CPP rates increase for 2011 • Possible minimum wage increase in Nunavut • Reminder: No tax rate change in Alberta, Manitoba, Nova Scotia or P.E.I. • Reciprocal labour standards agreements allowed between Quebec and other provinces • QST rate increase
FEDERAL
CPP rates increase for 2011
The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2011 will increase slightly from 2010, while the basic exemption and contribution rates remain the same. The Canada Revenue Agency will raise the maximum pensionable earnings for CPP to $48,300 in 2011, up from $47,200 in 2010. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada. Individuals who earn more than $48,300 in 2011 are not required or permitted to make additional contributions to the CPP.
Rates and maximums:
•Maximum pensionable earnings:
2011: $48,300; 2010: $47,200
•Basic exemption: 2011: $3,500; 2010: $3,500
•Maximum contributory earnings:
2011: $44,800; 2010: $43,700
•Contribution rate (employee and employer): 2011: 4.95 per cent; 2010: 4.95 per cent
•Maximum employee contribution: 2011: $2,217.60; 2010: $2,163.15
•Maximum employer contribution: 2011: $2,217.60; 2010: $2,163.15
•Maximum self-employed contribution: 2011: $4,435.20; 2010: $4,326.30.
