Canada Pension Plan (CPP) will be implementing a series of changes effective in 2012. If you are responsible for preparing payroll cheques, here are the changes you should be aware of regarding the withholding of CPP contributions for employees between the ages of 60 and 70.
Starting in 2012, if an employee is under age 65 and works in Canada while receiving CPP retirement pension, the employee and the employer will have to make CPP contributions. In other words, the contributions are mandatory.
Between the ages of 65 and 70, an employee can either choose to make contributions or opt out. If the employee choose to make contributions, the employer will aslo have to contribute.
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