Just a heads up that the maximum contribution limits for the Canada pension plan (CPP) have new values for 2011.
CPP maximum pensionable earning and maximum contribution amount
In 2011 the maximum pensionable earnings will be increasing to $48,300 (up from $47,200). What this amount means is that you will contribute to the CPP based on a percentage of your earnings up to $48,300. Any money earned over $48,300 will not have any CPP deduction applied to it.
The basic exemption amount is $3500 which means that you only make CPP contributions based as a percentage on any income above $3500.
The percentage charged for CPP contributions will be 4.95% for employees and their employers (they both pay 4.95%).
This 4.95% applies to any income earned above $3500 and below $48,300.
The maximum for the year will be $2,217.60 which will apply to anyone making $48,300 or more. This amount is 4.95% of ($48,300 – $3500).
Self-employed persons have to pay both the employee and employer contributions so their CPP rate will be 9.9% and the maximum contribution for someone earning $48,300 or more will be $4,435.20.
Here are the EI premiums for 2011.