|If you reach the maximum CPP/EI in 2013, you will see an increase in the amount of your net pay. Many employees reach their maximum level of CPP EI contributions sometime during the year. If you reach the maximum level of CPP / EI, you will see an increase in the amount of your net pay as there will no longer be CPP / EI deductions withheld. Beginning with the new year, you will recommence paying CPP EI contributions until such time as you reach the maximum CPP EI contribution level for 2013.Check out 2013 CPP EI Maximum Contributions below.|
CPP Maximum 2013 | CPP Rates for the Year 2013
The maximum CPP contribution to the plan for 2013 will be increased by $49.50 to $2,356.20, representing an increase of about 4% over the last year and the maximum self-employed CPP contribution for 2013 will be $4,712.40. The CPP maximums for the Year 2012 were $2,306.70 and $4,613.40.
The CPP Rates, effective January 1, 2013, forecast to remain unchanged at 4.95% of pensionable earnings. The basic exemption amount for 2013 expects to remain $3,500. Individuals who earn less than that amount do not need to contribute to the CPP.
EI Maximum 2013 | EI Rates for the Year 2013
Your rate of EI premiums (excluding employees working in the province of Quebec), for the 2013 taxation year forecasts to remain at 1.73% of insurable earnings. The annual maximum insurable earnings will be increasing from $45,900 to $47,400. The maximum EI contribution to the plan for 2013 will be $892.12. The EI maximum for the Year 2012 was $839.97. Once you reach the annual maximum premium deduction of your EI maximum in 2013, you will see an increase in the amount of your net pay as there will no longer be EI deductions withheld from your pay.
Maximum CPP Contribution | CPP Deduction 2013
At the beginning of the year 2013, 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.