Discuss enhanced portion of cpp contributions


Problem:

"Since 2019 the enhanced portion of CPP contributions had been treated as a tax deduction when employees filed their personal tax returns, with any resulting income tax refund being processed by the CRA. An amount equal to the enhanced portion of CPP contributions is deducted from remuneration to determine net taxable income. The enhanced portion of CPP contributions will include two values: • Any contributions on YMPE above the pre-enhancement contribution of 4.95% of contributory earnings o The enhanced portion will be 1% of contributory earnings for 2024 • The 4% contribution on pensionable earnings greater than YMPE up to the YAMPE that begins in 2024" please explain.

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Accounting Basics: Discuss enhanced portion of cpp contributions
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