As of January 1st 2016 the Canadian Government will be implementing a new Canada Pension Plan (CPP) and Employment Insurance (EI) annual maximums. CPP employer and employee contributions rates will remain unchanged at 4.95% respectively, however the maximum annual insurable earnings will rise to $54,900 from $53,900 resulting in the maximum annual contribution for the employer and the employee to $2,544.33. Likewise the EI employee contributions rates will remain unchanged at 1.8% and the employer contribution rates will remain at 2.632%. The maximum annual insurable earnings will rise to $50,800 from $49,500 resulting in the maximum annual employee premium of $955.04 and maximum annual employer premium of $1,337.06 from $1,302.84.
For those employers who have workers earning the annual maximum insurable earnings this means an increase of 2.63% in labour costs for 2016. To found out how this will affect your business please contact us at 905-702-8080 or visit us at www.inter-grationcpa.com