The Canadian Taxpayers Federation (CTF) has crunched the numbers and Ontario taxpayers will keep less of their paycheques in 2014, as EI and Canadian Pension Plan taxes both go up.
In its annual New Year’s Tax Changes report, the CTF has calculated maximum employee EI taxes will go up $23 in 2014 to $914, while the employer’s share of EI payroll tax goes up $31 to $1,279. That means a working couple who each earn at least $48,600 in 2014, will have $4,386 in EI payroll taxes sent to Ottawa on their behalf.
The federal government expects to collect $4.2 billion more in EI taxes in 2014 than they pay out in benefits. Other forecasts peg the EI tax windfall to the government much higher, the CTF states.
“If governments wanted to solve and address the CPP shortfall, they should look no further than reforming EI to create an Employment Insurance Savings Account,” said CTF Ontario director Candice Malcolm.
The maximum employee Canada Pension Plan payroll tax rises $70 to $2,426 for employees earning at least $52,500 a year. Employers match employees’ CPP payroll taxes dollar for dollar, pushing the total CPP payroll tax haul to $4,856.
“Premier Wynne continues to call for CPP premium hikes, and seems unaware that premiums are already increasing,” said Malcolm. “In fact, CPP taxes have been steadily rising and grown by almost 50 per cent over the past two decades.”
Visit http://www.taxpayer.com/media/2014_New_Years_Tax_Changes_Backgrounder.pdf
