Tax Quick Facts 2017: Part 1 of 2

Mar 07 | 2017

Advisors are busy. Wouldn’t you love one place where various provincial and federal tax tidbits are listed? Our Benefits by Design Tax Quick Facts compiles information about tax implications and rates as they affect group benefit plans. This document – updated yearly – reflects current information for the year 2017 and is up-to-date at time of publication.

Canada Pension Plans

Contributions 2016 2017
Annual Maximum Pensionable Earnings $54,900 $55,300
Annual Maximum Exemption $3,500 $3,500
Contribution Basis $51,400 $51,800
Employee – Maximum Annual Contributions $2,544.30
4.95% of $51,400
$2,564.10
4.95% of $51,800
Employer – Maximum Annual Contributions $2,544.30
4.95% of $51,400
$2,564.10
4.95% of $51,800
Self-Employed – Maximum Annual Contributions $5,088.60
9.90% of $51,400
$5,128.20
9.90% of $51,800

 

Benefits – CPP 2016 – Maximum Amount 2017 – Maximum Amount
Retirement Pension: Age 65 $1,092.50 $1,114.17
Post Retirement $27.31 $27.85
Death Benefits
Lump Sum $2,032.18 $2,500.00
Surviving Spouse (under age 65) $593.62/mo. $604.32/mo.
Surviving Spouse (over age 65) $655.50/mo. $668.50/mo.
Child (per child) $237.69/mo. $241.02/mo.
Disability Benefits
Contributor $1,290.81/mo. $1,313.66/mo.
Child (per child) $237.69/mo. $241.02/mo.

 

Quebec Pension Plans

Contributions 2016 2017
Annual Maximum Pensionable Earnings $54,900 $55,300
Annual Maximum Exemption $3,500 $3,500
Contribution Basis $51,400 $51,800
Employee – Maximum Annual Contributions $2,737.05
5.325% of $51,400
$2,797.20
5.325% of $51,800
Employer – Maximum Annual Contributions $2,737.05
5.325% of $51,400
$2,797.20
5.325% of $51,800
Self-Employed – Maximum Annual Contributions $5,551.20
10.80% of $51,400
$5,594.40
10.80% of $51,800

 

Benefits – QPP 2016 – Maximum Amount 2017 – Maximum Amount
Retirement Pension: Age 65 $1,092.50 $1,114.17
Retirement Pension: Age 60 (64%) $699.20 $713.07
Retirement Pension: Age 70 (142%) $1,551.35 $1,582.12
Death Benefits
Lump Sum $2,500.00 $2,500.00
Surviving Spouse (under age 45) without dependent children $530.42/mo. $540.23/mo.
Surviving Spouse (under age 45) with dependent children $847.39/mo. $861.64/mo.
Surviving Spouse (under age 45 and disabled) with/without dependent children $881.09/mo. $895.81/mo.
Surviving Spouse (between the ages of 45 to 64) $655.50/mo. $668.50/mo.
Surviving Spouse (age 65 and over) $881.09/mo. $895.81/mo.
Child (per child) $237.69/mo. $241.02/mo.
Disability Benefits
Contributor $1,290.78/mo. $1,313.63/mo.
Child (per child) $75.46/mo. $76.52/mo.

 

Employment Insurance (EI)

2016 2017
Maximum Weekly Benefit $537.00 $543.00
Maximum Annual Insurable Earnings $50,800 $51,300
Employee Contribution Rate (oustide of Quebec) 1.88% 1.63%
Employer Contribution Rate 2.632% 2.282%
Maximum Employee Cost $955.04 $836.19
Maximum Employer Cost – Non-Qualified Plan $1,337.00 $1,171.00
Employee Contribution Rate (Quebec) 1.52% 1.27%
Employer Contribution Rate 2.128% 1.778%
Maximum Employee Cost $772.16 $651.51
Maximum Employer Cost – Non-Qualified Plan $1,081.02 $912.11

 

Quebec Parental Insurance Plan (QPIP)

2016 2017
Maximum Annual Insurable Earnings $71,500 $72,500
Employee Contribution Rate 0.548% 0.548%
Employer Contribution Rate 0.767% 0.767%
Maximum Employee Cost $391.82 $397.30
Maximum Employer Cost $548.41 $556.08

 

Registered Pension / Savings Plans

2016 2017
Defined Benefit Plan (Limit for P.A. Calc.) $26,010 $26,230
Defined Contribution Plan / RFP $25,410 $25,630
Registered Education Savings Plan (RESP) $7,200 $7,200
Registered Retirement Savings Plan (RRSP) $25,370 $26,010
Deferred Profit Sharing Plan (DPSP) $13,005 $13,115
Tax-Free Savings Account ($5,000/yr from 2009-2012) $5,500 $5,500

Want to learn more? View part two in this series.

Part Two