Description: With Canadians already facing a squeeze from rising prices, 2022 promises some additional trouble with the news that payroll burdens will rise. Both the rate and the yearly maximum contribution will be increasing for the Canada Pension Plan (CPP). And while Employment Insurance (EI) rate will not jump in 2022, the overall maximum contribution will increase, further cutting into the take-home pay of Canadians. Given that EI rates have been frozen during the pandemic, and with an uptake in benefits given layoffs during these past 20 months, the EI program has a deficit close to $35 billion, indicating we have not seen the end of rate increases.
Date: November 12, 2021
1) Have you ever noticed how much of your paycheque goes to contributions to CPP and EI?
2) The article speaks about a coming review of the EI program by the Government of Canada. What changes do you think should be made in the program?
3) Starting on page 10-6 in Wiley’s Financial Accounting: Tools for Business Decision-Making, we read about the various payroll deductions, like EI and CPP. What is alternative terminology for these deductions?