The Canada Revenue Agency (CRA) has announced the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2020 will be $58,700, up from $57,400 in 2019. Increased contribution rates were also announced.
What does this mean for dentists?
Those who earn more than $58,700 in 2020 aren’t required or permitted to make any additional contributions to the CPP. The basic exemption amount will remain the same at $3,500.
Employee and employer CPP contribution rates for 2020 will be 5.25%, up from 5.1% in 2019.
The new self-employed contribution rate will be 10.5%, an increase from 10.2% in 2019.
For more information on employee and employer contributions, as well as the maximum contribution rates, visit: Canada Revenue Agency announces maximum pensionable earnings for 2020.
Speak to a CDSPI Investment Planner* about how to integrate CPP income as part of a customized financial plan. Contact us by phone or email: firstname.lastname@example.org or 1.800.561.9401
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