Employee contributions under the Canada Pension Act are 4.95% of pensionable earnings. Pensionable earnings deduct a basic yearly exemption of $ 3,500 and impose a maximum ceiling of $ 55,900. Marco earns $ 1,000 per week. What amount of CPP will be deducted each week from Marco's pay?

Question

Quizplus · Accepted Answer

Marco's annual earnings are $52,000 ($1,000 x 52 weeks). After the $3,500 exemption, his pensionable earnings are $48,500. The weekly CPP deduction is 4.95% of $48,500 divided by 52 weeks, which equals $46.17.

Employee Contributions Under the Canada Pension Act Are 4