This first pay period of the year normally draws a lot of questions to the payroll department, mainly, “Why has my net pay changed”?

The reason could be because the start of the new year brings the beginning of Canada Pension Plan and Employment Insurance deductions that may have been maxed out in the pay period before. Each year CPP, EI and tax rates are determined by the Canada Revenue Agency and adjusted for the first pay period of the year, so if you are noticing a net pay fluctuation, this could be the reason.

View a chart of the new 2022 Federal and Provincial Rates, as well as the Local Authority Pension plan rates.

From Human Resources