Main Menu
Home
About Us
Where We Are
Podcasts RSS *NEW*
General Tips
Investments
Debts
Budgeting
New / Used
Business
CRA
Wills & Estates
Real Estate
Search
Contact Us
Guest Book
Site Map
Disclaimer
Login
TLA
Tax Deadline
Count to
May 2, 2016, 11:59 pm
Time left
0 days
0 hours
0 minutes
Links
CRA
Credit / Debt
Investments
Mortgage Info
Tax Tips
Referrals
Miscelaneous
Visitors
1055631 This week.
Personal Blogs - BlogCatalog Blog Directory


2010 CPP & EI

ImageUpdated with 2010 rates! This applies to you if you have a regular job with a salary over about $40,000 per year. We all have to pay CPP and EI, these are deducted at source by your payroll. Both CPP and EI have a maximum annual amount, and that payroll does not spread out the amount throughout the year. The net effect is your take home pay is less at the start of the year, until you reach your maximums.

In 2010, CPP employee contribution rate remains unchanged at 4.95%, and the maximum annual pensionable earnings has gone up from $46,300 to $47,200. If you work it out, with the basic exemption, you have to pay $2,163.15 CPP in 2010. That is an increase of $44.55 or 2% from last year (last year it went up 3%).

For EI, the maximum annual insurable earnings is changing from $42,300 to $43,200 and the EI rate remains unchanged at 1.73% for 2009. If you calculate that, you will need to pay a maximum of $747 for EI in 2010. 

Image

In the above table, you can see that for an income of $50,000 annually, you have reached your maximum at 10.5 months. It was 10.3 months in 2009, so things are continuing to get worse. For some of November and December you get an extra $278 in your pay - just in time for holiday spending or topping up your RRSP.

The more you earn, the sooner you reach your maximum CPP + EI. At a salary of $100,000 you get an extra $557 per month from June through to December. Even more to put into your RRSP...

An excel file of the calculations is found here

Image
For 2010 CPP info, check here, for 2010 EI info check here

Pat

P.S. Thanks to the folks who left the comment/correction!

 
< Prev   Next >
   Home arrow CRA arrow 2010 CPP & EI