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2021 Payroll Deductions for Manitoba

A new calendar year requires updates to your payroll deductions. Rather than searching various government web sites, review our summary below to update your payroll system for 2021. If you are looking for a complete and hassle-free payroll solution, try Payworks, a trusted CFIB partner. CFIB members receive an exclusive 40% discount.

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 $1.5 million exemption based on the total of their combined payroll.

  • $1.5 million or less: Exempt
  • $1.5 to $3.0 million: 4.3% on the amount in excess of $1.5 million (notch provision) 
  • Over $3.0 million: 2.15% of the total payroll (the $1.5 million is not exempt)
Employment Insurance (EI)

Maximum insurable earnings: $56,300

Maximum employee premium: $889.54

Maximum employer premium: $1,245.36

Employee rate: 1.58%

Employer rate: 1.58% x 1.4 = 2.21%

Some employees related to the employer may be exempt from paying EI premiums. Read our article to learn more.

There is no age limit for deducting EI premiums. Visit Employment insurance (EI) - Canada.ca and EI premium rates and maximums - Canada.ca.

Canada Pension Plan (CPP)

Maximum pensionable earnings: $61,600

Basic exemption: $3,500

Maximum employee premium: $3,166.45

Maximum employer premium: $3,166.45

Self-employed maximum premium: $6,332.90    

Employer and employee contribution rate: 5.45%

Self-employed contribution rate: 10.9%

CPP is deducted for employees between 18 and 69 years old, even if the employee is receiving a CPP pension. Exception: Don’t deduct CPP if the employee is between 65 and 70 and has completed Form CPT30.

Visit Canada Pension Plan (CPP) - Canada.ca and CPP contribution rates, maximums and exemptions - Canada.ca

Federal and Provincial income tax

Basic deduction (basic personal amount):

  • Federal: $13,808
  • Provincial: $9,936

For deductions based on different income levels, see:

Workers Compensation (WCB)

Maximum assessable earnings: $127,000 per worker

Based on classification codes 

Potential 15% rebate off premiums (or up to $3000 for small employers) with SAFE Work Certified via Industry-based Safety Program (IBSP).
 

Minimum wage

General minimum wage: As of October 1, 2020: $11.90/hour

Security Guard minimum wage: $12.50/hour 

Construction Industry minimum wages: Heavy Construction, Industrial, Commercial and Institutional (ICI) Construction