T4 - CPP/QPP – Weeks of Employment

The number of "weeks of pensionable employment" is required to correctly calculate the required CPP/QPP contribution, as the basic exemption of $3,500 must be pro-rated over 52 pay periods.

The program defaults to 52 weeks of employment. If the employee has been working for less than 52 weeks, enter the number of weeks of employment in the appropriate box.

Prorating the maximum CPP contribution for the year

You will have to prorate the maximum CPP contribution for the year when:

an employee turns 18 in the year;
an employee turns 70 in the year;
an employee starts receiving a retirement pension from the CPP or the QPP, is between 65 and 70 years of age and has elected to stop contributing to the CPP;
an employee is considered to be disabled under the CPP or QPP; and
an employee dies in the year.

In these cases, enter, in the box titled "Periods of pensionable employment CPP/QPP," the number of weeks included respectively in:

the period after the employee turns 18;
the period before the employee turns 70;
the period prior to the first day of the month following the month where the employee gave you a copy of form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election;
the period during which the person was not considered disabled;
the period before death.

QPP proration

You have to prorate the maximum QPP contribution for the year in the following circumstances:

the employee turns 18 in the year;
the employee is considered to be disabled under the CPP or QPP;
the employee dies in the year.

In these cases, enter, in the box titled "Periods of pensionable employment CPP/QPP," the number of weeks included respectively in:

the period after the employee turns 18;
the period during which the person was not considered disabled;
the period before death.

Note: A proration is performed in the case of an employee who turns 70 or who begins to receive a retirement pension from the CPP or QPP in the year.