2019 Canada Pension Plan (“CPP”) Contribution Rates
The CPP contribution rates and maximums for 2019 are as follows:
Maximum Pensionable Earnings $ 57,400.00
Annual Basic Exemption $ 3,500.00
Maximum Contributory Earnings $ 53,900.00
Contribution Rate 5.10 %
(Employee and Employer)
Maximum Employee Contribution $ 2,748.90
Maximum Employer Contribution $ 2,748.90
The Canada Revenue Agency (“CRA”) will gradually increase the contribution rates to 5.95%. The CPP rate will consist of the old 4.95% rate plus an extra rate called the “first additional contribution rate”.
The new contribution rates are:
YEAR EMPLOYEE RATE EMPLOYER RATE
2019 5.10% 5.10%
2020 5.25% 5.25%
2021 5.45% 5.45%
2022 5.70% 5.70%
2023 and later years 5.95% 5.95%
Commencing in 2024, the CRA will implement a new second additional contribution rate of 4% each for employers and employees or pensionable earnings between the yearly maximum pensionable earnings and a new upper limit.
Employees will continue to receive a non-refundable tax credit for the base contribution (4.95%). A tax deduction will be available for contributions at the additional rates. Employers will continue to receive a full deduction for all CPP contributions.
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