CPP rates increase for 2011 • Possible minimum wage increase in Nunavut • Reminder: No tax rate change in Alberta, Manitoba, Nova Scotia or P.E.I. • Reciprocal labour standards agreements allowed between Quebec and other provinces • QST rate increase
FEDERAL
CPP rates increase for 2011
The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2011 will increase slightly from 2010, while the basic exemption and contribution rates remain the same. The Canada Revenue Agency will raise the maximum pensionable earnings for CPP to $48,300 in 2011, up from $47,200 in 2010. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada. Individuals who earn more than $48,300 in 2011 are not required or permitted to make additional contributions to the CPP.
Rates and maximums:
•Maximum pensionable earnings:
2011: $48,300; 2010: $47,200
•Basic exemption: 2011: $3,500; 2010: $3,500
•Maximum contributory earnings:
2011: $44,800; 2010: $43,700
•Contribution rate (employee and employer): 2011: 4.95 per cent; 2010: 4.95 per cent
•Maximum employee contribution: 2011: $2,217.60; 2010: $2,163.15
•Maximum employer contribution: 2011: $2,217.60; 2010: $2,163.15
•Maximum self-employed contribution: 2011: $4,435.20; 2010: $4,326.30.
NUNAVUT
Possible minimum wage increase
The territorial government of Nunavut is proposing to amend its labour standards legislation to raise the minimum wage from $10 per hour to $11 per hour as of Jan. 1, 2011. Bill 45, An Act to Amend the Labour Standards Act (Minimum Wage), received first reading on Oct. 25, 2010. At press time, it has yet to be passed into law.
ALBERTA
Reminder: No tax rate change
The personal income tax rate in the province will remain 10 per cent on all taxable income for 2011. Please note although this is the rate that will apply as of Jan. 1, 2011, the 2011 provincial budget could propose changes. The budget is normally released in late winter/early spring.
MANITOBA
Reminder: No tax rate change
Effective Jan. 1, 2011, personal income tax rates in the province will remain unchanged at 10.8 per cent, 12.75 per cent and 17.4 per cent. No changes to the rate or exemption thresholds for the Health and Post-secondary Health and Education Tax Levy have been announced for 2011. Please note although these are the rates that will apply as of Jan. 1, 2011, the 2011 provincial budget could propose changes. The budget is normally released in late winter/early spring.
QUEBEC
Reciprocal labour standards agreements allowed between other provinces
Amendments to Quebec's labour standards legislation will provide greater protection to employees in other provinces when employers are headquartered in Quebec. Bill 111, which passed into law on Sept. 29, 2010, allows all provinces to enter into reciprocal agreements with Quebec. These agreements will allow the other provinces to enforce the payment of wages and other monies, as laid out in their employment standards, owed to local employees of Quebec-based organizations. This is the first time other provinces are able to develop reciprocal enforcement agreements with Quebec.
Reminder: QST rate increase
Effective Jan. 1, 2011, the Quebec Sales Tax (QST) rate will increase from 7.5 per cent to 8.5 per cent. As a result, the combined Goods and Services Tax (GST)/QST rate will increase from 12.87 per cent to 13.92 per cent as of Jan. 1, 2011. The prescribed rate employers use to calculate the QST on automobile operating expense benefits will increase from 4.7 per cent to 5.4 per cent, as of Jan. 1, 2011.
NOVA SCOTIA
Reminder: No tax rate change
Effective Jan. 1, 2011, the provincial personal income tax rates will remain unchanged at 8.79 per cent, 14.95 per cent, 16.67 per cent, 17.5 per cent and 24.50 per cent. Please note although these are the rates that will apply as of Jan. 1, 2011, the 2011 provincial budget could propose changes. The budget is usually released in the spring.
PRINCE EDWARD ISLAND
Reminder: No tax rate change
Effective Jan. 1, 2011, the provincial personal income tax rates will remain at 9.8 per cent, 13.8 per cent and 16.7 per cent. The provincial surtax will remain 10 per cent on basic provincial tax payable exceeding $12,500. Please note although these are the rates that will apply as of Jan. 1, 2011, the 2011 provincial budget could propose changes. At press time, no date had been announced for the budget.
Source: Canadian Payroll Manual, published by Carswell, a Thomson Reuters business.
