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| | CPP And EI Rates CPP Rates | Year | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | | Maximum Earnings | $51,100 | $50,100 | $48,300 | $47,200 | $46,300 | $44,900 | | Basic Exemption | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | | Contribution Rate (%) | 4.95% | 4.95% | 4.95% | 4.95% | 4.95% | 4.95% | | Max. Employer Contribution | $2,356.20 | $2,306.70 | $2,217.60 | $2,163.15 | $2,118.60 | $2,049.30 | | Max. Employee Contribution | $2,356.20 | $2,306.70 | $2,217.60 | $2,163.15 | $2,118.60 | $2,049.30 |
EI Rates | Year | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | | Maximum Earnings | $47,400 | $45,900 | $44,200 | $43,200 | $42,300 | $41,000 | | Employee Contribution Rate (%) | 1.88% | 1.83% | 1.78% | 1.73% | 1.73% | 1.73% | | Max. Employer Contribution | $1,247.57 | $1,175.96 | $1,101.46 | $1,046.30 | $1,024.50 | $993.02 | | Max. Employee Contribution | $891.12 | $839.97 | $786.76 | $747.36 | $731.79 | $709.30 |
CPP Rules Starting 2012 Can start collecting CPP when turning age 60 with no wait period of unemployment (can continue working). Anyone claiming CPP from ages 60 to 64 inclusive will have a reduced rate of 0.6% per month (therefore age 60 = 0.6% X 60 months = 36% reduction). Enhancement of benefit if delaying the CPP claim from age 65 up to age 69 inclusive of 0.7% per month (therefore if delayed to age 70 = 0.7% X 60 months = 42% increase). If under age 65 and collecting CPP, you MUST contribute to CPP if on salary. If age 65 to 74 inclusive and collecting CPP, MUST contribute to CPP if on salary BUT can file CPT30 election every year starting December 31, 2011 to opt out of contributing to CPP. Drop out period changes. From ages 18 to 64 inclusive, starting in 2012 the lowest 7.5 CPP contribution years are excluded from the CPP benefit calculation ( 47 years of potential contribution years - 7.5 years = 39.5 years included in CPP benefit calculation). This is increased to 8 years in 2014.
CPP Considerations It still may make sense to take CPP early. A breakeven analysis using your CPP historical contribution table may indicate that the new rules may not deter you from an early claim. Discuss with your accountant. Waiting until age 70 to collect the enhanced CPP may not make sense as the increase may not make up for the lost CPP benefits from the past 10 years. Discuss with your accountant.
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