Starting and stopping CPP deductions

There may be special situations where you may have to start or stop deducting CPP in the year for a particular employee. In these situations, you also have to prorate the maximum CPP contribution for the year to make sure you have not overdeducted.

Note
In some cases, the requirements are different for QPP. For information, see the publication TP-1015.G-V, Guide for Employers: Source Deductions and Contributions, which you can get from Revenu Québec.

Special situations

Your employee turns 18 in the year - Start deducting CPP contributions in the first pay dated in the month after the employee turns 18. When you prorate, use the number of months after the month the employee turns 18 (see example 1);

Your employee turns 70 in the year - Deduct CPP contributions up to and including the last pay dated in the month in which the employee turns 70. When you prorate, use the number of months up to and including the month the employee turns 70 (see example 2);

Your employee is receiving a CPP or QPP retirement pension - For details, see Employees who are 60 to 70 years of age.

Your employee is considered to be disabled under the CPP - Deduct CPP contributions up to and including the last pay dated in the month in which the employee is considered to be disabled. When prorating, use the number of months up to and including the month the employee was considered to be disabled.

Note
If the employee is no longer considered disabled under the CPP, start deducting CPP contributions on the first pay dated in the month after the employee is no longer considered disabled. When prorating, use the number of months after the month the employee ceased to be disabled.

Your employee dies in the year - Deduct CPP contributions up to and including the last pay dated in the month in which the employee dies. Also deduct CPP contributions from any amounts and benefits that are earned or owed to the employee on the date of death. When prorating, use the number of months up to and including the month of death.

Note
If any of these special situations apply to your employees, you may need to prorate their contributions for the year. For more information, see Checking the amount of CPP you deducted.

Related Topics

• Employees who are 60 to 70 years of age
• Checking the amount of CPP you deducted