2022 Payroll Deductions for British Columbia

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 2022. 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.

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:

  • $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. 

Employment Insurance (EI)

Maximum insurable earnings: $60,300

Maximum employee premium: $952.74

Maximum employer premium: $1,333.84

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: $64,900

Basic exemption: $3,500

Maximum employee premium: $3,499.80

Maximum employer premium: $3,499.80

Self-employed maximum premium: $6,999.60    

Employer and employee contribution rate: 5.7%

Self-employed contribution rate: 11.4%

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: $14,398; but when net income is more than $155,625 use TD1-WS 2022 Worksheet to find basic deduction amount
  • Provincial: $11,302

For deductions based on different income levels, see:

Workers Compensation (SafeWorkBC)

Maximum assessable earnings: For 2022, it is $108,400 per worker

Premiums are based on classification unit and industry

Minimum wage

As of June 1, 2021 BC's general minimum wage is $15.20/hour.

Employees who serve liquor also receive $15.20/hour minimum wage.