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Learning Objectives

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Membership or participation in the Canada Pension Plan (CPP) and Employment Insurance +Plan (EI) is compulsory for certain types of employment. As a person responsible for the payroll +you need to know which employees must participate in these plans, what amounts to withhold +from employees and how much the employer will have to remit or send to the Canada +Revenue Agency (CRA).

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Learning Objectives

Upon completion of this chapter, you should be able to explain:

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  1. Calculate Canada Pension Plan contributions at an individual level

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5.1. Canada Pension Plan

The Canada Pension Plan (CPP) is a federally legislated social insurance program established under the Canada Pension Plan Act. Its primary purpose is to provide financial protection to contributors and their families in the event of retirement, disability, or death. The program is funded through mandatory payroll deductions from employees, which are matched equally by @@ -105,7 +108,11 @@ employers. These employee contributions are specifically referred to as Canada P deductions from employees. The specific payroll withholding requirements for these supplementary pension plans will be discussed in more detail in the later chapters; it is important to note that the CPP is often one of multiple retirement savings vehicles available within an organization’s compensation structure.

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Note

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Employers located in Quebec are responsible for deducting Québec Pension Plan (QPP) contributions, instead +of CPP contributions, from their Québec employees and remitting those contributions to Revenu Québec (RQ).

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6. Employment Insurance

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  • Calculate Employment Insurance premiums at an individual level