Canada Pension Plan and Employment Insurance Maximums for 2016

Every year we like to keep you posted on changes to EI and CPP, which you’ll need to be aware of when filing your income tax return, as well as when making CPP contributions if you are self-employed.

Here are the amended CPP and EI figures you’ll need to be aware of:

• CPP maximum pensionable earnings has increased to $54,900 for 2016 compared to $53,600 in 2015.  You can contribute up to $2,544.30 to CPP in 2016.
• EI maximum insurable earnings has increased to $50,800 for 2016 compared to $49,500 in 2015.  You can contribute up to $955.04 to EI in 2016.
• This means that once your earnings reach $54,900 you no longer contribure any further into the CPP for that year ($50,800 applies to EI).
• Remember that if you’re self employed, you have to contribute two times the CPP as both the employee and the employer.

You can also click here to find more information on EI and CPP at the official Canada Revenue Agency website.

If you have any questions about making Canada Pension Plan or Employment insurance contributions, or wish to speak to an accountant about preparing and filing your income tax return, please contact us. We’re here to help!