Canada Revenue Agency Announces Maximum Pensionable Earnings for 2014
OTTAWA - The Canada Revenue Agency announced friday that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2014 will be $52,500-up from $51,100 in 2013. 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 $52,500 in 2014 are not required or permitted to make additional contributions to the CPP.
The basic exemption amount for 2014 remains $3,500.
The employee and employer contribution rates for 2014 will remain unchanged at 4.95%, and the self-employed contribution rate will remain unchanged at 9.9%.
The maximum employer and employee contributions to the plan for 2014 will be $2,425.50 each, and the maximum self-employed contribution will be $4,851.00. The maximums in 2013 were $2,356.20 and $4,712.40.