At a glance
- Each year the CRA sets a maximum amount of CPP, CPP2 and EI an employee pays.
- Once an employee reaches a maximum, that deduction stops for the rest of the year, along with your matching employer share.
- PayCub tracks year-to-date amounts and stops each deduction automatically.
How the maximums work
CPP and EI are deducted from each pay until the employee's year-to-date contributions reach the annual maximum. CPP2 is a second tier of CPP on earnings above the first CPP earnings ceiling, with its own maximum. When a maximum is reached, that deduction stops, so a higher earner's take-home pay goes up later in the year.
The CRA publishes the new rates and maximums each year. PayCub updates them for you, so you don't need to look them up.
What PayCub does
PayCub keeps each employee's year-to-date CPP, CPP2 and EI run after run, and stops deducting once each one reaches its maximum. It's handled the same way every time, for every employee.
Why order matters. Maximum tracking only works when every pay run is entered in order, with correct year-to-date totals behind it. Skipping or misordering a run throws off the maximums for the rest of the year, which is one reason older stubs lock (see Backdating and locked pay stubs).