Benefits and payments NOT subject to CPP

Do not deduct CPP contributions from:

• pension payments, lump-sum payments from a pension plan, death benefits, amounts that a trustee allocated under a profit sharing plan or that a trustee paid under a deferred profit sharing plan, and benefits received under a supplementary unemployment benefit  plan (SUBP) that qualifies as a SUBP under the Income Tax Act;
• wage-loss benefits that an employee receives from a wage-loss replacement plan (these benefits may or may not be subject to CPP contributions, go to  Wage-loss replacement plans);
• payments you make after an employee dies, except for amounts the employee earned and was owed before the date of death;
• an advance or a loan equal to a workers' compensation award you pay to an employee, before or after the workers' compensation board claim is decided (for more information, go to Workers compensation award);
• amounts for the residence of a clergy member if he or she receives a tax deduction for the residence; and
• amounts received on account of an earnings loss benefit, supplementary retirement benefit or permanent impairment allowance payable to the tax payer under Part 2 of the Canadian Forces Members and Veterans Re-establishment and Compensation Act.

For information on situations when CPP contributions are required, go to Amounts and benefits subject to CPP contributions.

If you are not sure whether you should deduct CPP after reading these pages, you can request a ruling.

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