EI premiums

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Azeem11
Member since: Apr 10

Posts: 22
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Post ID: #PID

Posted on: 27-02-12 21:46:00

Hi all,

I have been working as a full time permanent employee for the past 10 years and I have paid EI premiums and CPP during that time. I am right now switching to do a independent consultancy job using my own registered company and I would like to pay myself and be salaried as I will still need mortgage and loans for future.

Do I need to pay EI and CPP? and if yes I want to know if there is a cap to how much EI contributions anyone can do specially I know that I will never go on EI in my life time. The other question is can I stop paying EI premiums and CPP premius for one year untill I establish my company.

Regards,

Azeem

Azeem11
Member since: Apr 10

Posts: 22
Location:
Post ID: #PID

Posted on: 27-02-12 21:48:08

I think I have payed $50000 for the last 10 years in EI premiums.

sant
Member since: Apr 07

Posts: 352
Location:
Post ID: #PID

Posted on: 27-02-12 22:20:29

Quote:
Originally posted by Azeem11

Hi all,

I have been working as a full time permanent employee for the past 10 years and I have paid EI premiums and CPP during that time. I am right now switching to do a independent consultancy job using my own registered company and I would like to pay myself and be salaried as I will still need mortgage and loans for future.

Do I need to pay EI and CPP? and if yes I want to know if there is a cap to how much EI contributions anyone can do specially I know that I will never go on EI in my life time. The other question is can I stop paying EI premiums and CPP premius for one year untill I establish my company.

Regards,

Azeem

You have to pay CPP for sure, not sure about EI if you are an independent consultant .

Also maximum amount of EI & CPP is calculated on your yearly income not on your lifetime income .

I hope that clarifies your concerns .

Azeem11
Member since: Apr 10

Posts: 22
Location:
Post ID: #PID

Posted on: 27-02-12 23:01:52

CPP is the issue as I have 1 person corporation and I have to pay CPP through my company and from my salary. Can you please tell me the maximum deduction by the employer and employee.

I am sorry to ask but I am just new in this and still learning the amounts

Pramod Chopra
Member since: Sep 03

Posts: 1284
Location: Pickering, ON
Post ID: #PID

Posted on: 28-02-12 00:00:00

Quote:
Originally posted by Azeem11

I think I have payed $50000 for the last 10 years in EI premiums.

Follow this http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/clcltng/ei/cnt-chrt-pf-eng.html to

The maximum EI premium since 2001 has been only a little less than $900 and the minimum EI premium has been a little over $700 making an average of around $800 for the whole year, so in 10 years, no matter what income you earned, you may have paid only a little over $8000 in EI premiums.

1997 $1131
1998 $1053
1999 $994.5
2000 $936
2001 $877.5
2002 $858
2003 $819
2004 $772.2
2005 $760.5
2006 $729.3
2007 $720
2008 $711
2009 $731.38
2010 $747.36
2011 $786.76
2012 $839.97

-----------------------------------------------------------------

Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

Pramod Chopra
Member since: Sep 03

Posts: 1284
Location: Pickering, ON
Post ID: #PID

Posted on: 28-02-12 00:08:12

Quote:
Originally posted by Azeem11

CPP is the issue as I have 1 person corporation and I have to pay CPP through my company and from my salary. Can you please tell me the maximum deduction by the employer and employee.

I am sorry to ask but I am just new in this and still learning the amounts

Follow this http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/clcltng/cpp-rpc/cnt-chrt-pf-eng.html for CPP contribution rates, maximums and exemptions.

-----------------------------------------------------------------

Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

aqua
Member since: Jan 11

Posts: 134
Location:
Post ID: #PID

Posted on: 28-02-12 00:24:46

You have to pay CPP - it has two components, deduction from your salary and contribution from your company (who is your employer now).

You are exempt from EI as it is a non arms length employment.

Get hold of an accountant - its worth it.

Contributors: Azeem11(5) sant(4) Pramod Chopra(2) aqua(1)

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EI premiums

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