Students in grade 4/5 at Sister Mary Phillips learned about treaties, the government, and residential schools durin… https://t.co/MpkC7FuNf1
CPP & EI Deductions
Canada Pension Plan (CPP) and Employment Insurance (EI)
These programs are run by the federal government and participation is mandatory. You may benefit in the future by receiving payments from these programs. For example, EI protects workers who become unemployed by paying out benefits to those who apply and qualify. If you retire after age 60, the CPP pays benefits to seniors who qualify.
In addition to the amounts that are deducted and withheld from your pay, your employer also makes contributions to EI and CPP on your behalf. The amount depends on how much you contribute.
Why is my net pay in January less than December of the previous calendar year?
There may be a number of reasons as to why your net pay may be decreased in January of a new taxation year. Most likely, this decrease is because employee and employer contributions to Employment Insurance (EI) and Canada Pension Plan (CPP) are based on all eligible earnings beginning with the first pay each January and contributions cease during the calendar year once the maximum contributions are reached. For those employees who earned more than the CPP and EI ceilings, the maximum contributions would probably have been reached prior to the December pay period.
The contributions for CPP and EI will cease during the new taxation year once the annual maximum is reached again. This will therefore increase the net pay.
Get In Touch
Fort McMurray Catholic Board of Education
9809 Main St.
Fort McMurray, AB, T9H 1T7
Phone: 780-799-5700 Fax: 780-799-5706