Payroll Deduction Tables - 2023

A new calendar year requires updates to your payroll deductions. To help you out, we have prepared a chart with both federal and provincial/territorial payroll deductions for 2023.

Deduction Rate
Employment Insurance (EI) Maximum insurable earnings: $61,500
Maximum employee premium: $1002.45
Maximum employer premium: $1403.43

Employee: 1.63%
Employer: 1.63 x 1.4 = 2.28%

Reduced rate for Quebec:
Maximum insurable earnings: $61,500
Maximum employee premium: $781.05
Maximum employer premium: $1,093.47

Employee: 1.27%
Employer: 1.27 x 1.4 = 1.78%

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

Canada Pension Plan (CPP) Maximum Pensionable Earnings: $66,600
Basic Exemption: $3,500
Maximum Employee Premium: $3,754.45
Maximum Employer Premium: $3,754.45

Self-employed Maximum Premium: $7508.90

Employee and employer contribution rate: 5.95%
Self-employed: 11.9%
Quebec Pension Plan (QPP) Maximum Insurable Earnings: $66,600
General Exemption: $3,500
Maximum Employee Premium: $4,038.40
Maximum Employer Premium: $4,038.40

Self-employed Maximum Premium: $8,076.80

Employee and Employer contribution rate: 6.4%

Self-employed: 12.8%
Federal Income Tax – Personal amount Basic Deduction: $15,000; but when net income is more than amount at which the 29% tax bracket begins, use the TD1-WS Worksheet to find basic deduction amount.

Alberta

Provincial income tax:

  • Basic personal deduction: $21,003

Workers’ Compensation:

  • Maximum assessable earnings: $69,800
  • Premiums are based on classification unit and industry

Minimum Wage:

  • Currently $15.00 per hour

British Columbia

Provincial Income Tax

  • Basic personal deduction: $11,981

Workers’ Compensation

Employer Health Tax

BC's Employer Health Tax is separate and distinct from remitting source deductions or MSP premiums.

Employers can be an individual, corporation or partnership. Associated employers are required to share any exemption amount they may qualify for. 

The EHT is based on remuneration paid to employees who report to work in BC and employees who do not report to work in BC but their wages are paid through a permanent establishment in BC.

How the tax works:

  • Total B.C. payroll of $500,000 or less: Exempt
  • $500,000 to $1.5 million: 2.925% on the amount in excess of $500,000 (notch provision)
  • Over $1.5 million: 1.95% of the total payroll (the $500,000 is not a deduction)

Use the employer health tax calculator to help you estimate the tax. You must register for the EHT if you must pay the tax. 

Minimum wage

  • As of June 1, 2022: $15.65 per hour

Saskatchewan

Provincial Income Tax

  • Basic Personal Exemption: $17,661

Workers’ Compensation

Minimum Wage

  • As of October 1, 2022: $13.00 per hour

Manitoba

Provincial Income Tax

  • Basic personal deduction: $10,855

Worker’s Compensation

Health and Post-Secondary Education Tax Levy (HE Levy)

Health and Post Secondary Education Tax Levy (HE Levy) – also known as the Manitoba Payroll Tax – is based on annual payroll paid by employers with permanent establishment in Manitoba.

Associated corporations/certain corporate partnerships share the $2.0million exemption based on the total of their combined payroll.

  • $2.0million or less: Exempt
  • $2.0 and $4.0 million: 4.3% on the amount in excess of $2.0million (notch provision)
  • Over $4.0million: 2.15% of the total payroll (the $2.0 million is not a deduction)

Minimum wage

  • As of October 1, 2022: $13.50 per hour

Ontario

Provincial Income Tax

  • Basic Personal Exemption: $11,865

Workers’ Compensation

Employer Health Tax

This is a tax paid by the employer and not deducted from employees

  • Exemption threshold: $1 million
  • Tax rate above the threshold is .98% to 1.95% depending on how much over the threshold the payroll is
  • More information available from the Ministry of Finance

Minimum Wage

  • As of October 1, 2022: $15.50 per hour
    • Student minimum wage $14.60 per hour


Quebec

Provincial Income Tax

  • Basic Personal Exemption: $17,183

Quebec Parental Insurance Plan (QPIP)

  • Maximum Insurable Earnings: $91,000
  • Maximum Employee premium: $449.54
  • Maximum Employer premium: $629.72
  • Self-employed Maximum Premium: to be announced

Health Services Fund

  • Based on payroll
  • Primary and manufacturing sectors
    • Less than $1 million: 1.25%
    • $1-$7.2 million: between 1.25% and 4.26%
    • More than $7.2 million: 4.26%
  • Other SMEs
    • Less than $1 million: 1.65%
    • $1-$7.2 million: between 1.65% and 4.26%
    • More than $7.2 million: 4.26%
  • More information from Revenu Quebec

Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST)

Contribution to the Workforce Skills Development and Recognition Fund (WSDRF)

  • Commonly known as the 1% Law
  • 1% of payroll if it is greater than $2 million

Contribution related to Labour Standards

  • Maximum insurable: $91,000
  • Employer rate: 0.06%
  • Some remunerations are not subject to this contribution, including employers who are federally regulated
  • More information from Revenu Quebec

Minimum Wage

  • As of May 1, 2022: $14.25 per hour

New Brunswick

Provincial Income Tax

  • Basic Personal Exemption: $12,458

Workers’ Compensation

Minimum Wage

  • As of October 1, 2022: $13.75 per hour

Newfoundland and Labrador

Provincial Income Tax

  • Basic personal exemption: $10,382

Workers Compensation

  • Maximum assessable earnings: $72,870
  • Based on classification
  • Want to reduce your WorkplaceNL bill? Read our information on PRIME

Health and Post-Secondary Education Tax (HAPSET)

  • Exemption threshold: $1.3 million
  • Payroll tax of 2% on payrolls above the exemption threshold
  • More information on the Department of Finance website

Minimum Wage

  • As of October 1, 2022: $13.70 per hour

Nova Scotia

Provincial Income Tax

  • Basic Personal Exemption: $11,481

Workers’ Compensation

Minimum Wage

  • As of October 1, 2022: $13.60 per hour

Prince Edward Island

Provincial Income Tax

  • Basic Personal Exemption: $12,000

Workers’ Compensation

Minimum Wage

  • As of April 1, 2022: $13.70 per hour

Northwest Territories

Territorial Income Tax

  • Basic Personal Exemption: $16,593

Workers’ Compensation

  • Maximum Assessable Earnings: $107,200

Minimum Wage

  • As of September 21, 2021: $15.20 per hour

Yukon

Territorial Income Tax

  • Basic Personal Exemption: $15,000

Workers’ Compensation

Minimum Wage

  • As of April 1, 2022: $15.70 per hour