The CPP/QPP maximum pensionable earnings figure will be $46,300 for 2009. This is up 3.1% from $44,900 in 2008. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.
Individual contributors who earn more than $46,300 in 2009 are not required or permitted to make additional contributions to the CPP/QPP.
The basic exemption of $3,500 remains unchanged for 2009. Therefore, maximum contributory earnings are $42,800. Individuals who earn less than that amount do not need to contribute to the CPP/QPP.
The employee and employer contribution rates for 2009 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 plan for 2009 will be $2,118.60 and the maximum self-employed contribution will be $4,237.20. The maximums in 2008 were $2,049.30 and $4,098.60, respectively.
Revenu Quebec has also announced that the 2009 figures will be the same under the Quebec Pension Plan (“QPP”).
TurboTax Premium has the Pension Income Splitting Optimizer built in
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{ 2 comments }
Hi there,
I’ve got a question about EI Insurable Earnings… Why is it different from Employment Income? Is it because it deducts various employee benefits?
So would it be accurate to say that if a company ONLY paid a wage and no other benefits that the EI insurable earnings would be the exact same as the employment income?
Thank you in advance!
EI is based on actual employment and does not include some taxabale benefits.
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