## 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.

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