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Gifts and awards as taxable employment benefits
November 12, 2019
Tax Updates
February 18, 2020

Canada Pension Plan Contributions (CPP)

The maximum pensionable earnings under the Canada Pension Plan for 2020 are $58,700, up from $57,400 in 2019. Contributors who earn more than $58,700 in 2020 aren’t required to make additional contributions to the CPP. The basic exemption amount for 2019 remains at $3,500.

Employee and employer CPP contribution rates for 2020 is 5.25%, up from 5.1% in 2019.

The self-employed contribution rate is 10.5%, up from 10.2% in 2019.

The maximum employer and employee contributions to the CPP for 2020 are $2,898 each.

The maximum self-employed contribution is $5,796.

Employment Insurance (EI)

The Maximum Insurable Earnings for 2020 increased to $54,200 from $53,100 in 2019.

The maximum annual EI contribution for a worker decreased by $3.86 to $856.36 (down $5.41 for employers to $1,198.90 per employee).

The 2020 EI premium rate is $1.58 per $100 of insurable earnings – a decrease of 4 cents for employees compared to the 2019 rate ($1.62), and a decrease of 6 cents to $2.21 for employers who pay 1.4 times the employee rate.

 

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