By Molly Ward
Nov. 1—The maximum pensionable earnings under the Canada Pension Plan (CPP) is to increase to C$55,300 ($41,298) from C$54,900 ($40,999), while contributions rates are to remain unchanged for 2017, the Canada Revenue Agency said Nov. 1 in an announcement.
The increased ceiling amount was calculated using a formula that takes into account the growth in average weekly wages and salaries in Canada, the agency said.
Individuals who earn more than C$55,300 in 2017 cannot make additional contributions to the CPP. The basic exemption amount for 2017 remains C$3,500 ($2,614).
Contribution rates will remain unchained at 4.95 percent. The maximum amount that employers or employees can contribute to the CPP for 2017 will be C$2,564.10 ($1,915) each, an increase from C$2,544.30 ($1,900) in 2016.
The CPP applies to all provinces and territories in Canada except Quebec, where the Quebec Pension Plan (QPP) provides similar benefits.
To contact the reporter on this story: Molly Ward at mWard@bna.com
To contact the editor on this story: Michael Baer at firstname.lastname@example.org
The announcement can be found at http://news.gc.ca/web/article-en.do?mthd=index&crtr.page=1&nid=1145789.
More information on payroll issues in Canada can be found in the Canada country primer.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
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