CANADA PENSION PLAN

Did you know…?  Changes to the way
employers deduct Canada Pension Plan (CPP) contributions are coming into effect
in January 2012.

Important
facts for employers

• Starting January 1, 2012, you must deduct CPP contributions for
  all employees aged 60 to 65-even if the employee is receiving a CPP or Quebec
  Pension Plan (QPP) retirement pension and did not contribute previously.
• You must also deduct CPP contributions for all employees who are
  65 to 70 years of age unless they elect not to contribute to the CPP by giving
  you a signed and completed copy of Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or
  Revocation of a Prior Election. They must also send the
  original to the Canada Revenue Agency (CRA).
• Your employees cannot contribute to the CPP after the month in
  which they turn 70 years of age.

The CRA can assess you for failing to deduct CPP
contributions or for failing to remit CPP contributions to the CRA as required.
The assessment may include penalty and interest charges. For more information, give
us a call to discuss these important changes.