Several employers in Canada have a hard time determining when they need to make deductions from their employees’ pensionable earnings for the Canada Pension Plan (CPP). According to the CRA, you must deduct CPP contributions from an employee’s earnings if they fulfil the following conditions:
- The worker must not be considered disabled under the CPP or the Quebec Pension Plan (QPP).
- The worker should be in pensionable employment during the year.
- The worker should be older than 18 and younger than 69 years of age, even if they are receiving a CPP or QPP retirement pension.