Non-Pensionable Earnings and Underpaid CPP Contributions

There are some types of employment payments and other payments from which CPP or QPP contributions do not have to be deducted. Also, if a person has more than one employer in the year and earns total employment income which is less than the maximum pensionable earnings, this will have the result that the basic exemption used to withhold CPP or QPP contributions is more than $3,500, resulting in an underpayment of contributions. There is no obligation to remit the underpaid amount, but a person can elect to do so, or to pay Canada Pension Plan contributions on certain types of income from which no CPP contributions have been deducted.

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