Changes to CPP rates and maximum in 2015

The maximum pensionable earnings under the Canada Pension Plan (CPP) will increase $1,100 to $53,600 in 2015 from $52,500 in 2014. The Canada Pension Plan (CPP) rate (4.95%) and exemption ($3,500) remains the same in 2015. The maximum employee and employer contribution to the pan for 2015 will be $2,479.95 – up from $2,425.50 in…

Changes to CPP rates and maximum in 2014

The Canada Pension Plan (CPP) rate and exemption remains the same in 2014. But the maximum pensionable earnings increase $1,400 to $52,500 in 2014 from $51,100. As a result, the employees who earn $52,500 or more will have to make $69.30 more in CPP contribution compared to 2013. Employers will also see their CPP expenses…

Changes to CPP rates and maximum

The maximum pensionable earnings under the Canada Pension Plan (CPP) will increase $1,300 to $54,900 in 2016 from $53,600 in 2015. The Canada Pension Plan (CPP) rate (4.95%) and exemption ($3,500) remains the same in 2015. The maximum employee and employer contribution to the pan for 2016 will be $2,544.30 – up from $2,479.95 in…

Home Buyers’ Plan (HBP)

Home buyers’ plan (HBP) is a government program which allows you to borrow funds from your registered retirement savings plan (RRSP) tax free to buy or build your home. 

Can I opt out of EI program for self-employed?

You can cancel your registration within 60 days without paying any premiums. After 60 days, you can cancel it any time if you don’t make any claim. But the cancellation will be effective at the end of the calendar year, so you have to pay EI premiums for the entire calendar year.

Terminal loss

A terminal occurs if, at the end of a fiscal year, when all assets in a class have been disposed of but a undepreciated Capital Cost (UCC) balance still remains in the pool.

Retiring allowance

Retiring allowance, also called severance pay, is an amount you receive on or after retirement from an office or employment in recognition of long service.

Earned income for RRSP purpose

Earned income is used to calculate your RRSP deduction limit. It generally includes: employment earnings net business income  net rental income taxable support (alimony) payments received, disability benefits received from Canada Pension Plan (CPP) or Quebec Pension Plan (QPP).  The above income increases your RRSP deduction limit.