November 06, 2012
Edmonton, Canadian Corporate Tax
Waterloo, Canadian Corporate Tax
The CRA announced that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2013 will increase to $51,100 (from $50,100). Taxpayers who earn more than $51,100 in 2013 are not permitted to make additional contributions to the CPP. As a result, the maximum employee CPP contribution for 2013 will increase to $2,356.20 (from $2,306.70), representing an increase of about 2% over 2012.
Other CPP changes for 2012
The basic exemption amount for 2013 remains $3,500. Individuals who earn less than that amount do not need to contribute to the CPP.
The employee and employer contribution rates for 2013 will remain unchanged at 4.95%, and the self-employed contribution rate will remain unchanged at 9.9%.
The maximum employer and employee contribution to the plan for 2013 will increase to $2,356.20 (from $2,306.70) and the maximum self-employed contribution will increase to $4,712.40 (from $4,613.40). The rates for 2013 and 2012 are as follows:
For more information, contact your KPMG adviser.
Information is current to November 6, 2012. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG’s National Tax Centre at 416.777.8500.