The Canada Revenue Agency has set the 2026 Canada Pension Plan earnings ceiling at $74,600 with a contribution rate of 11.9% on earnings up to that limit. For Ontario trades shop owners, this means they must calculate and remit half of the 11.9% rate on each employee's pensionable earnings up to $74,600 as part of payroll deductions. Employers can see exactly how every number is calculated using the CRA's Statement of Contributions to verify accuracy.
Employers must remit CPP deductions on time to avoid CRA penalties and personal liability for directors. The maximum base CPP contribution for each employee in 2026 is $4,230.45, and shop owners can trace every deduction to ensure compliance. This applies to all employees, including those in Ontario trades, and helps maintain fully burdened labour costs.