2017 Canada Revenue Agency (CRA) Various Maximums and Rates

It’s a new year which triggers changes to the CRA maximums and rates on various items. Please note the following:

 

Canada Pension Plan (CPP)

  • maximum pensionable earnings are $55,300;
  • maximum employee contribution for the year is $2,564.10;
  • maximum employer contribution for the year is $2,564.10;
  • maximum self-employed contribution for the year is $5,128.20;

 

Employment Insurance (EI)

  • maximum insurable earnings are $51,300;
  • maximum employee contribution for the year is $836.19;
  • maximum employer contribution for the year is $1,170.67.

 

Registered Retirement Savings Plan (RRSP)

  • maximum pensionable earnings are $144,500;
  • maximum contribution limit for the year is $26,010.

 

Tax Free Savings Account (TFSA)

  • maximum contribution limit for the year is $5,500.

 

Reasonable Auto Allowance Rates

  • $.54 per kilometer for the first 5,000 kilometers driven; and
  • $.48 per kilometer driven after that.

 

In the Northwest Territories, Yukon and Nunavut, there is an additional $.04 per kilometer for travel.  If you pay your employee an allowance based on a per-kilometer rate that the CRA considers reasonable, you do not have to deduct CPP contributions, EI premiums or income tax.

Please contact your trusted advisors at S+C Partners if you have any questions.