The Canada Revenue Agency (CRA) has announced that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2023 will be $66,600. The basic exemption amount for 2023 remains $3,500.
The employee and employer contribution rates for 2023 will be 5.95% (as compared to 5.70% in 2022).
As a result of the change in contribution rates and maximum pensionable earnings, the maximum employer and employee contribution to the plan for 2023 will be $3,754.45 each. The maximum self-employed contribution will be $7,508.90. The maximums in 2022 were $3,499.80 and $6,999.60 respectively.
The CRA announcement of the CPP contribution amounts for 2023 can be found on the Agency’s website at https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2022/canada-revenue-agency-announces-maximum-pensionable-earnings-2023.htm.
If you would like to know more about payroll deductions or need help with tax projections, please feel free to call us at (905) 305-9722 or email us at info@eigenmachtcrackower.com and we will help you out!
