5.9 CPP Deductions and Contributions

You have to deduct CPP contributions from an employee's remuneration if that employee is

  • 18 years or older, but younger than 70,
  • is in pensionable employment during the year,
  • is not considered to be disabled under CPP and
  • does not receive a CPP retirement or disability pension.

You also must contribute the same amount of CPP that is deducted from your employee.
For example:

CPP contributions deducted from employee in the month

$220

Your share of the CPP contributions

$220

Total amount you remit for CPP

$440


You generally deduct CPP contributions from the following amounts:

  • salary, wages, commissions, including advances and wages in lieu of termination,
  • any share of profits or other incentive payments and
  • remuneration received while retired, on vacation, sabbatical, sick leave, or any supplementary unemployment benefit plans (e.g., parental leave top-up).

Each year the government sets a maximum pensionable earning amount and a rate to calculate the CPP deduction. For example, in 2017, you stop deducting CPP contributions when you reach the employee's pensionable earning amount, which is $55,300 or the maximum employee contribution for the year, which is $2,564.10. You can also use the payroll deduction tables to calculate the CPP deduction.

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Last modified: Wednesday, 18 January 2017, 8:47 AM