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
Example
The 2023 contribution year began on the 61st day of 2023 (March 2) and ends on the 60th day of 2024 (February 29). 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 2, 2023 to December 31, 2023; and January 1, 2024 to February 29, 2024.
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 2019 contribution year which begins on the 61st day of 2019 (March 2, 2019) and ended on the 60th day of 2020 (March 2, 2020). Each contribution receipt slip for a particular contributor to a particular plan would have provide a breakdown of the total contributions made during the following periods: March 2, 2019 to December 31, 2019 and January 1, 2020 to March 2, 2020.
Contribution made by the employer
The employer contribution is made during the tax year, which begins on January 1 and ends on December 31.
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