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<li class="nav-item nav-item-this"><a href=""><span class="section-number">5. </span>Canada Pension Plan</a></li>
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<p>Membership or participation in the Canada Pension Plan (CPP) and Employment Insurance
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Plan (EI) is compulsory for certain types of employment. As a person responsible for the payroll
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you need to know which employees must participate in these plans, what amounts to withhold
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from employees and how much the employer will have to remit or send to the Canada
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Revenue Agency (CRA).</p>
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<p><strong>Learning Objectives</strong></p>
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<p>Upon completion of this chapter, you should be able to explain:</p>
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<blockquote>
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<div><ol class="arabic simple">
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<li><p>The requirements and calculations for Canada Pension Plan contributions</p></li>
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<li><p>The requirements and calculations for Employment Insurance premiums</p></li>
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<li><p>What Service Canada uses the information on a Record of Employment for</p></li>
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</ol>
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</div></blockquote>
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<p>This chapter will cover the following topics:</p>
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<blockquote>
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<div><ol class="arabic simple">
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<li><p>Identify the following Canada Pension Plan components:</p></li>
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</ol>
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<blockquote>
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<div><ul class="simple">
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<li><p>Who must contribute to the Canada Pension Plan</p></li>
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<li><p>Types of employment subject to Canada Pension Plan contributions</p></li>
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<li><p>Types of employment not subject to Canada Pension Plan contributions</p></li>
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<li><p>Payments and benefits subject to Canada Pension Plan contributions</p></li>
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<li><p>Payments and benefits not subject to Canada Pension Plan contributions</p></li>
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</ul>
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</div></blockquote>
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<ol class="arabic simple" start="2">
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<li><p>Calculate Canada Pension Plan contributions at an individual level</p></li>
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<li><p>Identify the following Employment Insurance components:</p></li>
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</ol>
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<blockquote>
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<div><ul class="simple">
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<li><p>Who must pay Employment Insurance premiums</p></li>
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<li><p>Types of employment subject to Employment Insurance premiums</p></li>
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<li><p>Types of employment not subject to Employment Insurance premiums</p></li>
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<li><p>Payments and benefits subject to Employment Insurance premiums</p></li>
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<li><p>Payments and benefits not subject to Employment Insurance premiums</p></li>
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</ul>
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</div></blockquote>
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<ol class="arabic simple" start="4">
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<li><p>Calculate Employment Insurance premiums at an individual level</p></li>
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<li><p>Describe the purpose of a Record of Employment</p></li>
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<li><p>Identify when the Record of Employment must be completed</p></li>
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</ol>
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</div></blockquote>
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<section id="canada-pension-plan">
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<h1><span class="section-number">5. </span>Canada Pension Plan<a class="headerlink" href="#canada-pension-plan" title="Link to this heading">¶</a></h1>
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<p>Objective of this section is to enable you to identify the following Canada Pension Plan components:</p>
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<blockquote>
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<div><ul class="simple">
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<li><p>Who must contribute to the Canada Pension Plan</p></li>
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<li><p>Types of employment subject to Canada Pension Plan contributions</p></li>
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<li><p>Types of employment not subject to Canada Pension Plan contributions</p></li>
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<li><p>Payments and benefits subject to Canada Pension Plan contributions</p></li>
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<li><p>Payments and benefits not subject to Canada Pension Plan contributions</p></li>
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<li><p>Calculate Canada Pension Plan contributions at an individual level</p></li>
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</ul>
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</div></blockquote>
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<p>The <strong>Canada Pension Plan</strong> (CPP) is a federally legislated social insurance program established under the Canada Pension Plan
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Act. Its primary purpose is to provide financial protection to contributors and their families in the event of retirement,
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disability, or death. The program is funded through mandatory payroll deductions from employees, which are matched equally by
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employers. These employee contributions are specifically referred to as Canada Pension Plan contributions.</p>
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<p>In addition to the CPP, employers may offer private or non-government pension plans, which may also involve payroll
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deductions from employees. The specific payroll withholding requirements for these supplementary pension plans will be discussed
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in more detail in the later chapters; it is important to note that the CPP is often one of multiple retirement savings
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vehicles available within an organization’s compensation structure.</p>
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<div class="admonition note">
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<p class="admonition-title">Note</p>
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<p>Employers located in Quebec are responsible for deducting Québec Pension Plan (QPP) contributions, instead
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of CPP contributions, from their Québec employees and remitting those contributions to Revenu Québec (RQ).</p>
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</div>
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</section>
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<section id="employment-insurance">
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<h1><span class="section-number">6. </span>Employment Insurance<a class="headerlink" href="#employment-insurance" title="Link to this heading">¶</a></h1>
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<p>Objective of this section is to enable you to identify the following Employment Insurance components:</p>
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<blockquote>
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<div><ul class="simple">
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<li><p>Who must pay Employment Insurance premiums</p></li>
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<li><p>Types of employment subject to Employment Insurance premiums</p></li>
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<li><p>Types of employment not subject to Employment Insurance premiums</p></li>
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<li><p>Payments and benefits subject to Employment Insurance premiums</p></li>
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<li><p>Payments and benefits not subject to Employment Insurance premiums</p></li>
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<li><p>Calculate Employment Insurance premiums at an individual level</p></li>
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</ul>
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</div></blockquote>
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<p>Employment Insurance (EI) is a federally legislated social insurance program established under the Employment Insurance Act.
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It provides temporary financial support to individuals who are unemployed while seeking new employment or engaging in skill
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development. In addition to regular benefits, EI offers special provisions for workers who take leave due to significant life
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events such as illness, pregnancy, caring for a newborn or newly adopted child, supporting a critically ill or injured person,
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or tending to a family member facing a serious health condition with a risk of death.</p>
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<p>The EI program is funded through payroll contributions made by employees, known as Employment Insurance premiums. Employers
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also contribute by paying a premium that is calculated based on their employees’ deductions.</p>
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<p>While Employment Insurance is a government-mandated program, it may not be the only insurance plan available in the workplace.
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Many organizations offer private or non-government insurance options such as life and disability coverage, which are funded by
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employers, employees, or both. Although this chapter focuses specifically on the federally legislated EI program, additional
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information about private insurance plans will be covered in the later chapters.</p>
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</section>
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<section id="record-of-employment">
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<h1><span class="section-number">7. </span>Record of Employment<a class="headerlink" href="#record-of-employment" title="Link to this heading">¶</a></h1>
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<h3><a href="index.html">Table of Contents</a></h3>
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<ul>
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<li><a class="reference internal" href="#">5. Canada Pension Plan</a></li>
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<li><a class="reference internal" href="#employment-insurance">6. Employment Insurance</a></li>
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<li><a class="reference internal" href="#record-of-employment">7. Record of Employment</a></li>
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