What's New - Powerpay 6.21

CPP deductions are mandatory for all Canadian workers, working outside of Quebec, who are over the age of 18 and under 65, when:

• Employee is in pensionable employment during the year,

• Employee is not considered to be disabled under CPP (they are not receiving a CPP disability pension)

The deductions commence the first pay of the month following the employee's 18th birthday. The date on which contributions stop is dependent on the employee’s age and several other factors. From the ages of 65 to 70, CPP contributions are mandatory until the month following the employee’s 70th birthday unless:

• The employee is receiving a CPP retirement pension AND

• The employee has opted out by filing a form CPT30 with CRA and filed it with both CRA and their employer.

The following messages have been updated in Powerpay:

1. When a non-Quebec employee between the ages of 18 – 70 has their CPP status set to “Exempt from CPP/QPP” the following message displays on the Employee Profile page and the Employee Profile Import page:

   The Birth Date entered for this employee would indicate that the employee’s CPP/QPP Status should not be ‘Exempt from CPP/QPP’.

   Note: An employee is subject to CPP on the first Payment Date in the month following the employee’s 18th birthday.

   An employee is exempt from CPP:

   • if they are under 18, or

   • as of the month following their 70th birthday, or

   • if they are 65 or over, receiving benefits and have supplied the election form to stop contributing to CPP, or

   • they are receiving a Canada disability pension benefit.

QPP deductions are mandatory for all Canadian workers, working in Quebec, who are over the age of 18 and under 65, when:

• Employee is in pensionable employment during the year,

• Employee is not considered to be disabled under QPP (they are not receiving a QPP disability pension)

The deductions commence the first pay of the month following the employee's 18th birthday. The date on which contributions stop is dependent on the employee’s age and several other factors. From the ages of 65 to 72, QPP contributions are mandatory until the year following the employee’s 72nd birthday unless:

• The employee is receiving a QPP retirement pension AND

• The employee has opted out by filing a RR-50-V form with both Revenu Quebec and their employer.

Note: Effective January 1, 2024, employees who are 60 or older and receive both a QPP disability pension and QPP retirement pension must make QPP contributions unless they opt out at age 65. Previously, QPP contributions did not stop regardless of the employee’s age or if they were already receiving QPP retirement benefits.

Powerpay messages have been updated to address the following scenarios:

1. When a Quebec employee between the ages of 18 – 72 has their QPP status set to “Exempt from CPP/QPP”:

   The following message displays on the Employee Profile page and Employee Profile Import page:

   The Birth Date entered for this employee would indicate that the employee’s CPP/QPP Status should not be ‘Exempt from CPP/QPP’.

   Note: An employee is subject to QPP on the first Payment Date in the month following the employee’s 18th birthday.

   An employee is exempt from QPP:

   • if they are under 18, or

   • as of January 1st the year following their 72nd birthday, or

   • if they are 65 or over, receiving benefits and have supplied the election form to stop contributing to QPP, or

   • they are receiving a Quebec disability pension benefit

   The following message displays on the Data Verification page:

   Based on the Birth Date, the following employees are over 18 but are 'Exempt' from QPP. Update the employee’s Birth Date or CPP/QPP Status as required.

   Note: The employee is subject to QPP on the first Payment Date in the month following the employee’s 18th birthday.

   An employee is Exempt from QPP:

   • if they are under 18, or

   • as of January 1st the year following their 72nd birthday, or

   • if they are 65 or over, receiving benefits and have supplied the election form to stop contributing to QPP, or

   • they are receiving a Quebec disability pension benefit

     Note: If the employee is exempt in error, adjustments are required to collect QPP deductions and update the pensionable wage amount. A premium adjustment will not automatically update pensionable wages. For more information see Employee CPP/QPP status not changed at the correct time.

2. When a Quebec employee is 72 or over and should be exempt from QPP deductions as of the year following their 72nd birthday, but their CPP/QPP Status is "Subject to CPP/QPP".

   The following message displays on the Employee Profile page and the Employee Profile Import page:

   Please review the Birth Date to ensure it has been entered accurately. If the date is correct, the employee’s CPP/QPP Status should be ‘Exempt from CPP/QPP’.

   Note: An employee is exempt from QPP on the first Payment Date in the year following the employee’s 72nd birthday.

   The following message displays on the Data Verification page:

   Based on the Birth Date, the following employees turned 72 in the previous year but are ‘Subject to CPP/QPP’. Update the employee’s Birth Date or CPP/QPP Status as required.

   Note: An employee is exempt from QPP on the first Payment Date in the year following the employee’s 72nd birthday.

   Note: If the employee is deducted QPP in error, adjustments are required to refund QPP deductions and update the pensionable wage amount. A premium adjustment will not automatically update pensionable wages. For more information see Employee CPP/QPP status not changed at the correct time.

3. When a Quebec employee has turned or will be turning 72 in the current year, the following message displays on the Data Verification page the month before the First Pay of the following year:

   Based on the Birth Date, the following employees are exempt from QPP on January 1st following their 72nd birthday. Please review the employee’s Birth Date. If it is correct, change the employee's ‘CPP/QPP Status’ on the first pay that has a Payment Date in the following year.

   Note: An employee is exempt from QPP on the first Payment Date in the following year of the employee’s 72nd birthday.