How This New Accounting Trend Could Help You
The Canada Pension Plan (CPP) is increasing its contribution limits for 2022. It means that employees and employers will have to contribute 5.7%, up from the current 5.45%. Also, the self-employed contribution rate will increase to 11.4%, up from 10.9%.
The enhanced contributions mean that the yearly maximum pensionable earnings (YMPE) under the CPP which is today $61,600 will swell to $64,900 going forward.
While this will provide more money for employees during retirement, it will have huge ramifications in the present as employers will incur increased costs to their payroll. It will add to the financial hurdles currently experienced by small businesses during the ongoing pandemic.
Therefore, one of the ways that enterprises can plan for the various challenges ahead is to adopt the latest accounting apps. It will help reduce administrative time and improve accuracy leading to better decision making.
However, there will be a steep learning curve to get used to the apps. So organizations should work with accountants and bookkeepers that are tech-savvy and always follow best practices.
At Family Bookkeeping and Consulting, CPA, we have established a seamless process by leveraging technology. It’s introduced to our clients during onboarding.
Our process enables clients to achieve peace of mind and gives them more time to spend doing what they really love. So if you need assistance with accounting, get in touch with our team today.
Our services include bookkeeping, statutory tax filing, payroll, business consulting, budgeting, and tax preparation. We also offer CFO services to our clients.
We serve clients across Chase, Cache Creek, Falkland, Monte Lake, Blue River, Ashcroft, Barriere, Kamloops, Enderby, Savona, Merritt, Nicola Valley, and the surrounding areas.