It's year-end - everyone's favourite time of the year! To help your new year and year-end go smoothly, we've compiled a list of all the payroll components changing in 2024 and what you can do. As always, please reach out to support@paymentevolution.com with your questions.
CPP and QPP Changes
In 2024, the CPP enhancement will introduce a new, higher earnings limit, also known as the year’s additional maximum pensionable earnings.
There will also be different rates at which employees will pay CPP. They will pay 5.95% on the first $68,500 of pensionable earnings and then 4% on any amounts between $68,500 and $73,200. The changes to CPP will also affect the federal tax calculations.
You can read our CPP walkthrough here.
The same concepts that apply to CPP will apply to QPP. However, the contribution rate differs. Employees will pay 6.4% on the first $65,000 of pensionable earnings and then 4% on any amounts between $68,500 and $73,200. You can also read a full QPP walkthrough here.
Five Slip Rule
This year, you must file your T4 slips electronically if you submit more than five slips after Dec. 31, 2023. You can learn more about T4 submission here.
TD1 Changes
Each year, new TD1 exemptions apply. Typically, CRA will post the new forms with the TD1 rates you need, but as of writing, CRA hasn't posted these forms.
However, you can run our New Payroll Year Wizard to help you set your employees' rates.
Last, please note that any employees earning more than $173,205 should fill out the TD1-WS form.
Province of Employment
As of Jan. 1, 2024, the CRA is updating the definition of Province of Employment (PoE). Now, PoE will be determined by the employee's type of income, residency status, and where the employee reports for work.
You can determine your employee's PoE here.
Canada Dental Benefits
The CRA has introduced an interim dental benefit to reduce dental costs for families. We've broken down this new benefit here.
This will also mean a change to your T4 slips and T4A slips - boxes 45 and 15, respectively. You can read our walkthrough here.
Employment Insurance Rate Changes
The Federal EI premium rates and maximums are also changing. For 2024, the maximum annual insurable earnings are $63,200, and the rate is 1.66%. The maximum annual
employee premium is $1,049.12 and the maximum annual employer premium is $1,468.77.
You can read more about EI deductions here.