[Dean2]

OH Ya, CPP is just a GREAT Deal. NOT!!!!! Sure glad I am collecting and not paying anymore. What I get back for what I and my employers paid in, which was always at the max rate, STINKS. Sure glad I don't have to try and live on what I get. It will only get worse going forward. Moving to an APP will certainly not be worse than the system we have now.

CPP, EI CHANGES

As of Jan. 1, many Canadian earners will start seeing a larger portion of their paycheques going toward Canada Pension Plan contributions after the federal government added a second earnings ceiling.

The CPP now has two maximum amounts.

Previously, everyone earning over the base amount of $3,500 contributed a set portion of their income, up to a maximum amount that increases slightly every year.

Like before, the first tier will see workers contribute a set portion of their earnings to CPP up to a government-set threshold.

For 2024, people earning $68,500 or less won't see any changes to their current contribution rates.

Anyone with annual earnings higher than $68,500 now falls into a second contribution level that tops out at $73,200.

People in this group will pay an additional four per cent on the amount of money they make between $68,500 and $73,200, with a maximum additional contribution amount of $2,928.

John Oakey, vice president of taxation with Chartered Professional Accountants of Canada (CPA Canada), told BNNBloomberg.ca that the change, paired with EI contributions, could create a significant tax burden for middle-income-earning employees, and for their employers.

“What this means for employers is if you were to hire somebody in 2024 and you were paying them $73,200, it's going to cost you 7.5 per cent for employment taxes,” Oakey said.

“And employees are paying seven per cent, so that's 14.5 per cent that's going to fund the CPP and EI between employees and employers … that’s a lot of tax to be paid, and a lot of administrative burden.”

In addition to CPP contribution changes, the maximum insurable earnings ceiling for EI has risen to $63,200, up from $61,500 in 2023 and $60,300 in 2022 – an increase Oakey said was “normal course of business.”