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Canada Revenue Agency: 2 Big Changes Coming to Your 2021 Paycheck

Image source: Getty Images Did you get your first paycheck for 2021? The deductions might seem higher. This is because the Canada Revenue Agency (CRA) has increased the paycheck deductions for 2021. Two of the biggest changes that your paycheck must have witnessed are a rise in Employment Insurance (EI) premiums and your contribution towards the Canada Pension Plan (CPP). What are these paycheck deductions? Let us learn about these deductions in detail. Every year the Canada Employment Insurance Commission (CEIC) and Service Canada revise the EI premiums and CPP rates. They also decide on which income bracket will the new rates apply. When changing the rates and income bracket, the agencies take into account the rise in the average weekly income of Canadians.

CRA: 3 Huge Changes Coming in Your Paycheck in 2021

Canada Revenue Agency: Big Changes Coming in Your Paycheck in 2021

Canada Revenue Agency: Big Changes Coming in Your Paycheck in 2021 More on: Image source: Getty Images This year was not something anyone expected. The new year brings new hopes and new uncertainties. While no one can say what 2021 has in store, one thing the Canada Revenue Agency (CRA) has clarified is the changes coming in your paycheck. The CRA can’t determine your paycheck, but it can determine the deductions on your paycheck. The CRA requires your employer to deduct three things from your taxable salary: an employee’s contribution towards the Canada Pension Plan (CPP), Employment Insurance (EI) premiums, and income tax.

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