What is the CPP enhancement?

The CPP enhancement was designed to increase retirement income for working Canadians and their families.

On January 1, 2019, most Canadian employees, employers, and self-employed individuals started to make additional contributions to the CPP as part of the CPP enhancement. Anyone contributing to the CPP enhancement after January 1, 2019 will receive an increased amount of CPP retirement pension, post-retirement benefit, disability pension, and survivor’s pension when they retire.

Second additional CPP contributions: 2024 to 2025

The second additional CPP contributions (CPP2) begin on January 1, 2024. They are additional CPP contributions for workers who earn higher wages. CPP2 contributions are made in addition to base CPP and first additional CPP contributions.

It is important to understand:

  • the first earnings ceiling
  • the second earnings ceiling

Workers earning annual wages over a certain amount, the first earnings ceiling, will make CPP2 contributions up to the second earnings ceiling.

What are the first and second earnings ceilings

The first earnings ceiling is the eligible income on which you make CPP contributions. It is formally known as the year’s maximum pensionable earnings, or YMPE. The first earnings ceiling, or YMPE, will be $68,500 in 2024.

In 2024, the second earnings ceiling, known as the year’s additional maximum pensionable earnings, or YAMPE, will be introduced. The amount of the second earnings ceiling is based on the amount of the first earnings ceiling.

The amount of the second earnings ceiling is:

  • approximately 7% higher than the first earnings ceiling in 2024
  • approximately 14% higher than the first earnings ceiling in 2025 and following years

In 2024, the second earnings ceiling will be $73,200.

In 2025, and every year after, the amount of the second earnings ceiling will be approximately 14% above the amount of the first earnings ceiling.

How second additional CPP contributions are calculated

CPP2 contributions are made by anyone who earns wages above the first earnings ceiling. CPP2 are calculated as a percentage of wages above the first earnings ceiling up to the amount of the second earnings ceiling.

  • Employees contribute 4% of the amount they earn between the first earnings ceiling and the second earnings ceiling
  • Self-employed individuals contribute 8% of the amount they earn between the first earnings ceiling and the second earnings ceiling

If you earn more than the first earnings ceiling, but less than the second earnings ceiling:

Employees who earn more than the first earnings ceiling, but less than the second earnings ceiling, will contribute 4% of the amount they earn that is above the first earnings ceiling. Their employers will also contribute 4% on their behalf.

Self-employed individuals who earn more than the first earnings ceiling, but less than the second earnings ceiling, will contribute 8% of their net business income above the first earnings ceiling.

CPP2 contribution rates:

  • 4% for both employers and employees
  • 8% for self-employed individuals

If you earn less than the first earnings ceiling, you will not make CPP2 contributions. You will continue to make base and first additional CPP contributions of 5.95% if you are an employee or an employer, or 11.9% if you are self-employed.

Vaidehi

Bookkeeper

Meet Vaidehi, a dedicated and professional Bookkeeper since 2021, who proudly supports and assists her clients. Her efficiency and expertise shines through her seamless handling of her clients’ financial records including Accounts Receivable, Accounts Payable, Bank Reconciliation and client communication. Trust Vaidehi to provide the support and solutions you need. During her personal time, Vaidehi enjoys dancing, cooking and tending to her garden.

Tinna

Bookkeeping Manager

Introducing Tinna, our resourceful and dynamic Bookkeeping Manager with over 12 years of hands-on experience. An expert in all aspects of accounting and finance operations, she handles preparation and maintenance of statutory accounting books, reconciling revenue and expenditure accounts, overseeing the preparation of monthly, quarterly, bi-annual and year-end financial statements, implementing stellar accounting systems and controls, budgeting and financial projections. Tinna’s solid background in managing both financial and non-financial assets, investigating and auditing accounts, makes her an asset to the Fiscal Performance team.

Duane

Executive Director

A true believer in the power of streamlined workflows and strategic financial planning, Duane is not just about balancing the books; he is also about balancing success with sustainability, innovation with tradition, and growth with groundedness. Bringing together a blend of expertise, experience, and enthusiasm, he is focused on improving systems to continue on providing a high level of customer service to all of Fiscal’s partners, customers and vendors. He invites you to join the Fiscal Performance network and learn how to solve your accounting and bookkeeping challenges today.

Olu

Client Service Manager

If you’re seeking a bookkeeper with a passion for precision, a friendly demeanor, and a love for the beautiful game of soccer, then look no further than Olusegun. With over 10 years of experience with auditing and financial analysis, Olusegun brings a unique blend of expertise and enthusiasm to the table. Known for his approachable demeanor and willingness to go the extra mile, he’s not just your typical accountant – he’s a trusted ally in your company’s full cycle financial management. So, if you’re in need of a bookkeeper (with auditing know-how) who gets the job done, valuing integrity and reliability as part of every job, Olusegun is your go-to guy!

Sam

Task Manager & Quality Control

Sam is a seasoned Bookkeeping Manager with over 14 years of experience. Proficient in book cleaning, reviews, HST report preparation, and finalizing accounts using QuickBooks, he holds a Bachelor’s degree in Law, and Master’s degree in Commerce. Sam is known for his dedication to meeting deadlines, his collaborative work ethic, and equal prioritization of family and work. A nature and pet lover, he finds solace in music.

Daniel

Reviewer

Meet Daniel, a highly esteemed member of our team, whose accounting expertise spans back to 2015. Holding a semi-qualified Chartered Accountant designation and a post-graduate in Accounting (achieved in 2018) Daniel remains steadfast in catering to the needs of clients. Over the course of this distinguished career, Daniel has cultivated invaluable proficiency with an array of esteemed accounting software. Renowned for unwavering punctuality, Daniel consistently maintains a proactive approach, ensuring meticulous oversight of all deliverables.

Eric

Bookkeeper

Meet Eric, a distinguished professional with a Master of Commerce and a semi-qualified Chartered Accountant. He boasts three years of specialized experience in Canadian and US accounting, using software such as QuickBooks Online, QuickBooks Desktop, and Dext. Eric’s proficiency shines through his seamless handling of onboarding, migration, clean-up, and catch-up projects. Renowned for his tech-savvy approach, Eric leverages his expertise in advanced Excel macro building to empower clients — enhancing their productivity and efficiency. Trust Eric to deliver unparalleled financial solutions tailored to your specific needs, ensuring excellence every step of the way.

Jess

Bookkeeper

Jess is a dedicated Bookkeeper, with a Bachelor of Accounting, who is proud to assist her clients with bookkeeping support, since 2020. Jess is well-versed in a suite of software programs with a focus on QuickBooks Online. Her expertise extends beyond conventional bookkeeping, encompassing Accounts Receivable, Accounts Payable Management, Payroll processing, and adeptly managing the books as per client specifications and needs. She stands out for her swift file processing capabilities and streamlined financial processes at Fiscal Performance.

David

Task Manager

Meet David, Fiscal Performance’s Task Manager. A distinguished accounting & finance professional since 2014, David is adept in leadership roles. Known for his advanced skills in process implementation and continuous improvement, David works to ensure optimal outcomes for clients. With extensive experience spanning global markets including Canada, USA, UK, and Australia, he specializes in providing comprehensive CFO & bookkeeping services. Proficiency in a variety of accounting software enables him to tailor solutions to meet his clients’ needs effectively. David is detailed oriented and his ability to deal with conflicting priorities in high-pressure situations makes him an VIP at Fiscal Performance.

Chris

Reviewer

Introducing Chris, a Reviewer at Fiscal Performance and a seasoned professional in the accounting & finance industry. He boasts a career, starting in 2017, that includes executive roles to team leader positions. A post graduate in accounting, he is proficient in software such as QuickBooks Online and QuickBooks Desktop. Chris has honed his skills over the years, optimizing his bookkeeping processes by prioritizing accuracy and efficiency. Known for his dedication and meticulous approach, Chris consistently seeks out innovative solutions to streamline operations and deliver top-tier results. His commitment to excellence and his proactive attitude makes him an invaluable asset at Fiscal Performance.

Tracy Khamis

CPB, DFA – Bookkeeping Services Specialist™

Managing Director

Always wanting to learn and gain knowledge, Tracy has worked for multiple companies from various industries. Having the opportunity to work in varied industries from small companies to large organizations such as banks, accounting firms, schools, restaurants, construction, manufacturing and the arts has been extremely exciting. Each industry has different rules that apply, along with different government requirements. This experience has provided Tracy with extensive growth and understanding of bookkeeping, multiple software platforms, and in-depth financial report preparation. To know Tracy is to appreciate what she can do to put your books in order and keep them in a timely, relevant and professional manner.

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