CPP / QPP premiums
Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) deductions commence the first pay of the month following the employee's 18th birthday.
Effective
CPP premiums
Unless in receipt of a CPP/QPP disability pension, employees between the ages 60 and 65 must make CPP contributions. If they are between 65 and 70 they must make CPP contributions unless they are receiving a CPP/QPP retirement pension and have opted out by filing a form CPT30-(11) with CRA and filed it with both CRA and their employer.
QPP premiums
- Do not stop after the employee turns 70.
- Are payable even after the employee starts receiving QPP retirement benefits.
When to pay CPP / QPP
| Description | Under 18 | 18 to 60 | 60 to 65 | 65 to 70 | 70 and over | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| CPP | QPP | CPP | QPP | CPP | QPP | CPP | QPP | CPP | QPP | |
|
If not disabled and not receiving CPP/QPP retirement pension |
N | N | Y | Y | Y | Y | Y | Y | N | Y |
|
If considered disabled under CPP/QPP |
N | N | N | N | N | N | N | N | N | N |
|
If in receipt of CPP/QPP retirement pension |
N/A | N/A | N/A | N/A | Y | Y | Y* | Y | N | Y |
*Unless the employee has filed a CPT30 election to stop CPP contributions with CRA and the employer. Anyone between 65 and 70 will not automatically show as exempt on the Tax Form as Ceridian does not know if the employee has completed a CPT30. This is correct by CRA standards.
Note: The employee’s tax form will not display exempt for CPP/QPP if they are exempt due to the completion of the CPT30 form. Revenue Canada and Revenu Quebec are aware of this. If the employee's name appears on a PIER report from either government agency, you must inform them the employee competed a CPT30 form.
For more information visit CRA at www.cra-arc.gc.ca and search for CPP changes.
For more information about QPIP and how it works for an employee, visit www.rqap.gouv.qc.ca/index_en.asp