The start of a new year holds such promise.
Enthusiasm for lifestyle changes, goal setting and planning optimistically for financial health.
You’ve probably noticed in the past that your paycheques decrease (possibly dramatically, depending on your classification) come January.
Two Federal deductions – Employment Insurance and contributions to the Canadian Pension Plan – start anew come January 1st.
In 2016, you will pay $1.88 per $100 of insurable earnings, up to the maximum insurable amount of $50,800 (up from $49,500 in 2015) in Employment Insurance premiums. The Winnipeg School Division pays 1.4 times your contribution as well.
The maximum pensionable earnings under the Canadian Pension Plan are $54,900. With a $3500 basic exemption amount, the maximum contributory earnings are $51,400. Both you and the Winnipeg School Division will contribute 4.95% until the maximum contributory earnings are reached.
Once you have contributed the maximum amount in EI Premiums and CPP, you will see an increase in your paycheques. For many of us, that happens sometime in the summer months. Yet another reason to celebrate!