Changes to Canada Pension Plan
Did you know:
- If you have employees under the age of 65 who are working while collecting CPP benefits, both you and your employees are required to make CPP contributions.
- This also applies to those who are self-employed, under the age of 65 and drawing CPP benefits. They will also be required to start paying both the employer and the employee portion of CPP premiums.
For employees between the ages of 65 and 70 who are working while collecting CPP benefits, employee contributions are voluntary. However, to stop contributing, the employee must provide you with a completed and signed copy of the CPT30 form (Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election). In cases where your employees between 65 and 70 are contributing to CPP, you will also have to make CPP contributions. If the employee continues to work but not collect CPP benefits they do not have the option to opt out.
These contributions will allow employees to continue building their CPP Post-Retirement Benefit (PRB), even if they are already receiving the maximum amount of CPP retirement pension.
Do not deduct CPP contributions from the salary and wages that you pay for:
- Employees considered to be disabled under the CPP or QPP
- Employees having reached 70 years of age.
- Employees working in Quebec and other workers not subject to the CPP
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|Should you believe the above may apply to you or your business, please contact Business Resources for more information at 1-888-234-2232. Certain exceptions could apply to your situation and may require the advice of an accountant or lawyer.|