Question

Canada.Payroll.

In May of the current year, your employer received a PIER report from the CRA that identified Canada Pension Plan (CPP) contribution deficiencies for employees in the organization who:

• turned 18 during the year
• turned 70 during the year
• had chosen to opt out of paying CPP by submitting a completed CPT30 form

To avoid a recurrence, the Payroll Manager, Andreea Sinclair, has asked you to prepare a summary of the CPP reporting requirements on T4 information slips. The summary will be used to validate the current payroll setup to ensure that the T4s will be completed properly in future. Provide information on the CPP related boxes that must be completed, including how any amounts are calculated, for employees who:

• are under 18 for the entire year
• turn 18 during the year
• are over 70 for the entire year
• turn 70 during the year
• submit a completed CPT30 form during the year, electing to stop contributing to the Canada Pension Plan
• submit a completed CPT30 form during the year, revoking their previous election to stop contributing to the Canada Pension Plan

Answer 1

Refer the below images for the above mentioned questions, in a detailed way of explanation.

Answer: cpp Reporting Requirements on T4 Information Slips and use the letter x in the appropriate section of Box 28 it the employee is exempt from contribution for clapp premium IT throughout the year if the situation is chosen as an exception to the contribution to the clapp (ar) El Premium, the occurrence value should be "zero" in the app retirement income (Box 26) and/or Et on certain income (Box 24) Excluding contributions for the app (Box 16) and/or El premiom (Box 18). If and the employer reaches retirement benefits the are age of 18 per year, calculated from the contributions first Similarly, if the contributions are the age of 70. employee suspended beaches from the the age of first to year app payment after If the employee is considered disabled under the Canadian pension plan cor) Regie des Rentes do Quebec, then the deduction must be deducted from the first payment of the month following the month the employee es considered disabled. It employee begins collecting app retirement age is over 65 and Sumbits to cp130-voting to stop canada pension plan Contribution (or) cancel pre-voking form on the first payroll after the month in which the employer received the completed form.

* app Contributions are not suspended if the employee is to cor) when he/she receives a pension but will be suspended when the employee is considered disabled by the canada pension plan cov) the Regie des ventes du Quebec on the cpp Sector that needs to be properly Information filled. * The following fields must be completed correctly Report of the app as reported in Box 16. Retirement income is listed in Box 26. Employee exemption from cpp contribution in Box 28. Amant is calculated : CPP Staft contributions reported in Bor 16 most be equal to the retirement income reported in Box 26, reduced by annual exemptions, moltipted by the corrent contre ratt and maximum annual contribution The Formula for deriving & Capp pensionable earnings exemption for the year) & the same is as follows: shown on Tu slip - cpp basic Applicable app contribution rate for the year y.