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Flashcards in CPP Deck (15)
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1

when do you deduct CPP?

employee is 18 - 70 years old
and has pensionable income

2

when do you not deduct CPP?

when you receive a CPT30 Election to stop

3

do you deduct CPP from pension payments?

no
see page 14

4

what is the current rate for CPP?

4.95%

5

What is the employer portion

same as employees

6

what is the maximum pensionable earnings for 2014

$52,500

7

What is the maximum contribution for 2014

$2,425.5
(52,500 - 3,500) 4.95%

8

what happens if you have a new employee

you do not take into consideration what they already paid in CPP / Income was

9

What happens if there is an overpayment of CPP - Employee

employee will be refunded when they file their income tax return

10

What happens if there is an overpayment of CPP - employer

no provision CPP that allows them to refund or credit the employer in these circumstances

11

when an employee turns 18 what do you do?

Prorate the CPP

12

Ex. Brent turns 18 on June 15, 2013. he receives $1000 every 2 weeks (26,000 / year). this amount is less than the max pensionable earnings subject to CPP.
calculate Brent's maximum CPP contribution for 2013

(51,100 - 3500) x 6/12 x 4.95%
= 1178.10

13

how do you calculate the basic exemption to determine amount to deduct for each pay period for a proration?

use Appendix 2

14

how do you determine the basic exemtion amount for CPP for commissions paid at irregular intervals

you have to prorate the basic exmption amount for the number days in the year b/w the commission payments to determine the max contribution amount

15

CPP & commissions paid at irregular intervals example:
Sylvie, your employee works on commission. YOu pay her only when she sells something. on june 1, 2013, you paid her a $1,800 commission. the alst time you paid her a commission was march16, 2013. there are 76 days b/w the two commissions

Step1: prorate the basic year exemption
(76 / 365 (days) x 3,500 =728.76

Step 2: you have to deduct CPP of
1,800 -728.76 = 1071.24

step 3: 1071.24 x 4.95% =$53.03