Employers in Ontario are required to deduct three main items from employee paychecks:

•Canada Pension Plan (CPP): Contributions to the CPP provide income during retirement or if the employee becomes disabled. For 2024, the rate is 5.95% of the employee’s income up to a maximum yearly contribution.

•Employment Insurance (EI): EI provides temporary income support for employees who are unemployed or on parental leave. The employee EI rate for 2024 is 1.63% of insurable earnings.

•Income Tax: This is deducted based on federal and provincial tax rates and depends on the employee’s total earnings and personal tax credits.

Employers must remit these deductions, along with their own CPP and EI contributions, to the Canada Revenue Agency (CRA) on a monthly or quarterly basis.