Question: The impact of CPP contributions can be determined simply by the frequency of which they are paid. Whether it be weekly (52), bi-weekly (26), semi-monthly

The impact of CPP contributions can be determined simply by the frequency of which they are paid. Whether it be weekly (52), bi-weekly (26), semi-monthly (24) or monthly (12). This frequency will determine the yearly exemptions ($3500) of CPP contributions. With the frequency required with the 5.95% contribution rate, this will determine what sort of impact you will see on your income. With transitioning from the first to second contribution, this means that the contributions withheld exceed the limits of the current YMPE (Year's Maximum Pensionable Earnings) and will then meet the new limit of the YAMPE (Year's Additional Maximum Pensionable Earnings). This allows for an additional $4700.00 in secondary contributions and a contribution rate of 4%. Once the maximum contribution limit is reached, CPP deductions will no longer be withheld for the remaining tax year

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