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Canada Pension Plan Deductions and Contributions (CPP)

You are also responsible for deducting CPP contributions from your employee's remuneration in the following circumstances if the employee:
  • is 18 years or older, but younger than 70;
  • is in pensionable employment during the year;
  • is not considered to be disabled under CPP; and
  • has not filed an election form CPT30.  Form CPT30 may be filed by an employee who is between the ages of 65 and 70 years.  Those employees may elect to stop contributing to the Canada Pension Plan. 
 
In contrast to the income tax contributions, you also must contribute an equal amount of CPP that is deducted from each of your employees.
 
For example:
 
CPP contributions deducted from the employee in the month
$240
Your share of the CPP contributions
$240
Total amount you remit for CPP
$480
 
You will generally deduct CPP contributions from the following amounts and benefits: 
  • salary, wages, commissions, including advances and wages in lieu of termination notice;
  • cash and non-cash taxable benefits and allowances, with exceptions; and
  • honorariums from employment, a share of profit that an employer paid, incentive payments, director’s fees, management fees, etc. 
 
See the CRA website for a complete listing and also for the list of benefits and payments not subject to CPP contributions.
 
Each year the government sets a maximum pensionable earnings amount from which you deduct CPP and a basic exemption which is the base amount from which you do not deduct CPP contributions.  For example, in 2022, an employer would stop deducting CPP contributions when you reach the employee's pensionable earnings amount, which is $64,900 or the maximum employee contribution for the year, which is $3,499.80. You can also use the payroll deduction tables to calculate the CPP deduction.