Canada Pension Plan Regulations (C.R.C., c. 385)

• 5.1 (1) Subject to paragraph (3), for the year 2024 and each subsequent year, the amount of an employee’s second additional contribution to be deducted by their employer from a payment of remuneration paid to the employee in a year shall be determined in accordance with subsection (2) when the result of the following formula exceeds zero:

  (A + B) − C

  where

  A

  is the payment of remuneration that the employer pays to the employee;

  B

  is the total remuneration paid by the employer to that employee for the year up to the date of the payment; and

  C

  is the greater of

  • (a) the total of the remuneration paid by the employer to that employee for the year up to the date of the payment; and

  • (b) the amount of the employee’s maximum pensionable earnings for the year.

• (2) The amount of the employee’s second additional contribution is determined by using the following formula and rounding the result to the nearest multiple of $0.01 or, if that result is equidistant from two such multiples, to the higher of them:

  E × F

  where

  E

  is the result of the calculation as set out under subsection (1); and

  F

  is the second additional contribution rate for employees for the year.

• (3) The aggregate of an employee’s second additional contributions for a year deducted by the person’s employer from a payment of remuneration in respect of pensionable employment shall not exceed the year’s maximum second additional contribution.

Provincial Pension Plan

• 6 (1) If an employee has made a base contribution and a first additional contribution for the year under a provincial pension plan in respect of salary and wages paid to the employee by an employer, the amount of the employee’s base contribution and the employee’s first additional contribution determined under section 5, in respect of a payment of remuneration to the employee in that year by that employer, shall not exceed the amount remaining after subtracting from the sum of the year’s maximum base contribution and the year’s maximum first additional contribution the aggregate of that employee’s base contributions and first additional contributions previously required to be deducted in that year by that employer under this Part or under a provincial pension plan.

• (2) For the purposes of the calculation under subsection (1), the amount of contributions previously required to be deducted by the employer under a provincial pension plan is equal to the amount determined by multiplying the amount of those contributions by the ratio that the sum of the contribution rate for employees and the first additional contribution rate for employees under the Act bears to the sum of the corresponding rates of the provincial pension plan.

• (3) If an employee has made a second additional contribution for the year under a provincial pension plan in respect of salary and wages paid to the employee by an employer, the amount of the employee’s second additional contribution determined under section 5.1, in respect of a payment of remuneration to the employee in that year by that employer, shall not exceed the amount remaining after subtracting from the year’s maximum second additional contribution the aggregate of that employee’s second additional contributions previously required to be deducted in that year by that employer under this Part or under a provincial pension plan.

• (4) For the purposes of the calculation under subsection (3), the amount of contributions previously required to be deducted by the employer under a provincial pension plan is equal to the amount determined by multiplying the amount of those contributions by the ratio that the second additional contribution rate for employees under the Act bears to the corresponding rate under the provincial pension plan.

• 6.1 (1) For the purposes of subsections 10(1) and 13(3) of the Act, the salary and wages on which a base contribution has been made for the year by an individual under a provincial pension plan is an amount equal to the aggregate of all base contributions required to be made by the individual in that year under a provincial pension plan in respect of salary and wages, divided by the base contribution rate for employees under the provincial plan for the year.

• (2) For the purposes of subsections 10(1.1) and 13(3.1) and (3.2) of the Act, the salary and wages on which a first additional contribution has been made for the year by an individual under a provincial pension plan is an amount equal to the aggregate of all first additional contributions required to be made by the individual in that year under a provincial pension plan in respect of salary and wages, divided by the first additional contribution rate for employees under the provincial pension plan for the year.

• (3) For the purposes of subsections 10(1.2) and 13(3.2) of the Act, the salary and wages on which a second additional contribution has been made for the year by an individual under a provincial pension plan is an amount equal to the aggregate of all second additional contributions required to be made by the individual in that year under a provincial pension plan in respect of salary and wages, divided by the second additional contribution rate for employees under the provincial pension plan for the year.

Employer’s Contribution

7 The amount that an employer shall remit as the employer’s contribution in respect of a payment of remuneration made by the employer to an employee in pensionable employment is an amount equal to the employee’s contributions required to be deducted under this Part in respect of that payment of remuneration.

Payment of Contributions

• 8 (1) Subject to subsections (1.1), (1.11), (1.12), (1.13) and (2), the employee’s contributions and the employer’s contributions shall be remitted to the Receiver General on or before the 15th day of the month following the month in which the employer paid to the employee the remuneration in respect of which those contributions were required to be made.

• (1.1) Subject to subsection (1.11), where the average monthly withholding amount of an employer for the second calendar year preceding a particular calendar year is

  • (a) equal to or greater than $25,000 and less than $100,000, the employer shall remit the employee’s contributions and the employer’s contributions to the Receiver General

    • (i) in respect of remuneration paid before the 16th day of a month in the particular calendar year, on or before the 25th day of the month, and

    • (ii) in respect of remuneration paid after the 15th day of a month in the particular calendar year, on or before the 10th day of the following month; or

  • (b) equal to or greater than $100,000, the employer shall remit the employee’s contributions and the employer’s contributions to the Receiver General on or before the third day, not including a Saturday or holiday, after the end of the following periods in which remuneration was paid,

    • (i) the period beginning on the first day of a month in the particular calendar year and ending on the 7th day of the month,

    • (ii) the period beginning on the 8th day of a month in the particular calendar year and ending on the 14th day of the month,

    • (iii) the period beginning on the 15th day of a month in the particular calendar year and ending on the 21st day of the month, and

    • (iv) the period beginning on the 22nd day of a month in the particular calendar year and ending on the last day of the month.

• (1.11) If an employer referred to in paragraph (1.1)(a) or (b) would otherwise be required to remit the employee’s contributions and employer’s contributions in respect of a particular calendar year in accordance with that paragraph, the employer may elect to remit those contributions

  • (a) in accordance with subsection (1), if the average monthly withholding amount of the employer for the calendar year preceding the particular calendar year is less than $25,000 and the employer has advised the Minister that the employer has so elected; or

  • (b) if the average monthly withholding amount of the employer for the calendar year preceding the particular calendar year is equal to or greater than $25,000 and less than $100,000 and the employer has advised the Minister that the employer has so elected,

    • (i) in respect of remuneration paid before the 16th day of a month in the particular calendar year, on or before the 25th day of the month, and

    • (ii) in respect of remuneration paid after the 15th day of a month in the particular calendar year, on or before the 10th day of the following month.

• (1.12) If at any time

  • (a) the average monthly withholding amount in respect of an employer for either the first or the second calendar year before the particular calendar year that includes that time is less than $3,000;

  • (b) throughout the 12-month period before that time, the employer has remitted, on or before the day on or before which the amounts were required to be remitted, all amounts each of which was required to be remitted under subsection 21(1) of the Act, under subsection 82(1) of the Employment Insurance Act, under Part IX of the Excise Tax Act or under subsection 153(1) of the Income Tax Act; and

  • (c) throughout the 12-month period before that time, the employer has filed all returns each of which was required to be filed under the Income Tax Act or Part IX of the Excise Tax Act on or before the day on or before which those returns were required to be filed under those Acts,

  contributions payable in a month that ends after that time and that is in the particular calendar year may be remitted by the employer to the Receiver General

  • (d) in respect of such contributions paid in January, February and March of the particular calendar year, on or before the 15th day of April of the particular year,

  • (e) in respect of such contributions paid in April, May and June of the particular calendar year, on or before the 15th day of July of the particular year,

  • (f) in respect of such contributions paid in July, August and September of the particular calendar year, on or before the 15th day of October of the particular year, and

  • (g) in respect of such contributions paid in October, November and December of the particular calendar year, on or before the 15th day of January of the year following the particular year.

• (1.13) If an employer is a new employer throughout a particular month in a particular calendar year, contributions payable in the month may be remitted by the employer to the Receiver General

  • (a) in respect of those contributions paid in January, February and March of the particular calendar year, on or before the 15th day of April of the particular calendar year;

  • (b) in respect of those contributions paid in April, May and June of the particular calendar year, on or before the 15th day of July of the particular calendar year;

  • (c) in respect of those contributions paid in July, August and September of the particular calendar year, on or before the 15th day of October of the particular calendar year; and

  • (d) in respect of those contributions paid in October, November and December of the particular calendar year, on or before the 15th day of January of the year following the particular calendar year.

• (1.2) For the purpose of this section,

  • (a) the average monthly withholding amount of an employer for a calendar year is determined in accordance with subsections 108(1.2) and (1.3) of the Income Tax Regulations;

  • (b) the determination as to whether an employer is a new employer is made in accordance with subsections 108(1.4) and (1.41) of the Income Tax Regulations; and

  • (c) the monthly withholding amount in respect of a new employer for a month is determined in accordance with subsection 108(1.21) of the Income Tax Regulations.

• (2) If an employer carrying on a business or activity with respect to which they employ employees in pensionable employment ceases to carry on that business or activity, the employer shall, within seven days of ceasing to carry on that business or activity, remit to the Receiver General any employee’s contributions and any employer’s contributions that the employer is required to remit with respect to those employees.

• (3) Every payment by an employer of an employee’s contributions or an employer’s contributions shall be accompanied by a return in prescribed form.

• 8.1 (1) Every person by whom the remuneration of an employee in respect of pensionable employment is paid either wholly or in part is, for the purpose of calculating the employee’s contributory salary and wages, maintaining records and filing returns, and paying, deducting and remitting the contributions payable under the Act and these Regulations, deemed to be an employer of that employee in addition to the actual employer of that employee.

• (1.1) The amount of any contributions paid by the person who is deemed to be the employer under subsection (1) is recoverable by that person from the actual employer.

• (2) Where a person who is deemed by subsection (1) to be an employer fails to pay, deduct or remit the contributions that an employer is required to pay, deduct and remit under the Act and these Regulations, the provisions of Part I of the Act shall apply to that person as if he were the actual employer.

Prescribed Persons

• 8.2 (1) The following are prescribed persons for the purposes of subsection 21(1) of the Act:

  • (a) an employer who is required, under subsection 21(1) of the Act and in accordance with paragraph 8(1.1)(b), to remit amounts deducted; and

  • (b) a person or partnership who, acting on behalf of one or more employers, remits the following amounts in a particular calendar year and whose average monthly remittance, in respect of those amounts, for the second calendar year preceding the particular calendar year, is equal to or greater than $50,000,

    • (i) amounts required to be remitted under subsection 21(1) of the Act,

    • (ii) amounts required to be remitted under subsection 153(1) of the Income Tax Act and a similar provision of a law of a province that imposes a tax on the income of individuals, where the province has entered into an agreement with the Minister of Finance for the collection of taxes payable to the province, in respect of payments described in the definition remuneration in subsection 100(1) of the Income Tax Regulations, and

    • (iii) amounts required to be remitted under subsection 53(1) of the Unemployment Insurance Act.

• (2) For the purposes of paragraph (1)(b), the average monthly remittance made by a person or partnership on behalf of all the employers for whom that person or partnership is acting, for the second calendar year preceding the particular calendar year, is the quotient obtained when the aggregate, for that preceding year, of all amounts referred to in subparagraphs (1)(b)(i) to (iii) remitted by the person or partnership on behalf of those employers is divided by the number of months, in that preceding year, for which the person or partnership remitted those amounts.

Security Interests

• 8.3 (1) For the purpose of subsection 23(4.1) of the Act, prescribed security interest, in relation to an amount deemed by subsection 23(3) of the Act to be held in trust by a person means that part of a mortgage securing the performance of an obligation of the person, that encumbers land or a building, where the mortgage is registered pursuant to the appropriate land registration system before the time the amount is deemed to be held in trust by the person.

• (2) For the purpose of subsection (1), where, at any time after 1999, the person referred to in subsection (1) fails to pay an amount deemed by subsection 23(3) of the Act to be held in trust by the person, as required under the Act, the amount of the prescribed security interest referred to in subsection (1) is deemed not to exceed the amount by which the amount, at that time, of the obligation outstanding secured by the mortgage exceeds the total of

  • (a) all amounts each of which is the value determined at the time of the failure, having regard to all the circumstances including the existence of any deemed trust for the benefit of Her Majesty pursuant to subsection 23(3) of the Act, of all the rights of the secured creditor securing the obligation, whether granted by the person or not, including guarantees or rights of set-off but not including the mortgage referred to in subsection (1), and

  • (b) all amounts applied after the time of the failure on account of the obligation,

  so long as any amount deemed under any enactment administered by the Minister, other than the Excise Tax Act, to be held in trust by the person, remains unpaid.

• (3) For greater certainty, a prescribed security interest includes the amount of insurance or expropriation proceeds relating to land or a building that is the subject of a registered mortgage interest, adjusted after 1999 in accordance with subsection (2), but does not include a lien, a priority or any other security interest created by statute, an assignment or hypothec of rents or of leases, or a mortgage interest in any equipment or fixtures that a mortgagee or any other person has the right absolutely or conditionally to remove or dispose of separately from the land or building.