Cookie Consent
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with social media, advertising and analytics partners. NPI Cookie Policy
CPP Decision Tool
CPP Decision Tool
Is Your Employee Subject to The CPP Changes Of Bill C-51?
Effective January 1, 2012, your employee may be subject to the Canada Pension Plan (CPP) changes brought forth by Bill C-51. CPP contributions may need to restart for some employees who are in receipt of a CPP/QPP retirement pension. Answer the following questions to find out if these changes apply to your employee(s).
For more details and examples on the C-51 CPP changes, please refer to the CPA’s CPP Changes Guidelines.
1. Is your employee’s pay subject to the Canada Pension Plan (CPP) or to the Quebec Pension Plan (QPP)? Please refer to the CPA’s Province of Employment Guidelines(PDF) if unsure.
1. Is your employee’s pay subject to the Canada Pension Plan (CPP) or to the Quebec Pension Plan (QPP)? Please refer to the CPA’s Province of Employment Guidelines(PDF) if unsure.
Answer:
The changes to the Canada Pension Plan (CPP) do not apply to your employee. Continue to follow the Quebec Pension Plan (QPP) legislation.
2. Is your employee in receipt of a CPP/QPP disability pension?
2. Is your employee in receipt of a CPP/QPP disability pension?
Answer:
This employee is not affected by the CPP changes. CPP contributions stop the beginning of the month after the employee is considered disabled under CPP/QPP.
Example
Marie is considered disabled under the CPP as of June of this year, even though she will not begin receiving her CPP disability pension until October due to the waiting period. On July 5, her employer will be paying her final hours worked in June before becoming disabled, as well as some sick days and outstanding vacation pay. No CPP should be deducted for this pay period since it has a pay date of after June. CPP deductions do not restart until the employee is no longer considered disabled under the CPP/QPP.
3. Is this employee under 18 years of age?
3. Is this employee under 18 years of age?
Answer:
This employee is not affected by the CPP changes. CPP deductions should start effective the first pay dated on or after the first of the month following the employee’s 18th birthday.
Example
George turns 18 on June 27. CPP deductions begin on the first pay period with a pay date of July 1 or later of that same year, even if this pay period includes days worked prior to George’s 18th birthday. (CPP contributions are calculated on the entire pay period as long as the pay date falls after the month the employee turns 18 years of age.)
4. Is this employee at least 18 but under 60 years of age?
4. Is this employee at least 18 but under 60 years of age?
Answer:
This employee is not affected by the CPP changes. CPP deductions should start effective the first pay dated on or after the first of the month following the employee’s 18th birthday.
5. Is this employee:
5. Is this employee:
Answer:
This employee is not affected by the CPP changes. CPP deductions should have ended the month following the month the employee turned 70 years of age.
Example
Gabrielle turned 70 years of age on February 14. As a result, no pay period with a pay date later than February should have CPP contributions withheld.
6. Is this employee (at least 60 but under 65 years of age) in receipt of a CPP/QPP retirement pension?
6. Is this employee (at least 60 but under 65 years of age) in receipt of a CPP/QPP retirement pension?
Answer:
This employee is not currently affected by the CPP changes. CPP contributions must continue until the employee either:
- turns 65 years of age and files an election to stop CPP contributions; or
- turns 70 years of age.
Example:
Suzanne is 62 years old and has been in receipt of a CPP retirement pension for two years. If Suzanne works in pensionable employment CPP contributions must be withheld and remitted until at least age 65 at which time they may file an election to stop CPP contributions. The employer must continue to withhold CPP contributions until the employee submits an election or reaches age 70.
This employee is not currently affected by the CPP changes. CPP contributions must continue until the employee either:
- turns 65 years of age, begins to receive a CPP/QPP retirement pension and files an election to stop CPP contributions; or
- turns 70 years of age.
7. Is this employee (at least 65 but under 70 years of age) in receipt of a CPP/QPP retirement pension?
7. Is this employee (at least 65 but under 70 years of age) in receipt of a CPP/QPP retirement pension?
Answer:
This employee is eligible to file an election to stop CPP contributions. However, CPP contributions must continue until the employee either:
- files an election to stop CPP contributions; or
- turns 70 years of age
Example
Marc is 66 years of age and has been in receipt of a CPP retirement pension since last year. Marc has not filed an election to stop CPP contributions. The employer must continue to withhold and remit CPP contributions until Marc provides an election to stop CPP contributions, or turns age 70.
This employee is not currently affected by the CPP changes. CPP contributions must continue until the employee either:
- until the employee begins to receive a CPP/QPP retirement pension and files an application to cease CPP contributions; or
- turns 70 years of age.