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Upcoming payroll changes for 2024

Rate changes for CPP, new tax forms

December 18, 2023 — 

Payroll Services has announced that changes are coming to several payroll items for 2024. Please visit the payroll site on the UM Intranet for more details. Please note that you must be logged in with your email address to access the Intranet.

CPP/EI Rate change

Employee Employment Insurance (EI) contribution rates will be increased to 1.66% in 2024 from 1.63% in 2023. The maximum contribution in 2024 is $ $1,049.12.

Canada Pension Plan (CPP) contribution rates will remain at 5.95% in 2024. The maximum contribution in 2024 is $3,867.50. See the next section for details about the CPP enhancement, which will affect employees whose earnings are higher than the year’s maximum pensionable earnings (YMPE).

Please note, CPP/EI deductions stop whenever an individual reaches the maximum contribution for any given year. Employees who reached the maximum contribution to their CPP/EI during the 2023 tax year will notice a difference in their net pay between December 2023 and January 2024, when CPP/EI deductions restart.

CPP Enhancement

CPP enhancements announced by the Government of Canada in 2019 will reach a second phase in 2024, when a second earnings ceiling will be introduced.

Employees whose earnings are higher than the YMPE will be subject to additional deductions at 4% for the earnings between the YMPE and the second earnings ceiling, the year’s additional maximum pensionable earnings (YAMPE).

The YMPE for 2024 is $68,500 and the YAMPE for 2024 is $73,200. The maximum contribution in 2024 for this new bracket is $188. Employer’s contributions will also reflect the CPP enhancement.

The new bracket for CPP enhancement contribution will be in effect starting Jan. 1, 2024.

For more details, please visit the Government of Canada website.

New TD1/TD1MB/TD1NU Forms

The Government of Canada and Province of Manitoba review TD1 amounts annually and the newest version of the forms will be available on our web page once it is published.

Anyone who has previously claimed an amount other than the basic personal amount or has annual net income over $173,205 should review and complete a new form for 2024. Completed forms can be sent to Payroll Services at payroll [at] umanitoba [dot] ca.

If you have any questions, please reach out to Helen Wong, Manager, Payroll Services at helen [dot] wong [at] umanitoba [dot] ca.

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