One of the joys of the new year is the restart of having to pay CPP and EI premiums. It always makes that first pay cheque a bit smaller, and thus that much more annoying. You have just got used to not having to pay them (if you make enough money), and now you are back paying them again, how annoying!
The maximum CPP for 2014 is $2425.50 , that is the easy one.
For EI Premiums there are two possibilities:
- If you live in Quebec your Max EI premium is $767.88
- If you don’t live in Quebec your Max EI premium is $937.98
Some folks will pay CPP & EI premiums the whole year, but those who make a bit more, you will eventually hit the max and will stop paying premiums later in the year.
Remember you can have some Fun With Numbers and figure out when you may stop paying these premiums by doing this simple calculation (you’ll need your first pay cheque showing how much you pay each pay cheque):
# Pays = Maximum Premium / Premium per Pay
I do that every year and then mark my calendar to remind myself when I stop paying. On that pay you could take that “extra” money and then pay off debts with it, couldn’t you?
$4,851 for us self-employed folk!!
🙁