CPP Maximum Pensionable Earnings Raised for 2020

 

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: investment@cdspi.com  or 1.800.561.9401

 

* Advisory services are provided by licensed advisors at CDSPI Advisory Services Inc. Restrictions may apply to advisory services in certain jurisdictions.