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2020 Payroll Deduction Table for Prince Edward Island

The new year has started which means making updates to payroll deductions. To help you out, we’ve prepared a summary chart including all the 2020 rates for CPP, EI, taxes and more.

Deduction

Rate

Employment Insurance

Maximum insurable earnings: $54,200
Maximum employee premium: $856.36
Maximum employer premium: $1,198.90 

 

Employee: 1.58
Employer: 1.58 x 1.4 = 2.21%

Some employees related to the employer may be exempt from paying Employment insurance – please read our article to learn more.

CPP

Maximum pensionable earnings: $58,700
Basic exemption: $3,500
Maximum employee premium: $2,898.00
Maximum employer premium: $2,898.00

Self-employed maximum premium: $5,796.00

Employer and employee contribution rate: 5.25%

Self-employed: 10.5%

Federal & Provincial income tax

 

Basic deduction:

• Federal: $12,298
• Provincial: $10,000

Worker's Compensation

Maximum insurable: $55,300 per person

Based on classification

Information on the employer surplus is available.

Minimum wage

As of April 1, 2019: $12.25

As of April 1, 2020: $12.85

 

If you have questions about payroll deductions please contact Business Resources at 1 888 234-2232 or [email protected]