Did you know…? Changes to the way employers deduct Canada Pension Plan (CPP) contributions are coming into effect 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.
The CRA can assess you for failing to deduct CPP contributions or for failing to remit CPP contributions to the CRA as required. The assessment may include penalty and interest charges.
For information about what the changes will mean for employers, click here.
For the full suite of tools and information explaining the CPP changes for individuals aged 60 to 70, visit Changes to the Canada Pension Plan (CPP).
For general information, visit www.canadabusiness.ca.