Canada Pension Plan Contributions
As of 2024, there are two contribution levels for the Canada Pension Plan (CPP). Income amounts and employee contribution percentages for 2025 for each contribution level are as follows:
- First tier contributions for 2025 are set at 5.95% of pensionable earnings between $3,500 and $71,300.
- Second tier contributions for 2025 are set at 4.0% of pensionable earnings between $71,300 and $81,200.
The maximum employee CPP contribution in 2025 for employees making only first-tier contributions (those with pensionable earnings of $71,300 or less) will be $4034.10. Employees making second tier contributions will be required to contribute up to an additional $396.00 in contributions for the year.
Quebec Pension Plan Contributions
Similar to the Canada Pension Plan, there are two contribution levels for the Québec Pension Plan (QPP). Income amounts and employee contribution percentages for 2025 for each contribution level are as follows:
- First tier contributions for 2025 are set at 6.4% of pensionable earnings between $3,500 and $71,300.
- Second tier contributions for 2025 are set at 4.0% of pensionable earnings between $71,300 and $81,200.
The maximum employee QPP contribution in 2025 for employees making only first-tier contributions (those with pensionable earnings of $71,300 or less) will be $4,339.20. Employees making second tier contributions will be required to contribute up to an additional $396.00 in contributions for the year.
Employment Insurance Premiums
The Employment Insurance premium rate for 2025 is set at 1.64%.
Yearly maximum insurable earnings are increased to $65,700, making the maximum employee premium $1,077.48.
As in previous years, employer premiums are 1.4 times the employee premium. The maximum employer premium for 2025 is therefore $1,508.47.
If you would like help with dealing with the CRA or would like to know more about taxable benefits, please feel free to call us at (905) 305-9722 or email us at info@eigenmachtcrackower.com and we will help you out!
