Final answer:
To calculate Larry's CPP contribution for 2022, one must know the year's CPP contribution rate and YMPE. The contribution amount is calculated by subtracting the basic exemption from earned income, then multiplying by the contribution rate, up to the limit imposed by the YMPE.
Step-by-step explanation:
Larry had $67,000 of earned income in 2022, and to determine the amount of Larry's Canada Pension Plan (CPP) contribution for that year, one would need to know the year's contribution rate and the Year's Maximum Pensionable Earnings (YMPE). Unfortunately, without the specific rate and YMPE for 2022, it is impossible to calculate the exact contribution amount. It typically involves subtracting the basic exemption amount from earned income, then multiplying the remainder by the contribution rate up to the maximum limit set by the YMPE.
For example, if the YMPE is $60,000 and the contribution rate is 5%, Larry would contribute 5% of the difference between $60,000 and the basic exemption amount (if any). If Larry's earned income exceeded the YMPE, his contribution would be capped at 5% of the YMPE minus the basic exemption.