On November 2, 2015, Canada Revenue Agency (CRA) announced that the maximum pensionable earnings under the Canada Pension Plan (CPP) will increase on January 1, 2016 from $53,600 to $54,900.
What does that mean to you?
First, this means that if you are earning $54,900 or more in 2016, CPP contributions for employees and employers will increase to $2,544.30. If you are self-employed – which means you’re paying both sides – this means that your annual CPP contribution will now be $5,088.60.
Second, if you are self-employed or a business owner, and plan your annual wages around the CPP, plan to increase your salary to $54,900 annually ($4,575 monthly) starting January 1st.
Have questions about CPP, income planning and more? Contact us at firstname.lastname@example.org