Canada Pension Plan (CPP) rules for self-employed

How does the Canada Pension Plan (CPP) work for self-employed Canadians? If you are an employee in Canada, your employer will deduct some money from your paycheck and also match your contribution to the Canada Pension Plan which builds savings for your retirement. However, if you are self-employed, you don't have an employer to deduct or match your contributions. Therefore, you are required to pay both portions directly to the CRA. The amount due is assessed on your tax return and is based on your net income from business. Canada Revenue Agency website: https://www.canada.ca/en/revenue-agency/news/2023/05/the-canada-pension-plan-enhancement--businesses-individuals-and-self-employed-what-it-means-for-you.html Magnaltus Instagram: https://www.instagram.com/magnaltus/ #business #businessmanagement #businessstartup