Canada Pension Plan (CPP)
You have to deduct Canada Pension Plan (CPP) contributions from an employee's remuneration if that employee:
- is in pensionable employment during the year; and
- is not considered to be disabled under the CPP or Quebec Pension Plan (QPP);
- is 18 years of age or older but under 65 (even if the employee is 60 years of age or over, and in receipt of a CPP or QPP retirement pension); or
- is 65 to 70 years of age, and has not given you a completed election Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election to stop deducting CPP contributions from his/her earnings and the employee is in receipt of a CPP or QPP retirement pension.
Use the CPP contributions rates, maximums and exemptions chart to determine how much CPP contributions to deduct.
As an employer, you must also contribute the same amount of CPP that you deduct from your employees' remuneration.
Quebec employers deduct Quebec Pension Plan (QPP) contributions instead of CPP contributions. For information, see Revenu Québec.
Forms and publications
- Guide T4001, Employers' Guide - Payroll Deductions and Remittances
- Guide T4130, Employers' Guide - Taxable Benefits and Allowances
- Guide T4032, Payroll Deductions Tables
- Guide T4008, Payroll Deductions Supplementary Tables
- Guide T4127, Payroll Deductions Formulas for Computer Programs
- Other publications for Canada Pension Plan and Employment Insurance (CPP/EI)
- Canada's social security agreements with other countries
- CRA's and HRSDC's responsibilities for the administration of the CPP and the EI Act
- Canada Pension Plan and Old Age Security (Human Resources and Skills Development Canada)
- Video: Changes to the Canada Pension Plan effective January 1, 2012 (63:36 min.) (high-speed version)
- Video series: Payroll Information for a New Small Business
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