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.