As we start 2020 (a new year and a new decade), all we folks who receive pay cheques (I believe the Japanese term is Salaryman), we get to start paying CPP and EI premiums again, hooray! Taxes make us strong!?! I resolved to pay less taxeslegally this year.
If you pay CPP and EI premiums all year long, this is not for you, however, for those lucky enough to earn more than that, read on.
EI this year is again a bit lower:
- The maximum insurable earnings for 2020 is $54,200, up from $53,100 in 2019.
- The rates have lowered a little as well:
- Workers rate (self-employed folks should research further, or if you live in Quebec) $1.58 per $100 earned.
- Maximum premium paid $856.36 , once you reach this point no more EI will be deducted from your pay
- Max difference from 2019 -$3.86
CPP rates continue to rise. Given the number of retirees, not surprising really.
- Maximum Pensionable Earnings: $58,700
- Employee Contribution Rate : 5.25 % (rate is up 0.15 % over 2019)
- Maximum contribution for year: $2,898.00
Guess How Much Bill Makes
Somewhere 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)?
|Month||Bi-Weekly Pays||Approx Gross Income||Per Pay EI||Per Pay CPP|
So from this helpful table, we can guess Bill makes less than $88,100.00. Isn’t this a fun game to play? Also if Bill told you what the approximate EI deduction is on his pay cheque, you can also guess his gross income, using this cool table.
Past CPP & EI
Yes, it is a topic I write about, as it is important to me. Here are a few from the past years, to compare and contrast (hint see how much CPP has gone up).
- How about CPP and EI for 2021?
- 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)
These are the sites I gleaned the information from