This guest blog post is provided by the Canada Revenue Agency, which administers tax laws and delivers social and economic benefit and incentive programs.

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, go to the payroll page and select "Penalties, interest, and other consequences."

Employees working in Quebec and other workers not subject to the CPP will not be affected by these changes.

Get more information

For more information about what the changes will mean for employers, go to the Changes to the rules for deducting Canada Pension Plan (CPP) contributions page.

For the full suite of tools and information explaining the CPP changes for individuals aged 60 to 70, go to the Changes to the Canada Pension Plan (CPP) page.


  • In 2010, 496,000 CPP retirement pension recipients were still working, representing 12% of all CPP retirement pension recipients.
  • Of those 496,000 recipients, 385,000 were 60 to 70 years of age.

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