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CanadianPayroll/docs/source/cpp-and-ei.rst
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CANADA PENSION PLAN AND EMPLOYMENT INSURANCE
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**Learning Objectives**
Upon completion of this chapter, you should be able to explain:
1. The requirements and calculations for Canada Pension Plan contributions
2. The requirements and calculations for Employment Insurance premiums
3. What Service Canada uses the information on a Record of Employment for
This chapter will cover the following topics:
1. Identify the following Canada Pension Plan components:
- Who must contribute to the Canada Pension Plan
- Types of employment subject to Canada Pension Plan contributions
- Types of employment not subject to Canada Pension Plan contributions
- Payments and benefits subject to Canada Pension Plan contributions
- Payments and benefits not subject to Canada Pension Plan contributions
2. Calculate Canada Pension Plan contributions at an individual level
3. Identify the following Employment Insurance components:
- Who must pay Employment Insurance premiums
- Types of employment subject to Employment Insurance premiums
- Types of employment not subject to Employment Insurance premiums
- Payments and benefits subject to Employment Insurance premiums
- Payments and benefits not subject to Employment Insurance premiums
4. Calculate Employment Insurance premiums at an individual level
5. Describe the purpose of a Record of Employment
6. Identify when the Record of Employment must be completed
Canada Pension Plan
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Objective of this section is to enable you to identify the following Canada Pension Plan components:
- Who must contribute to the Canada Pension Plan
- Types of employment subject to Canada Pension Plan contributions
- Types of employment not subject to Canada Pension Plan contributions
- Payments and benefits subject to Canada Pension Plan contributions
- Payments and benefits not subject to Canada Pension Plan contributions
- Calculate Canada Pension Plan contributions at an individual level
Canada Pension Plan
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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
employers. These employee contributions are specifically referred to as Canada Pension Plan contributions.
In addition to the CPP, employers may offer private or non-government pension plans, which may also involve payroll
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.
Employment Insurance
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Objective of this section is to enable you to identify the following Employment Insurance components:
- Who must pay Employment Insurance premiums
- Types of employment subject to Employment Insurance premiums
- Types of employment not subject to Employment Insurance premiums
- Payments and benefits subject to Employment Insurance premiums
- Payments and benefits not subject to Employment Insurance premiums
- Calculate Employment Insurance premiums at an individual level
Record of Employment
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