Contribution year
Both the employee and the employer can make contributions to the employee's PRPP. However, the contribution year for employees and employers are different.
Contribution made by the employee
Generally, the contribution year is the period that:
- begins on the 61st day of a year, the last 10 months of the tax year
- ends on the 60th day of the following year
If the end of the previous contribution year falls on Saturday, a Sunday or a public holiday, the preceding contribution year ends on the first business day that follows that Saturday or Sunday, and the start of the current contribution year begins on the day after that first business day.
Example
The 2025 contribution year began on the 63st day of 2025 (March 4) and ends on the 61th day of 2026 (March 2). Each contribution receipt slip for a particular contributor to a particular plan would provide a breakdown of the total contributions made during the following periods: March 4, 2025 to December 31, 2025; and January 1, 2026 to March 2, 2026.
Contribution made by the employer
The employer contribution is made during the tax year, which begins on January 1 and ends on December 31.