CPP Maximum 2011 | 2011 CPP Rates
The CPP Rate, effective January 1, 2011, remain unchanged at 4.95% of pensionable earnings. The maximum CPP contribution is $2,217.60 for the 2011 taxation year.
The basic exemption amount for 2011 remains $3,500. Individuals who earn less than that amount do not need to contribute to the CPP.
The self-employed CPP contribution rate will remain unchanged at 9.9%. The maximum employer and employee CPP contribution to the plan for 2011 is $2,217.60, and the maximum self-employed contribution is around $4,435.20. The CPP maximums in 2010 were $2,163.15 and $4,326.30.
Maximum CPP Contribution | CPP Deduction 2011
At the beginning of the year 2011, the lowest rate of the two possible rates of contribution to the public service pension plan is used until the maximum level of contribution for that rate is reached. Then, the higher rate of contribution is used for the remainder of the year. Beginning with the new year, public service pension plan contributions recommence at the low rate, until such time as they reach the maximum level of the contributions for the low rate. Therefore, if you are a contributor under the public service pension plan and you compare your last pay in December to your first pay in January, you may see that you have paid a larger amount to the plan in December than in January.
Many employees reach their maximum level of Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) contributions sometime during the year. If you reach the maximum level of CPP/QPP, you will see an increase in the amount of your net pay as there will no longer be CPP/QPP deductions withheld. Beginning with the new year, you will recommence paying CPP/QPP contributions until such time as you reach the maximum CPP/QPP contribution level for 2011.
EI (Employment Insurance) Maximum for the Year 2011
Your rate of EI premiums (excluding employees working in the province of Quebec), for the 2011 taxation year remains at 1.73% of insurable earnings. The annual maximum insurable earnings will be approximately increasing from $43,200 to $44,200. If you reached the maximum EI premiums during the previous year, you will recommence paying EI premiums in the new year until the maximum premium level is reached. Once you reach the annual maximum premium deduction of $786.76 in 2011, you will see an increase in the amount of your net pay as there will no longer be EI deductions withheld from your pay.