Canada Pension Plan - Payroll Deductions

The Canada Pension Plan Act and its Regulations establish a contributory, earnings-related social insurance program. It protects a contributor and his or her family against the loss of income due to retirement, disability and death. The CPP operates in all provinces, although Quebec operates its own similar program (Quebec Pension Plan ).

An employer must deduct an employee's contribution, and remit that amount together with the employer's contribution to the Canada Revenue Agency (CRA). The amounts to remit are set out in the Act and in the Calculation of Contribution Rates Regulations. There are penalties for non-compliance.  

The CRA offers payroll deduction tables that contain information to help you calculate CPP contributions. They are available in paper format, on diskette or electronically through your Tax Service Office. 

For more information on the above, please contact a Business Enquiries of the CRA (see Related Reading: Business Window - Supplement or CRA's Web site for a list of addresses).