by Sabine Lay

Recently, a client asked me why her income increased throughout the year when she didn’t get a pay raise.

The answer is CPP (Canada Pension Plan) and EI (Employment Insurance) contributions.

CPP
As Canadians, anyone who earns employment income is required to contribute to the CPP program. If you are employed, your CPP contributions are deducted at source from your payroll until the maximum annual amount is reached. Once this amount is reached, your take-home pay will increase. Continue reading →