CRA announces maximum pensionable earnings for 2019
Employee, employer CPP contribution rates will be 5.1 per cent
11/01/2018|payroll-reporter.com|Last Updated: 11/12/2018
A sign is pictured in front of the Canada Revenue Agency (CRA) national headquarters in Ottawa, on March 13, 2017. REUTERS/Chris Wattie
The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2019 will be $57,400 — up from $55,900 in 2018.
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.
Contributors who earn more than $57,400 in 2019 are not permitted to make additional contributions to the CPP.
The basic exemption amount for 2019 remains $3,500.
The employee and employer contribution rates for 2019 will be 5.1 per cent — up from 4.95 per cent in 2018, and the self-employed contribution rate will be 10.2 per cent — up from 9.9 per cent in 2018. The increase in contribution rate is due to the CPP enhancement which will be implemented on Jan. 1, 2019.
The maximum employer and employee contribution to the plan for 2019 will be $2,748.90 each and the maximum self-employed contribution will be $5,497.80. The maximums in 2018 were $2,593.80 and $5,187.60.
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