November 28th, 2011
This is an important reminder of the CPP changes coming on January 1st 2012. ¬†We’ve had over a year to prepare for them, but it’s a good idea to read about these changes again to make sure you’ve got it all covered.
Here’s a good place to start: ¬†www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/clcltng/cpp-rpc/cppchng-wh-eng.html
Be sure to catch this:
Under the new rules, an employee who works¬†and receives a CPP or QPP retirement pension will now have to contribute to the CPP if he or she is:
- 60 to 65 years of age;
- 65 to 70 years of age,¬†unless the employee has filed an election with you or another employer to¬†stop paying CPP contributions (the election will take effect on the first day of the month following the month the employee provides you with a completed and signed election form);
- 65 to 70 years of age, if the employee revoked his or her election to stop paying CPP contributions in 2013 or later.
Employers, be proactive and check with your employees ahead of time. ¬†If they are ¬†65 or over, do they want to pay into the CPP or not? ¬†Get the elections in place.Filed under: Business tax, Personal Tax by David Boese 1 Comment »