Tax rules for pensionable earnings

Devon from Wagepoint
Devon from Wagepoint
  • Updated

An employee's total pensionable earnings are the sum of their wages, additional incomes, and/or benefits that are subject to CPP/QPP.

While entering prior payrolls or making an adjustment, there may be times when the pensionable earnings total for the year does not equal the sum of all pensionable earnings.

This could be due to:

  • earnings received before and including the month the person turned 18
  • earnings received after the month the person turned 70
  • earnings received after the effective date of the person's completed and signed CPT30 form (to elect to stop contributing to the CPP)
  • earnings received before and including the month where the person provided a completed and signed CPT30 form to restart contributing to the CPP
  • earnings received while the person is considered to be disabled under the CPP or QPP

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