Employers: Expect Canada Pension Plan changes in January 2012

Important facts for employers

Starting January 1, 2012, you must deduct CPP contributions for all employees aged 60 to 65-even if the employee is receiving a CPP or Quebec Pension Plan (QPP) retirement pension and did not contribute previously.

You must also deduct CPP contributions for all employees who are 65 to 70 years of age unless they elect not to contribute to the CPP by giving you a signed and completed copy of Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election. They must also send the original to the Canada Revenue Agency (CRA).

Your employees cannot contribute to the CPP after the month in which they turn 70 years of age.

Leave a Reply

Your email address will not be published. Required fields are marked *