Cpp

[jec]

I'm a little late but, better late than never ;)
I'm opening up an account just to put away for my CPP each week. Just trying to figure out how much I need to put away.

Anyone know what % of income to figure it out????

[DCP_But_Momma_1st]

I usually owe about 300 for cpp.

[jec]

I know how much I owe each year ( 3rd year this Oct ) and it's different each time- only by a few 100 depending upon how much I've made plus I moved and had to close the daycare down for a few months.
There has to be some sort of way they figure out how much is owed...wondering if anyone knows the percentage of income a year they base their numbers you owe on :)

[jec]

I usually owe about 300 for cpp.

Sorry I should have been more clear

[Inspired by Reggio]

Ya mine changes every year as well depending on enrollment and expenses and my final 'taxable income' total ... I generally try to put away 15% of my revenue (aka before expenses) into savings to cover my taxes and 'savings' for the business for times when enrollment is low ... some weeks it is less than that but that is my goal ;)

They do have a 'guide' for us ... as self employed you will basically pay 9.9% of your 'taxable income' aka income after you deduct all your expenses in CPP up to the 'maximum' of $4,613.40.

So if your taxable income after expenses was $21,954 it is my understanding you would owe about $1000 in CPP alone ... because we get $11,500 base deduction on which we do not pay tax or CPP or anything ... so than you have $10 454 you are paying tax and CPP on .... who much you ACTUALLY have to pay to the government will depend as well than on any 'tax credits' you might be entitled to which could than lower that actual 'amount due' at the end of the process which why some of us than get a 'refund' or others have to pay ~ cause even though as self employed people we have not paid any income tax or CPP into it through the year we have paid a whole shit load of OTHER taxes that we get credit towards which could balance out or reduce the income and CPP taxes ;)

Here are my sources for that conclusion ...

http://www.servicecanada.gc .ca/eng/isp/pub/factsheets/cppretirement/contribute.shtml
http://www.tax-services.ca/cpp-ei-maximum-2012-rates-contributions-deductions/