- Country Information
- Canada
In this article...
Canada
- Employment Contracts
- Benefits Packages
- Introducing PEO in Canada
- What types of employment contract are there in Canada?
- What mandatory clauses must be included in a Canadian employment contract?
- How do you amend an employment contract in Canada?
- What makes a contract invalid in Canada?
- What are the minimum employee entitlements in Canada?
- What are the mandatory benefits in Canada?
- Is private health insurance available in Canada?
- Can employees receive stock options in Canada?
- Are there any other benefits available to employees in Canada?
- What is the minimum wage in Canada?
- What is the standard work week in Canada?
- What are the statutory public holidays in Canada?
- What are the overtime rules in Canada?
- What are the standard leave policies in Canada?
- Are alternative work arrangements possible in Canada?
- What is the required documentation for onboarding in Canada?
- How do you register an employee in Canada?
- What are the contract signing requirements in Canada?
- Can companies implement their own onboarding in Canada?
- What rules concern the base salary in Canada?
- How are bonuses and commissions handled in Canada?
- How are allowances handled in Canada?
- How is individual income tax handled in Canada?
- What are some other payroll considerations in Canada?
- How are expenses handled in Canada?
- Who makes the decision to terminate an employment contract in Canada?
- What is the procedure to terminate an employment contract in Canada?
How is individual income tax handled in Canada?
In Canada, employers must withhold mandatory income tax from employee pay. Federal income tax varies based on an employee’s income level. Additional provincial tax may be owed.
The federal income tax on annual gross salary in Canada is as follows:
- Up to 48,535 CAD (USD 38,915): 15%
- 48,535-97,069 CAD (USD 38,915-77,829): 20.5%
- 97,069-150,473 CAD (USD 77,829-120,648): 26%
- 150,473-214,368 CAD (USD 120,648-171,879): 29%
- 214,368 CAD+ (USD 171,879+): 33%
If you have questions about payroll regulations and procedures in Canada, please get in touch with our team today!
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