Happy New Year! I have been rummaging through my archives, and a tradition seems to be talking about CPP & EI for each year. Who am I to argue with practices?
Of course, you realize this is for 2019, the numbers have changed for 2020, and you can read about them here!
As we start a new year, all folks who receive paycheques (I believe the Japanese term is Salaryman) get to start paying CPP and EI premiums again.
For many folks, they are just deductions that appear on every pay stub. For folks who make more, this deduction disappears sometime in the year, and after that, they get a “virtual raise” given they do not have to pay these deductions for the rest of the year.
It is easy to approximate how much someone makes by knowing when they stop paying EI premiums.
It’s a pretty simple game to play and well worth a couple of minutes to create a miniature model to figure this thing out.
Meet Jill for 2019
Jill gets paid bi-weekly, lives in Ontario and works as a private firm NUJAC. She gets paid a regular salary (assuming no bonuses ). If we list the month in which Jill tells us, “I stopped paying EI premiums in August,” we can then approximate how much Jill makes in salary.
We learn from the EI website that the 2019 premium is 1.62% of insurable earnings (and the maximum insurable earnings were $53,100 in 2019).
|EI Rate||1.62%||Max income||$ 53,100.00|
|CPP Rate||5.10%||Max income||$ 53,900.00|
|Approx Gross |
|Per Pay EI||Per Pay CPP|
So Jill makes about $76,000 a year.
CPP and EI For Other Years
- 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)