Why your net pay may be lower in January
Canada Pension Plan (CPP) and Employment Insurance (EI) deductions have yearly maximum contribution amounts. Once these limits are reached during the calendar year, the deductions stop for the rest of the calendar year. Contributions to CPP and EI will commence again in January of each year which will reduce net pay.
For more important information regarding your 2023 tax slips (T4/T4A) and what to expect for the 2024 calendar year, please visit: 2023 tax information and what to expect for the 2024 calendar year