Canadian Personal Finance Blog

Happy New Year 2022? Can we even say that yet? After 2021, maybe let’s just say, “We hope for a Happy New Year” and leave it at that.

Over the year we have seen wave upon wave of COVID. Now we are seeing Inflation coming on strong, and natural disasters monthly. All in all a wonderful year.

I have been unable to write much due to work and family issues. I have learned a great deal about Dementia and how the Quebec Legal system works, which has been, enlightening.

Some Numbers to End 2021

Inflation is the scary one. So far, no reaction with Interest Rates, but they are promised some time in 2022.

COVID19 Data Canada

Click here to find an up to date graphic from the Government of Canada

The number of cases is much higher from this time last year, but the number of deaths has doubled.

CPP and EI rate max 2022 (as usual) are a little higher. Were they somewhat following the inflation rate? Not the current rate of inflation, luckily. Lots of arguments about how CPP and EI are a tax? CPP is the Canada Pension Plan, and EI is Employment Insurance, so now sure what they are getting at.

One of my most popular posts in 2021 was CPP (Canada Pension Plan) and EI (Employment Insurance) rates for 2021, so I figure I’ll keep going with a winner. Interestingly interest in this topic is year-round. CPP and EI rates for 2021 (as usual) are a little higher.

Will 2022 be a better year? I don’t know, but it starts with a bang (read Omicron COVID).

As we start 2022 (a new year), all who receive paycheques (the Japanese term is Salaryman) get to start paying CPP and EI premiums again. Depending on how much you make, this might be a short-term issue or a year-long pain.

If you pay CPP and EI premiums all year long, don’t worry, this is not for you. Read on for those who have an end date for your CPP premiums.

CPP EI Max 2022

EI this year is again a bit lower:

• The maximum insurable earnings for 2022 is $60,300, up from $56,300 in 2021. This is the EI maximum insured income for the year. If you earn more than this, and claim EI, this is what your benefits will be based on.
• The rates have remained the same as last year:
  • Workers rate (self-employed folks should research further, or if you live in Quebec) $1.58 per $100 earned.
  • Maximum premium paid $ 952.74, once you reach this point no more EI will be deducted from your pay
  • Max difference from 2021 $ 63.20 more, over the year.

CPP rates continue to rise. The system is under more pressure from more Boomers retiring.

• Maximum Pensionable Earnings: $64,900 (up from $61.600 in 2021)
• Employee Contribution Rate : 5.70 % (rate is up 0.25 % over 2021)
• Maximum contribution for year: $ 3,499.80 ($6,999.60 if self-employed)

Guess How Much Bill Makes

Around July, Bill (a friend) says he has paid off his CPP & EI. Can we construe from this how much Bill makes (given he lives in Ontario and is not self-employed)?

So from this helpful table, we can guess Bill makes more than $105,000.00. Isn’t this a fun game to play? Also, if Bill told you what the approximate EI deduction is on his paycheque, you can guess his gross income using this remarkable table.

Past CPP & EI

Yes, it is a topic I write about, as it is essential to me. Here are a few from the past years to compare and contrast (hint see how much CPP has gone up).

• For 2022 the CPP and EI Limits went up again
• The 2021 limits for CPP and EI were
• CPP and EI for 2020
• CPP and EI for 2019
• Merry New Year, CPP, EI and #MoneyTalk (2017)
• Gosh Darn it! CPP & EI Again!!! (2014)
• Fun with Numbers for 2013 (CPP and EI)
• Gosh Darn CPP and EI! (2010)
• Fun with Numbers with CPP and EI (2007)

Reference:

These are the sites I gleaned the information from

• Employment Insurance premium rate
• CPP contribution rates, maximums and exemptions

FAQ Answers for CPP & EI Maximum

It has been quite the year. This is a whole year of COVID and now another Surge from Omicron, so this is my Merry Christmas Wishes to my loyal readers.

Merry Christmas 2021

It has been a light year for me to write due to family issues. I am dealing with a loved one with dementia and how the Quebec government system works. As with all Governments, it moves very slowly, but we are starting to get to a better place. My French is getting good use these days.

I wish you and your families and loved ones all the best for this Holiday Season. I may have an end-of-year wrap-up, but given how this year is gone.

Christmas Wishes from the Past

I seem to do this a lot, so here are my Christmas wishes from years gone by:

• Merry Christmas 2021 was another COVID crisis time. Omicron hit and Christmas became much more closed up. Maybe the last one of these, but we thought that last year.
• Merry Christmas 2020 ! Do you see the pussy cat in the tree? An odd year with a Pandemic and all. Christmas All Year Round ? Yes, it does feel like that these days doesn’t it? The 12 Days of Christmas Debt ? What the heck ? That isn’t Christmasy at all!
• Merry Christmas 2017 ! That was a year of fun videos that I found to help celebrate the holiday. Love that old CFCF fill.
• Merry Christmas, Highspeed Internet a right, Inflation at 1.2 and #MoneyTalk 2016 ! Sheesh, I couldn’t even be bothered to send a message that year, how Grinchy.
• Merry Christmas 2014 ! A lovely quote from the King James bible for that year. Seem to have done nothing for 2015. This year I even had a Christmas Eve post.
• Happy Christmas 2013 ! I loved the photos of every years Christmas Tree, very festive. Another Christmas Eve post too.
• Merry Christmas 2012 ! You see the hideous curtains we had in the den back then. That year we had the $150 Christmas challenge too.
• Merry Christmas 2011 ! The tree moved back to the front room and I used Google Translate to create a festive message. Think I was on French training that year. Also At Christmas Why Not Just Give Cash ?
• Merry Christmas 2010 has some very deep philosophical commentary in it. Must have been hitting the Christmas cheer early. Christmas Eve that year must have been a Friday.
• Merry Christmas 2009 and all you got was an NFB short? Not that bad really. There was also Christmas Eve thoughts too.
• Merry Christmas 2008 ! That was the year of the infamous Financial Advent Calendar too.
• A few last Yuletide Thoughts was what I had in 2007.
• Merry Christmas 2006 ! A quieter year I suppose.
• Whatever little money you have, make sure you spend it… was my first year writing here. Quite gruff and grinchy.

I almost pulled a significant blunder this month by forgetting to pay my MasterCard Bill when it was due. It wasn’t in my Calendar.

Let us review. When you don’t pay your Credit Card Debt off monthly, you then incur exorbitant usury fees that dig you a hole that you will have a tough time getting out of, so paying your Credit Card debt off monthly and on time is of vital importance in any financial plan you put together.

I usually end up putting the date of when the payment is due in Outlook or Google Calendar. My Calendar will remind me on my SmartPhone (or Watch), but you need Notifications turned on as well. I should write it on the Calendar at home on the Fridge as well, and you may have other places where you put important dates, but that one is essential.

Pay that darn credit card off ASAP!

Carrying credit card debt will hurt you financially. Make sure you get rid of it and pay it right away.

You Can Get Penalties Reversed

I was able to call and ask that the penalties be reversed since I am a “good” customer (i.e. I spend a lot of money with the card, and I pay it off every month). MasterCard was nice enough to forego it for that month. Since I had paid the entire amount, I didn’t have to pay any more penalties.

Use Your Calendar Don’t Be Proud

Don’t be too proud of your memory. This is creating a reminder for you, and maybe for your spouse. If you share your calendar with your spouse they can be aware of bills as well. The more information you share (financially) the fewer misunderstandings about money. Shared Calendars can be a very good thing.