CRA sets 2017 maximum pensionable earnings

The Canada Revenue Agency announced today that the maximum pensionable earnings under the Canada Pension Plan for 2017 will be $55,300, up from $54,900 in 2016–the new ceiling was calculated using a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.

Additional information

• Contributors who earn more than $55,300 in 2017 are not required or permitted to make additional contributions to the CPP.
• The basic exemption amount for 2017 remains $3,500.
• The employee and employer contribution rates for 2017 will also remain unchanged at 4.95%. The self-employed contribution rate will remain unchanged at 9.9%.
• The maximum employer and employee contribution to the CPP for 2017 will be $2,564.10 each. The maximum self-employed contribution will be $5,128.20. The maximums in 2016 were $2,544.30 and $5,088.60, respectively.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.