Which of the following is considered a contributory earning for CPP?
Understand the Problem
The question is asking to identify which option qualifies as contributory earnings for the Canada Pension Plan (CPP). It involves understanding different types of income and their eligibility for CPP contributions.
Answer
Pensionable earnings minus the basic exemption amount
Pensionable earnings minus the basic exemption amount
Answer for screen readers
Pensionable earnings minus the basic exemption amount
More Information
The basic exemption amount for CPP is a set figure, which is subtracted from your total pensionable earnings. The result is your contributory earnings.
Tips
A common mistake is not subtracting the basic exemption amount from the total pensionable earnings, which results in an incorrect calculation of contributory earnings.
Sources
- Canada Pension Plan (CPP) FAQ - UBC Finance - finance.ubc.ca
- Canada Pension Plan (CPP) Contributions - Western University - uwo.ca
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