Personal tax rates unchanged by provinces • Provinces begin to release 2013 maximum accessible earnings • CRA announces maximum pensionable earnings
CANADA
CRA announces maximum pensionable earnings for 2013
The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2013 will be $51,100 — up from $50,100 in 2012, the Canada Revenue Agency announced.
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.
Contributors who earn more than $51,100 in 2013 are not required or permitted to make additional contributions to the CPP.
The basic exemption amount for 2013 remains at $3,500.
The employee and employer contribution rates for 2013 will remain unchanged at 4.95 per cent, and the self-employed contribution rate will remain unchanged at 9.9 per cent.
The maximum employer and employee contribution to the plan for 2013 will be $2,356.20, and the maximum self-employed contribution will be $4,712.40. The maximums in 2012 were $2,306.70 and $4,613.40.
Reminder: EI premiums going up
Beginning Jan. 1, premium rates for employment insurance (EI) will go up by five cents per $100 of insurable earnings. The maximum insurable earnings will increase from $45,900 to $47,400.
The Canada Employment Insurance Financing Board (CEIFB) is setting the employee EI premium rate at 1.88 per cent (1.83 per cent in 2012) and 1.52 per cent (1.47 per cent in 2012) for Quebec employees.
The employer EI premium rate is set at 2.632 per cent (2.562 per cent in 2012) and 2.128 per cent for Quebec employers (2.058 per cent in 2012). The maximum employee premium payment is set at $891.12 and $720.48 for Quebec employees. The maximum employer premium payment is $1,247.57 and $1,008.67 for Quebec employers.
The government has not yet announced the reduced EI premium rates for employers with HRSDC-approved wage-loss replacement plans.
Reminder: No federal tax rate changes
Effective Jan. 1, the federal personal income tax rates will remain: 15 per cent, 22 per cent, 26 per cent and 29 per cent. Due to the indexing of the income tax system, the income thresholds for each rate will be revised for next year.
BRITISH COLUMBIA
WorkSafeBC sets 2013 maximum assessable earnings
The maximum assessable earnings for workers’ compensation for 2013 will be $75,700, WorkSafeBC has announced. The maximum for 2012 is set at $73,700.
Reminder: No B.C. tax rate changes
The personal income tax rate in the province will remain at 5.06 per cent, 7.7 per cent, 10.5 per cent, 12.29 per cent and 14.7 per cent on all taxable income for 2013. Due to the indexing of the income tax system, the income thresholds for each rate will be revised for next year.
Reminder: MSP premiums rising
Effective Jan. 1, the government plans to increase Medical Services Plan (MSP) premium rates. For a single person, the maximum premium is expected to increase from $64 per month to $66.50. The maximum premium for a family of two is expected to increase from $116 per month to $120.50 and for a family of three or more it is expected to increase from $128.00 per month to $133.
ALBERTA
Alberta sets WCB maximum insurable earnings
Alberta’s workers’ compensation board has set its maximum insurable earnings for 2012 at $90,200. The 2012 ceiling in the province was $86,700
Reminder: No Alberta tax rate changes
The personal income tax rate in the province will remain at 10 per cent on all taxable income for 2013.
MANITOBA
Reminder: No Manitoba tax rate changes
Personal income tax rates in the province will remain unchanged in 2013 at 10.8 per cent, 12.75 per cent and 17.4 per cent.
NEW BRUNSWICK
Reminder: No N.B. tax rate changes
Personal income tax rates in the province will remain unchanged in 2013 at 9.1 per cent, 12.1 per cent, 12.4 per cent and 14.3 per cent. Due to the indexing of the income tax system, the income thresholds for each rate will be revised for next year.
NEWFOUNDLAND AND LABRADOR
Reminder: No tax rate changes in N.L.
Personal income tax rates in the province will remain unchanged in 2013 at 7.7 per cent, 12.5 per cent and 13.3 per cent.
Due to the indexing of the income tax system, the income thresholds for each rate will be revised for next year.
WHSCC sets 2013 maximum assessable earnings
The maximum assessable earnings for workers’ compensation for 2013 will be $ 54,155, the Workplace Health, Safety and Compensation Commission announced. The maximum is currently $52,885.
NOVA SCOTIA
Nova Scotia sets WCB maximum insurable earnings
The province’s compensation board has set its maximum insurable earnings for 2013 at $54,400. The 2012 ceiling in the province was $53,900.
Reminder: No N.S. tax rate changes
Personal income tax rates in the province will remain unchanged in 2013 at 8.79 per cent, 14.95 per cent, 16.67 per cent, 17.5 per cent and 21 per cent.
ONTARIO
Reminder: No Ontario tax rate changes
Personal income tax rates in the province will remain unchanged in 2013 at 5.05 per cent, 9.15 per cent, 11.15 per cent and 13.6 per cent.
Surtax rates will remain at 20 per cent and 36 per cent. Due to the indexing of the income tax system, the income thresholds for each rate will be revised for next year.
Reminder: WSIB coverage for construction mandatory in 2013
Beginning Jan. 1, workers’ compensation coverage will be mandatory for independent operators, sole proprietors, some partners in a partnership and some executive officers who work in the construction industry.
The change means that independent operators, executive officers and partners in a partnership working in construction who have no workers will be required to have WSIB coverage.
Affected individuals have until Dec. 31 to voluntarily pre-register with the WSIB. Premiums do not need to be paid until coverage begins.
PRINCE EDWARD ISLAND
PEI sets WCB maximum insurable earnings
The province’s compensation board has set its maximum insurable earnings for 2013 at $50,000. The 2012 ceiling in the province was $ 49,300.
Reminder: P.E.I. to move to HST
Prince Edward Island is proposing to combine its provincial retail sales tax with the federal goods and services tax (GST) to create a harmonized sales tax (HST), beginning April 1, 2013. The proposed tax rate would be 14 per cent.
Currently, P.E.I. sales tax is charged at 10 per cent, on top of the 5 per cent GST, bringing the total tax to 15.5 per cent.
The budget proposes that if the HST is implemented, the provincial portion of the tax would be reduced to 9 per cent, allowing for the HST rate to be 14 per cent.
The HST would apply to the same goods and services to which the GST now applies.
Reminder: No PEI tax rate changes
Personal income tax rates in the province will remain unchanged in 2013 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.
QUEBEC
Reminder: Quebec sales tax to be calculated without GST
Beginning Jan. 1, GST will no longer be included when calculating the amount of the province’s QST.
The change is due to an agreement between the federal and Quebec governments to further harmonize the goods and services tax/harmonized sales tax and the Quebec sales tax.
To ensure that the total tax to be paid does not change, the province plans to raise the rate of the QST from 9.5 per cent to 9.975 per cent as of Jan. 1, which is the current QST rate once the GST is included.
SASKATCHEWAN
Reminder: Saskatchewan minimum wage increasing Dec. 1
On Dec. 1, the minimum wage rate in the province increases from $9.50 per hour to $10 per hour.
Reminder: No Saskatchewan tax rate changes
Personal income tax rates in the province will remain unchanged in 2013 at 11 per cent, 13 per cent and 15 per cent. Surtax rates will remain at 20 per cent and 36 per cent.
Due to the indexing of the income tax system, the income thresholds for each rate will be revised for next year.
