CPP Rates for 2020

Canada Pension Plan (CPP) rates for 2020 will be changing from 5.1% to 5.25%. This means that payroll costs will be increasing for everyone in 2020. Employees will have more deducted from their paycheques for CPP and since employers match employee contributions, they will see the increase as well. Businesses with payrolls of less than $100K annually won’t notice the increase too much. A $100K annual payroll will result in an increase in total payroll costs of $150. The increase is significant if your payroll reaches $100K per month. Ensure you are using the correct rates from the beginning of the year so you are not penalized at the end for not deducting enough. Employers will be on the hook for any CPP that should have been deducted but wasn’t regardless of whether the employee is still working for you or not. Professional Touch Accounting can help with any payroll services your business requires. We can also help with the budgeting and planning process for any increases in payroll costs due to changing legislation.

You can read the article here…