another reason. Start deducting QPP contributions with the first pay dated in the month after the employee turns 18 and stop deducting by December 31 of the year the employee turns 72.

  • If an employee aged 65 or older files a RR–50-V form with Revenu Québec and provides the employer with a copy, QPP contributions can stop before December 31 of the year the employee turns 72.

  • QPP contributions cannot be deducted after December 31 of the year the employee turns 72.

  • An employee can only stop or start their QPP contributions using a RR-50-V once per calendar year. The same form is used to stop or restart contributions.

Prorated QPP maximum

The QPP maximum is prorated for employees turning 18 during the year based on their birthdate.

Second additional QPP contributions (QPP2)

In January 2024, QPP enhancements introduced a 4% second additional contribution on pensionable earnings. Pensionable earnings between the Year’s Maximum Pensionable Earnings (YMPE) and a second earnings ceiling, referred to as the Year’s Additional Maximum Pensionable Earnings (YAMPE), are subject to QPP2 contributions.

When to deduct QPP

Description Under 18 18 to 59 60 to 64 65 to 721 January of the year the employee turns 73
If not disabled and not receiving QPP retirement pension N Y Y Y N
If considered disabled under QPP N
If in receipt of QPP retirement pension N/A N/A Y Y2 N
If in receipt of QPP disability pension and QPP retirement pension N N Y3 N N

1 Employees who are 72 as of December 31 stop contributing to QPP as of January 1 of the new year. Employees who are 72 as of January 1 continue to contribute to QPP for the full year.

2 Unless the employee has filed a RR-50-V election to stop QPP contributions with Revenue Quebec and the employer.

3 Effective January 1, 2024 employees who are 60 or older and receive both a QPP disability pension and QPP retirement pension must make QPP contributions unless they opt out at age 65.

  2025
  CPP QPP
Minimum Age and Maximum Age 18 and 70

18 to January of the year the employee turns 73
Annual maximum pensionable earnings $71,300 $71,300
Annual basic exemption $3,500 $3,500
Annual maximum contributory earnings $67,800 $67,800
Employee / Employer contribution rate 5.95% 6.40%
Annual maximum employee / employer contribution $4,034.10 $4,339.20
Annual additional maximum pensionable earnings $81,200 $81,200
Employee / Employer contribution rate 4% 4%
Annual additional maximum employee / employer contribution $396 $396

In January 2024, CPP and QPP enhancements introduce a 4% second additional contribution on pensionable earnings between $68,500 and $73,200. More information can be found at CPP and QPP.

2025 CPP/QPP Basic Exemption

By Payroll Frequency
Annual $3,500
Weekly $67.30
Bi-weekly $134.61
Semi-monthly $145.83
Monthly $291.66
10 periods $350.00
27 pays $129.62
53 pays $66.03

Employment Insurance (EI) - Quebec Parental Insurance Plan (QPIP)

Employment Insurance (EI) provides temporary income support for unemployed Canadians who cannot work for reasons of sickness, childbirth, or parenting; or who are providing care or support to a family member who is gravely ill with a significant risk of death.

  • EI also provides temporary financial assistance for unemployed Canadians while they look for work or upgrade their skills.
  • Employers must deduct EI premiums from each dollar of their employees’ insurable earnings up to the yearly maximum. Most earnings in Canada are insurable. There is no age limit for deducting EI premiums.
  • Employers are also required to contribute at a rate 1.4 times the EI premium withheld for each employee (unless eligible for a reduced rate).

The province of Quebec manages the maternity, parental, and adoption benefits for residents of Quebec under the Quebec Parental Insurance Plan (QPIP). All employers who have employees working in Quebec, regardless of the employee’s province or territory of residence, have to deduct a reduced employment insurance (EI) premium using a reduced EI premium rate as well as QPIP premiums.

  • Both employers and employees must contribute to the Québec parental insurance plan (QPIP) in order to provide for the payment of benefits to employees who take unpaid maternity, paternity, adoption or parental leave.
  • QPIP premiums must be paid regardless of the employee's age, the employee's place of residence (in general) and whether or not the employee receives benefits under the plan.
  2025
  EI Quebec EI QPIP
Annual maximum insurable earnings $65,700 $65,700 $98,000
Employee contribution rate 1.64% 1.31% 0.494%
Annual maximum employee contribution $1,077.48 $860.67 $484.12
Annual maximum employer contribution $1,508.47 $1,204.94 $678.16
Employer contribution rate 2.296% 1.834% 0.692%

Federal/Provincial - Personal Tax Credits Forms

Canada levies a personal income tax on income earned. The amount any individual must pay is based on their taxable income (income earned less allowed expenses) for the tax year.

  • As an employer or payer, you are responsible for deducting income tax from the remuneration or other income you pay.
  • There is no age limit for deducting income tax and there is no employer contribution required.
TD1 Basic Tax Credit Amounts 2025
Federal $16,129
Alberta $22,323
British Columbia $12,932
Manitoba $15,969
New Brunswick $13,396
Newfoundland and Labrador $11,067
Northwest Territories $17,842
Nova Scotia $11,744
Nunavut $19,274
Ontario $12,747
Prince Edward Island $14,250
Quebec $18,571
Saskatchewan $18,991
Yukon $16,129

Lump Sum Tax Rates

Lump Sum Payments

Tax Withholding Under $5,000 $5,001 - $15,000 Over $15,000
Federal/Provincial Tax (outside Quebec) 10% 20% 30%
Federal Tax - Quebec 5% 10% 15%
Provincial Tax - Quebec 14% 19% 19%

Employment Standards, Minimum Wage, Workers Compensation, Garnishment/Support

The information provided in the following section provides a table of links to Employment/Labour Standards, WCB and Family Support agencies for each applicable jurisdiction. Employers should always check with the appropriate authority for the most current information.

All Canadian employers must meet or exceed minimum standards relating to minimum wage, overtime pay, maternity/parental leave, vacation pay, statutory holidays and terminations. Specific legislative requirements vary between provinces and territories.

2025 Canadian Provincial General Minimum Wage Chart

Each province and territory administers the workers' compensation system within its jurisdiction. This no-fault insurance system is funded by employer-paid premiums. It ensures that employers share collective liability for work related injuries and illnesses, and injured workers receive a full range of benefits such as wage replacement, healthcare treatments and rehabilitation services.

Links to information on family support orders are included in this section as a resource. Dayforce suggests employers consult legal counsel if an order is unclear.

WCB Maximum Assessable Earnings by Province/Territory

For a list of the earnings that are taken into consideration when determining the amount an employer is assessed on (by jurisdiction), please refer to the Association of Workers’ Compensation Boards of Canada website.

Province Filing Deadline 2025 WCB Maximum Assessable Earnings
BC Last day of February (Quarterly), March 1-15 (annually) $121,500
AB February 28 $106,400
SK February 28 $104,531
MB February 28 $167,050
ON Last day of March $117,000
QC Before March 15 $98,000
NB February 28 $84,200
NS March 31 $76,300
PE February 28 $82,900
NL February 28 $79,345
YT Last day of February $104,975
NT February 28 $112,600
NU February 28 $113,900

Payroll Tax and Guides

The following section provides links to payroll tax information for each jurisdiction.

Federal Resources

Quebec Resources

Payroll and HR Associations

The information on this web page is provided by Dayforce Canada Ltd. as a convenience to you. Dayforce does not warrant the accuracy or completeness of the information. Contents may be subject to change. Always check your circumstances with the proper authority for the most accurate and current information available.