Legislative roundup: Changes in payroll laws and regulations from across Canada

CPP rates increase for 2011 • Possible minimum wage increase in Nunavut • Reminder: No tax rate change in Alberta, Manitoba, Nova Scotia or P.E.I. • Reciprocal labour standards agreements allowed between Quebec and other provinces • QST rate increase
|Canadian Payroll Reporter|Last Updated: 12/01/2010

FEDERAL

CPP rates increase for 2011

The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2011 will increase slightly from 2010, while the basic exemption and contribution rates remain the same. The Canada Revenue Agency will raise the maximum pensionable earnings for CPP to $48,300 in 2011, up from $47,200 in 2010. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada. Individuals who earn more than $48,300 in 2011 are not required or permitted to make additional contributions to the CPP.

Rates and maximums:
•Maximum pensionable earnings:
2011: $48,300; 2010: $47,200
•Basic exemption: 2011: $3,500; 2010: $3,500
•Maximum contributory earnings:
2011: $44,800; 2010: $43,700
•Contribution rate (employee and employer): 2011: 4.95 per cent; 2010: 4.95 per cent
•Maximum employee contribution: 2011: $2,217.60; 2010: $2,163.15
•Maximum employer contribution: 2011: $2,217.60; 2010: $2,163.15
•Maximum self-employed contribution: 2011: $4,435.20; 2010: $4,326.30.

NUNAVUT

Possible minimum wage increase

The territorial government of Nunavut is proposing to amend its labour standards legislation to raise the minimum wage from $10 per hour to $11 per hour as of Jan. 1, 2011. Bill 45, An Act to Amend the Labour Standards Act (Minimum Wage), received first reading on Oct. 25, 2010. At press time, it has yet to be passed into law.

ALBERTA

Reminder: No tax rate change

The personal income tax rate in the province will remain 10 per cent on all taxable income for 2011. Please note although this is the rate that will apply as of Jan. 1, 2011, the 2011 provincial budget could propose changes. The budget is normally released in late winter/early spring.

MANITOBA

Reminder: No tax rate change

Effective Jan. 1, 2011, personal income tax rates in the province will remain unchanged at 10.8 per cent, 12.75 per cent and 17.4 per cent. No changes to the rate or exemption thresholds for the Health and Post-secondary Health and Education Tax Levy have been announced for 2011. Please note although these are the rates that will apply as of Jan. 1, 2011, the 2011 provincial budget could propose changes. The budget is normally released in late winter/early spring.