Question:pcl -3-5 Veronica works for Parkland Insurance in Alberta and is paid 3,569.33 semi-monthly.She celebrated her her 70th birthday in 70^th October 2024. Calculate Veronica's annual maximum second Canada Pension Plan contribution for 2024. square

To calculate Veronica's annual maximum second Canada Pension Plan (CPP) contribution for 2024, we need to follow these steps:<br /><br />1. **Determine the Maximum Pensionable Earnings for 2024:**<br /> The maximum pensionable earnings under the CPP for 2024 is typically set by the government. For this calculation, let's assume it is $66,600 (this is an example figure; please verify with the actual rate for 2024).<br /><br />2. **Calculate the Basic Exemption Amount:**<br /> The basic exemption amount is a fixed amount that is not subject to CPP contributions. This amount is $3,500.<br /><br />3. **Calculate the Maximum Contributory Earnings:**<br /> \[<br /> \text{Maximum Contributory Earnings} = \text{Maximum Pensionable Earnings} - \text{Basic Exemption Amount}<br /> \]<br /> \[<br /> = 66,600 - 3,500 = 63,100<br /> \]<br /><br />4. **Determine the CPP Contribution Rate:**<br /> The CPP contribution rate for employees is typically around 5.95% (again, verify the exact rate for 2024).<br /><br />5. **Calculate the Maximum Annual CPP Contribution:**<br /> \[<br /> \text{Maximum Annual CPP Contribution} = \text{Maximum Contributory Earnings} \times \text{CPP Contribution Rate}<br /> \]<br /> \[<br /> = 63,100 \times 0.0595 = 3,754.45<br /> \]<br /><br />Therefore, Veronica's annual maximum second CPP contribution for 2024 would be approximately \$3,754.45. Please ensure to verify the actual rates and figures for 2024 as they may vary.