Tag Archives: CPP

New CRA guidance on Wage Loss Replacement Plans

Many of you may have noticed the late release of the T4001 Employers’ Guide for 2014. One reason for this might be the expanded guidance the CRA posted on its web site, in the CPP/EI rulings area, on December 17, … Continue reading

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Further QPP rule changes on employee transfers into Quebec

The Canada Pension Plan and its Quebec equivalent, the QPP, have always been broadly similar. For example, until recently contribution rates and maximum annual contributions have been the same under both plans. That changed in 2012, when the Quebec government … Continue reading

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How does moving in or out of Quebec affect CPP/QPP YTD maximums?

It used to be that CPP and QPP were seen, at least for source deduction purposes, as being identical. While that was never wholly true, in recent years the differences between these two have markedly increased. One of these differences … Continue reading

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Who Must Report Sales Awards – the Manufacturer or the Employer?

Prizes are a common tool for manufacturers to promote the sale of their products, in both wholesale and retail sales and distribution. So long as these awards are somehow tied to employee performance, they are taxable income which must be … Continue reading

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The risks of treating employees as self-employed contractors

The CBC reported this week that Shaw Communications was found to have broken the federal Canada Labour Code, in relation to two persons who formerly worked at one of its smaller Vancouver business units. The business unit treated the two … Continue reading

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Banked Overtime – When must source deductions be taken?

Banked overtime is a common payroll practice. When overtime is banked, the issues that arise usually deal with whether dollars or time are banked, how long overtime may be kept in the bank and the rate at which banked overtime … Continue reading

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When do earnings stop being pensionable and insurable?

The CRA asserts that earnings don’t stop being CPP pensionable or EI insurable, just because the employment relationship is over. My experience is that most payroll practitioners follow logic something like this to determine if CPP or EI source deductions … Continue reading

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Changing payroll frequency may impact CPP contributions

There is no greater change in payroll than a change in payroll frequency, so changes that affect how and when employees get paid must be handled with special care. Mid-year changes in payroll frequency can affect the amount of CPP … Continue reading

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Principles of HR/Payroll system design

HR and payroll are linked together by the transactions that mark an employee’s history with the employer. Some of these transactions relate to changes in employees status, while others affect the earnings and deductions required in payroll. If HR and … Continue reading

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Increased incentives for delaying CPP retirement pensions

The federal government, acting in concert with the provinces, has recently made a series of changes to incentives that seek to delay employees taking their CPP retirement pensions, until at least age 65. In part, these changes were brought on … Continue reading

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