Tax rate on CPP-D


#1

If a person has both taxable and non taxable income, is the tax rate on CPP-D based on a person’s total income (taxable and non taxable)?


#2

Only on taxable income. You don’t report non-taxable income on tax return.


#3

I am no tax expert, but my understanding is that marginal tax rates apply only to taxable income. Your non-taxable income does not factor in at all. You should confirm this with a tax preparer or accountant.


David Brannen

Disability Lawyer with Resolute Legal

The response posted above is based on the limited factual information made available and is not intended as a full and complete response to the question. The only reliabile manner to obtain complete and adequate legal advice is to consult with a lawyer, fully explain your situation, and allow the lawyer enough time to research the applicable law and facts required to give an adequate opinion. The basic information provided above is intended as a public service only, a full discussion with a lawyer should be done before taking any any action. The information posted on this forum is available to the viewing public and is not intended to create a lawyer client relationship with any person. Answers from lawyer moderators are provided for informational purposes only, you should consult with your own legal counsel before taking any action that could affect your rights or legal obligations.


#4

Great, it is not super important, a guess is fine.
I’m making a very rough spreadsheet.

Does anyone know if employer LTD plans usually increase payments for inflation?
If there is no typical (90%) answer then how would I find out for sure?


#5

If your LTD plan has inflation adjustment or Cost of Living Adjustment (COLA), then the formula for this would be set out in the policy. In most Policies that we see, the COLA simply maps the annual rate of inflation set by the Bank of Canada…up to a maximum of 2 or 3%. So if inflation is greater than the limit set out in the policy (2 or 3 percent), then your COLA still only goes up by 2 or 3 percent. Go to the Bank of Canada Inflation Calculator to see the inflation rates year over year.


David Brannen

Disability Lawyer with Resolute Legal

The response posted above is based on the limited factual information made available and is not intended as a full and complete response to the question. The only reliabile manner to obtain complete and adequate legal advice is to consult with a lawyer, fully explain your situation, and allow the lawyer enough time to research the applicable law and facts required to give an adequate opinion. The basic information provided above is intended as a public service only, a full discussion with a lawyer should be done before taking any any action. The information posted on this forum is available to the viewing public and is not intended to create a lawyer client relationship with any person. Answers from lawyer moderators are provided for informational purposes only, you should consult with your own legal counsel before taking any action that could affect your rights or legal obligations.


#6

Does that come down to getting the master policy then?


#7

All roads lead back to the master policy, but this is usually set out in the Group Benefits Booklet as well. If you are just doing your own rough calculations, it is very likely it is Bank of Canada annual inflation rate to a maximum of 2%.


David Brannen

Disability Lawyer with Resolute Legal

The response posted above is based on the limited factual information made available and is not intended as a full and complete response to the question. The only reliabile manner to obtain complete and adequate legal advice is to consult with a lawyer, fully explain your situation, and allow the lawyer enough time to research the applicable law and facts required to give an adequate opinion. The basic information provided above is intended as a public service only, a full discussion with a lawyer should be done before taking any any action. The information posted on this forum is available to the viewing public and is not intended to create a lawyer client relationship with any person. Answers from lawyer moderators are provided for informational purposes only, you should consult with your own legal counsel before taking any action that could affect your rights or legal obligations.