Canadian Tax Adviser, November 10, 2015. The CRA announced recently that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2016 will increase to $54,900 (from $53,600). As a result, the maximum employee CPP contribution for 2016 will increase to $2,544.30 (from $2,479.95).
The basic exemption amount for CPP for 2016 remains at $3,500. Individuals who earn less than that amount do not need to contribute to the CPP.
The employee and employer contribution rates for 2016 will remain unchanged at 4.95%, and the self-employed contribution rate will remain unchanged at 9.9%.
The maximum employer and employee contribution to the CPP for 2016 will increase to $2,544.30 (from $2,479.95) and the maximum self-employed contribution will increase to $5,088.60 (from $4,959.90). The rates for 2015 and 2016 are as follows:
|Maximum pensionable earnings||$53,600.00||$54,900.00|
|Basic exemption amount||$3,500.00||$3,500.00|
|Employee/employer contribution rate||4.95%||4.95%|
|Self-employed contribution rate||9.90%||9.90%|
|Maximum employee/employer annual contribution||$2,479.95||$2,544.30|
|Maximum self-employed contribution rate||$4,959.90||$5,088.60|
For more information, contact your KPMG adviser.
Information is current to November 10, 2015. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500