Half-year rule

The half-year rue restricts the capital cost allowance (CCA) on net acquisitions (consisting of additions for the year less the lesser of original cost and proceeds of disposition for the year) in the year to one-half of the normal claim.

Basic CPP exemption for various pay periods

When you are calculating an employee’s CPP contribution, you have to prorate the basic CPP exemption. The following table shows the prorated amount of basic CPP exemption for various pay periods.

What to do if you under deduct CPP contributions

As an employer, in some cases, you may under deduct an employee’s CPP contributions. Once the CRA discovers the deficiency, they will issue you a notice of assessment and you are responsible for remitting the balance due including both the employer’s and employee’s shares.