|
|
 |
|
Canada:
Contributions to Canada Pension Plan
Under Bill C-2 passed on 19 December 1997, a new contribution schedule to Canada Pension Plan has been introduced. Employer and employee contribution rates will rise from the combined rate initially announced for 1997 of 5.85% to a constant rate of 9.9% of payroll up to the yearly maximum pensionable earnings (YMPE) in 2003 and following years. The bill was originally tabled in February last year, but its passage was halted by the calling of a general election. The changes came into effect on 1 January 1998 and retroactively increase the 1997 employer and employee contribution rates from 2.925% each to 3.0% each, up to the YMPE of C$35,800 (with annual contribution of maximum C$944.78 for the both employer and the employee). Employees will have to remit the difference in their 1997 tax returns.
|
|
|
|
|
|
Contact Us 