2023-2024 Employment Tax Changes

2023-2024 Employment Tax Changes Image


Canada Pension Plan Contributions - 2024

The 2024 Canada Pension Plan (CPP) contributions rate remains at 5.95% (same as previous year).  However, the Maximum Pensionable Earnings (MPE) will increase to $68,500 from $66,600 in 2023.  Also, new for 2024, there will be additional CPP contributions (CPP2) of 4% of earnings between $68,500 and $73,200.  Therefore, the combined MPE for 2024 will be $73,200 and the combined maximum CPP + CPP2 contributions will increase to $4,055.50 from $3,754.45 in 2023.


Employment Insurance Premiums - 2024

The 2024 Employment Insurance (EI) premium rate is set at 1.66% of insurable earnings for employees and 2.32% for employers who pay 1.4 times the employee rate, which has increased from 2023 rates of 1.63% and 2.28% respectively.


The Maximum Insurable Earnings (MIE) for 2024 will increase to $63,200 from $61,500 in 2023. The MIE is indexed on an annual basis and represents the ceiling up to which EI premiums are collected and the maximum amount considered in applications for EI benefits. The maximum annual EI contribution for a worker will increase by $46.67 to $1,049.12 (up $65.34 for employers to $1,468.77 per employee).

Ontario WSIB Premium Rates - 2024

The WSIB Maximum Insurable Earnings Ceiling for 2024 is $112,500, compared to $110,000 in 2023. Changes to the Maximum Insurable Earnings Ceiling are directly linked to changes in average earnings in Ontario as measured by Statistics Canada, and provisions under the Workplace Safety and Insurance Act.


Meal Allowance - 2023

The Canada Revenue Agency (CRA) has not increased the amount of meal allowance under the simplified method (flat rate per person).  It remains at $23 per meal since January 1, 2020. When claiming meal expenses on a personal income tax and benefit return, the CRA allows transport employees, and individuals claiming moving expenses, medical expenses, or the northern residents deduction, to calculate their meal expenses claim using the simplified method.


Ontario Minimum Wage Increase - Oct.1, 2023

The general minimum wage rates in Ontario increased on October 1, 2023.  The increase to the general minimum wage is $1.05, which brings the new rate up from $15.50 per hour to $16.55 per hour.


The student minimum wage increased from $14.60 per hour to $15.60 per hour.  This rate applies to students under the age of 18 who work 28 hours a week or less when school is in session, or work during a school break or summer holidays.


The liquor servers’ minimum wage rates are equal to the general minimum wage of $16.55 per hour.


The homeworkers minimum wage increased from $17.05 per hour to $18.20 per hour.  Homeworkers are employees who do paid work in their own homes. For example, they may sew clothes for a clothing manufacturer, answer telephone calls for a call centre, or write software for a high-tech company. Note that students of any age (including students under the age of 18 years) who are employed as homeworkers must be paid the homeworker’s minimum wage.


The above information is of a general nature only and should not be relied upon for specific situations.  Call Marlies Y Hendricks, CPA at 416-766-3941 or submit email enquiry form below to set up a consultation.

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