News

What's new for 2010:

Canada Pension Plan Contributions

The Canada Revenue Agency has announced that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2010 will be $47,200-up from $46,300 in 2009. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.

Contributors who earn more than $47,200 in 2010 are not required or permitted to make additional contributions to the CPP.

The basic exemption amount for 2010 remains $3,500. Individuals who earn less than that amount do not need to contribute to the CPP.

The employee and employer contribution rates for 2010 will remain unchanged at 4.95%, and the self-employed contribution rate will remain unchanged at 9.9%.

The maximum employer and employee contribution to the plan for 2010 will be $2,163.15, and the maximum self-employed contribution will be $4,326.30. The maximums in 2009 were $2,118.60 and $4,237.20.

Unemployment Insurance Premiums

For employees, the premium rate will remain at $1.73  per $100 of insurable earnings, effective January 1, 2010. The rate paid by employers will remain at $2.42.  per $100 of insurable earnings.

The maximum insurable earnings (MIE) for 2010 will be $43,200, up $900 from its 2009 level. The MIE is the income level up to which earnings are insured and on which premiums are paid by employees and employers. This in turn also determines maximum weekly EI benefits. The maximum EI Premium will therefore be $747.36 for 2010.

Automobile Benefits Online Calculator

Canada Revenue Agency has included an online Automobile Benefits Calculator on its website. This can be found at:

http://www.cra-arc.gc.ca/eservices/tax/business/aboc-e.html


Payroll Deductions Online Calculator

Canada Revenue Agency has included an online Payroll Deductions Calculator on its website. This can be found at:

https://apps.cra-arc.gc.ca/ebci/rhpd/startLanguage.do?lang=English


Average exchange rate for 2009 for $1 CAD/USD = 1.14197729

Tax-free Savings Account (TFSA)

Starting in 2009, Canadians aged 18 and older can save up to $5,000 every year in a TFSA. Contributions to a TFSA will not be deductible for income tax purposes but investment income , including capital gains earned in a TFSA will not be taxed, even when withdrawn. Unused TFSA contribution room can be carried forward to future years and you can withdraw funds from the TFSA at any time for any purpose without tax consequences.  For more information can be found on the CRA website  - http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/menu-eng.html

Home Renovation Tax Credit

The Federal government introduced a new tax credit called the Home Renovation Tax Credit which applies to eligible expenses of more than $1,000 incurred after January 27,2009 and before February 2010. More information can be obtained at the CRA website - http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/hmwnr/hrtc/menu-eng.html