Changes to CPP/EI effective January 1st, 2012by Elite Accounting on 01/03/12
CPP Maximum 2012 | CPP Rates for the Year 2012
The maximum CPP contribution to the plan for 2012 will be increased by $89.10 to $2,306.70, representing an increase of about 4% over the last year and the maximum self-employed CPP contribution for 2012 will be $4,613.40. The CPP maximums for the Year 2011 were $2,217.60 and $4,435.20. The CPP Rates, effective January 1, 2012, forecast to remain unchanged at 4.95% of pensionable earnings. The basic exemption amount for 2012 expects to remain $3,500. Individuals who earn less than that amount do not need to contribute to the CPP.
EI Maximum 2012 | EI Rates for the Year 2012
Your rate of EI premiums (excluding employees working in the province of Quebec), for the 2012 taxation year forecasts to remain at 1.73% of insurable earnings. The annual maximum insurable earnings will be increasing from $44,200 to $45,900. The maximum EI contribution to the plan for 2012 will be $839.97. The EI maximum for the Year 2011 was 786.76. Once you reach the annual maximum premium deduction of your EI maximum in 2012, you will see an increase in the amount of your net pay as there will no longer be EI deductions withheld from your pay.