Canada Pension Plan

Canada Pension Plan (CPP) (January 23, 2012)

The rules have changed effective January 1, 2012.

All persons under 65 receiving wages must pay CPP premiums. In prior years, CPP premiums stopped once you began to receive CPP benefits.

If you are 55+ and own a private company you should consider the cost of CPP ($4,600 per year) vs future benefits. CPP can be avoided by replacing salary with dividends.

If you want to discuss this further, give us a call.

Resources:
CPP Changes (Service Canada)
CPP