New CPP rules for employees 65 and older

Do you have employees who are 65 and older? Did you know that you are now required to deduct CPP on their earnings unless an election is filed?

In the past, once an employee started collecting CPP one no longer had to contribute CPP. This is no longer the case. Employees aged 60 to 65 must continue to contribute to CPP regardless of whether they are receiving CPP benefits.

Employees aged 65 to 70 are also required to contribute to CPP unless they complete Form CPT30, Election to Stop Contributing to the Canada Pension Plan. This election takes effect the first day of the following month it is filed. The form must be submitted to the Canada Revenue Agency (CRA) and a copy must be given to the employer.

For more information visit the CRA website at: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/cpp-rpc/cpp-menu-eng.html