Statutory Deductions

Employee and Employer contributions to Employment Insurance (EI) and Canada Pension Plan (CPP) are based on all eligible earnings and commences January 1 each year.

For CPP and EI there are yearly maximum contribution amounts and once these are reached during the calendar year the contributions will cease. Contributions to CPP and EI will commence again January 1 of the following year.

With very few exceptions contributions to the Canada Pension Plan commence the month following the attainment of 18 years of age. At age 70, contributions will cease even though employment may continue. If you are in receipt of your CPP retirement pension, employment can continue without affecting your pension payment. CPP deductions continue for employees age 60 to under age 65. For employees age 65 and under age 70, CPP deductions continue unless an election not to continue to contribute (a completed and signed CPT30 - Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election Form) is sent to Payroll and Benefit Services.

Deduction Rates - Canada Pension Plan (CPP), Employment Insurance (EI), Workers Compensation (WCB)

The following deduction rates are applicable for all employees working at the University of Alberta. All income we pay to employees is subject to statutory deductions and appropriate rates as defined by the Canada Revenue Agency (CRA). The rates below are applicable for the first pay period of earnings that is paid in the corresponding taxation year.

It is mandatory that the University of Alberta cover all employees for Workers Compensation Coverage which mitigates risk should a workplace injury occur at any time.

For Canada Pension Plan (CPP) and Employment Insurance (EI) there are yearly maximum contribution amounts, once these maximums are reached during the taxation year the contributions will cease. Contributions to CPP and EI will commence each new tax year.

All employees must contribute to the CPP and EI plans however the following situations will exempt an employee from contributing to the CPP plan:

  • Under the age of 18. CPP commences the month following the employees 18 birthday
  • At age 70. CPP contributions will cease even though employment may continue
  • If the employee has completed a CPT30 - Election to Stop Contributing to CPP and the signed form is sent to Payroll & Benefit Services.

Canada Pension Plan (CPP)

2020
Year's Maximum Pensionable Earnings $58,700
Contribution Rate 5.25%
Maximum Contribution (Employee) $2,898
Maximum Contribution (Employer) $2,898

Employment Insurance (EI)

2020
Maximum Annual Insurable Earnings $54,200
Regular EI Rates
2020
Premium Rate (Employee) 1.58%
Premium Rate (Employer)(1.4 x Employee) 2.212%
Annual Maximum Premium (Employee) $856.36
Annual Maximum Premium (Employer, 1.4 x Employee) $1,198.90
Reduced EI Rates - Employer

Applies to U of A benefited employees

2020
Premium Rate (Employee) 1.58%
Premium Rate (Employer, 1.177 x Employee) 1.84702%
Annual Maximum Premium (Employee) $856.36
Annual Maximum Premium (Employer, 1.177 x Employee) $1,001.08

Workers Compensation (WCB) - Alberta

Employer Paid - once the yearly maximum amount is reached the WCB payment will cease

2020
Maximum Assessable Earnings $98,700
Contribution Rate 0.22%
Maximum Contribution $217.14