Situations where an employee has to start or stop CPP contribution

As an employer, you have to know the special situations where you have to start or stop deducting an employee's Canada Pension Plan (CPP) contributions. Otherwise, CPP may be under or over deducted.

Start deducting CPP 

Start deducting CPP contributions in the first pay dated in the month after the employee turns 18

Start deducting CPP contributions on the first pay dated in the month after the employee is no longer considered disable under the CPP. 

Stop deducting CPP

Deduct CPP contributions up to and including the last pay dated in the month in which the employee turns 70.

Stop deducting CPP if the employee who is a CPP working beneficiary and opt out CPP using Form CPT30 (How to stop paying CPP)

Deduct CPP contributions up to and including the last pay dated in the month in which the employee becomes or is considered to be disable under the CPP.

Deduct CPP contribution up to and including the last pay dated in the month in which the employee dies.

Who has to pay CPP contributions

The Payroll steps – an employer’s responsibilities with the CRA

CPP Rates and maximums for self-employed 

Additional information