CRA introduced CPP2 an additional Canada Pension Plan (CPP) mandatory contribution starting in 2024
Beginning January 1, 2024 employers must deduct an additional CPP contribution on earnings above the annual pensionable earnings.
The additional contribution is for employees who earn higher wages.
Now there will be two contributions; first and second earning ceiling.
Second earning ceiling CPP rates for 2024 will be 4% on amounts over $68,500 to a maximum of $73,200.
First earning ceiling CPP rates for 2024 have increased from $63,100 to $65,000 after the $3,500 basic exemption with a 5.95% contribution rate.
Reminder that self employed individuals would have to contribute both employee and employer portions, making their contributions essentially double.