This year, there have been many announcements about changes that will affect business taxes in 2024. We have pulled them together here for quick reference, along with a list of resources that can help you manage these changes and your tax affairs in the new year.

The maximum pensionable earnings under the Canada Pension Plan (CPP) will be $68,500—up from $66,600 in 2023. The basic exemption amount for 2024 remains at $3,500.

Starting in 2024, a higher, second earnings ceiling of $73,200 will be implemented and used to determine second additional CPP contributions (CPP2). As a result, pensionable earnings between $68,500 and $73,200 are subject to CPP2 contributions.

Second additional CPP and QPP contributions begin in 2024. After January 1, 2024, any employee who contributes to the CPP or QPP will make CPP2 or QPP2 contributions if and when their annual income surpasses the first earnings ceiling, the Year’s Maximum Pensionable Earnings (YMPE). Employers will make a matching CPP2 or QPP2 contribution.

The YMPE for 2024 will be made available at the beginning of November 2023.

The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2023 will be $66,600—up from $64,900 in 2022. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.

Contributors who earn more than $66,600 in 2023 are not required or permitted to make additional contributions to the CPP.

The basic exemption amount for 2023 remains at $3,500.

The Canada Revenue Agency (CRA) is here to support you and your business in meeting your tax obligations.

If you are a self-employed individual, or if your spouse or common-law partner is self-employed, you have until June 15, 2022, to file your 2021 income tax and benefit return.

What are my tax obligations as a self-employed individual?

If you earned self-employment income from a business that you operate yourself or with a partner, you have to report that income by filing a tax return.

When you're self-employed and you operate your business, you must pay the following:

• personal income tax

• Canada Pension Plan contributions

• Employment Insurance premiums if you are eligible and have registered to participate

Reporting your income also means that the CRA will have the most accurate information on file to determine if you are eligible for provincial and territorial tax credits and benefits, the GST/HST credit and the Canada child benefit.

The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2022 will be $64,900—up from $61,600 in 2021. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.

Contributors who earn more than $64,900 in 2022 are not required or permitted to make additional contributions to the CPP.

The basic exemption amount for 2022 remains at $3,500.

The Government of Canada will continue to make the health and safety of all Canadians a top priority and ensure that adequate supports are in place for all. The CRA is committed to supporting people with disabilities in these challenging times, and will continue to put people at the heart of everything it does in keeping with its People First philosophy.