Source: Governement of Canada / Investment Executive, December 2001
Title: Canada Contribution Plan Rates for 2001
The government has announced substantial increases in the Canada Pension Plan contribution rates for 2001. Maximum pensionable earnings for the Canada Pension Plan (CPP) are to be increased from $37,600 to $38,300, and the rate will be increased from 3.9% to 4.3%. As a result, the maximum CPP contribution for employees will rise from $1,329.90 to $1,496.40 - an increase of $166.50.
Self-employed taxpayers maximum contribution will increase to $2,992.80. However, beginning in 2001 you will be able to claim half of this amount as a deduction instead of as a non-refundable tax credit. This may be beneficial if your taxable income is more than $30,754 in 2001.