# Calculate second additional CPP contributions (CPP2) deductions

Beginning **January 1, 2024**, you must begin to calculate the second additional CPP contribution (CPP2) on earnings above the annual maximum pensionable earnings.

**You may be looking for:** Second additional CPP contribution (CPP2) rates and maximums

How to use the CPP2 contributions tables and how to manually calculate the amount to withhold.

**If the employee's province of employment is Quebec**, you are required to deduct the second Quebec Pension Plan (QPP) contributions and not the CPP2 contributions, refer to: Québec Pension Plan Contributions | Revenu Québec

## On this page

## Calculation methods

** Reminder:** There is an online calculator that will calculate the CPP2 deductions for you.

Calculate CPP2 deductions based on the type of payment:

- Any payments (CPP2 tables)
- Any payments (manual calculation)
- Verification – Year-end or multiple pay periods

## Any payments (CPP2 tables)

CPP2 contributions tables calculate the required CPP2 contribution for you on given ranges of income for a specified pay period.

### Steps

#### Determine if you can use CPP2 contributions tables

CPP2 contributions tables can be used in most common situations.

### Use when

- The payment is for remuneration paid in one of the common or uncommon pay periods for which tables are provided
- If the payment is made to a First Nations worker and you received Form TD1-IN,
**only**use these tables on the**portion**of their income which is**taxable**

### Do not use when

- You are doing a year-end verification of your CPP2 contributions, use: Verification – Year-end or multiple pay periods
- The employee already reached their CPP2 maximum contributions for the year

#### Determine if your employee exceeded the first maximum annual pensionable earnings ceiling

- Employee’s gross pay for the year to date
- plus Employee’s taxable benefits and allowances for the year to date
- minus Employee’s non-pensionable earnings for the year to date
## What are non-pensionable earnings

Non-pensionable earnings are:

- Received before and including the month they turned 18
- Received after the month they turned 70
- Received after the effective date of their completed and signed Form CPT30 to elect to stop contributing to the CPP
- Received before and including the month where the employee provided you a completed and signed Form CPT30 to restart contributing to the CPP
- Received while the employee is considered to be disabled under the CPP or QPP
- Employment income, benefits, and payments from which you are not required to deduct CPP

- equals This amount is the pensionable earnings for the year to date
- minus Employee's maximum pensionable earnings
## How to calculate prorated maximum pensionable earnings

- Maximum annual pensionable earnings
- multiply by Number of months the employee is pensionable
- equals Result of first step of proration calculation
- divide by 12 months
- equals Maximum pensionable earnings after prorating

- equals A positive amount confirms your employee exceeded the first maximum annual pensionable earnings ceiling

## Calculation example

Joseph receives a biweekly salary of $5,000 and $500 in taxable benefits per pay period. You have paid him for 13 pay periods so far in 2024 ($65,000 and $6,500, to a total of $71,500). All of his earnings are pensionable and he is pensionable for the full year of 2024.

- $65,000 is Joseph's gross pay for the year to date
- plus $6,500 is Joseph's taxable benefits for the year to date
- equals $71,500 is Joseph's pensionable earnings for the year to date
- minus $0 because all of Joseph's earnings require CPP contributions
- minus $68,500 the maximum annual pensionable earnings
- equals $3,000 is Joseph's pensionable earnings that exceeded the first maximum pensionable earnings ceiling

You must continue to calculate Joseph's CPP2 contributions because the amount is

**positive**.Do not continue to next step if the amount is

**zero or negative**.You

**do not deduct**CPP2 contributions in this situation.You

**must**continue to: Calculate CPP contributions deductions.- Continue to next step if the amount is
**positive**.

#### Determine if your employee reached the CPP2 maximum contribution

Use the applicable calculation if your employee has a pensionable employment for the full year or only for part of the year (prorate) .

##### Employee has more than one employer

You

**must**withhold CPP2 contributions until the employee reaches the maximum without taking into account deductions made by another employer.## Calculation – Employee pensionable for full year

- Maximum annual employee CPP2 contributions in their
**employment with you** - minus Employee's CPP2 contributions to date for the year in their
**employment with you** - equals This amount is the maximum CPP2 contributions that you can deduct from your employee's pay for the rest of the year

## Calculation example

All of Joseph’s earnings were pensionable for the year 2024. You have already deducted $100 in CPP2 from his earnings with you this year.

- $188 is the maximum 2024 annual CPP2 contributions in his employment with you
- minus $100 is the amount for Joseph CPP2 contributions to date for the year
**in his employment with you** - equals $88 is the maximum CPP2 contributions that you can deduct from Joseph's pay for the rest of the year

## Calculation – Employee pensionable only for part of the year (prorate)

- Additional maximum annual pensionable earnings
- minus Maximum annual pensionable earnings
- equals Additional maximum pensionable earnings
- multiply by Number of months the employee is pensionable
- equals Result of first part of proration calculation
- divide by 12 months
- equals Additional maximum pensionable earnings after prorating
- multiply by 4% (CPP2 rate )
- equals This amount is the maximum CPP2 contribution after prorating in their employment with you
- minus Employee's CPP2 contributions to date for the year in their employment with you
- equals This amount is the maximum CPP2 contributions that you can deduct from your employee's pay for the rest of the year

## Calculation example

Joseph turns 70 on February 24, 2024 and is pensionable for 2 months. You have already deducted $10 in CPP2 from his earnings with you this year.

- $73,200 is the additional maximum annual pensionable earnings
- minus $68,500 is the maximum annual pensionable earnings
- equals $4,700 is Joseph's additional maximum pensionable earnings
- multiply by 2 months that Joseph is pensionable
- equals $9,400 is the result of first part of proration calculation
- divide by 12 months
- equals $783.33 is Joseph's additional maximum pensionable earnings after prorating
- multiply by 4% is the CPP2 rate
- equals $31.33 is Joseph's maximum CPP2 contributions after prorating in his employment with you
- minus $10 is the amount for Joseph CPP2 contributions to date for the year
**in his employment with you** - equals $21.33 is the maximum CPP2 contributions that you can deduct from Joseph's pay for the rest of the year

**No**CPP2 contributions should be deducted**after the end of February 2024**.- Do not deduct CPP2 contributions if they have
**reached**the maximum. - Continue to next step if they have
**not reached**the CPP2 maximum.

- Maximum annual employee CPP2 contributions in their
#### Get the CPP2 contributions tables

### 2024 tax year

Use the CPP2 contributions tables.

Second additional CPP contributions table [PDF]

## Previous years

### Previous years

The 2024 CPP2 tables is the first tax year they are published.

#### Determine the pay range

Find the range that includes your employee's gross remuneration (including any taxable benefits) in the "Pay" column.

#### Get the amount of CPP2 contributions to deduct

Find the amount under the "CPP2" column that corresponds with the range that includes your employee’s pay for the pay period.

### Calculate the amount of CPP2 contributions you have to withhold

Use one of the following amount that applies to your situation:

- If the amount in
**step 6 is less**than step 3,**withhold the amount from step 6**. - If the amount in
**step 6 is greater**than step 3,**withhold the amount from step 3**.

- If the amount in
### Calculate the amount of CPP2 contributions you have to remit

- CPP2 contributions you have to withhold from your employee (step 7)
- multiply by 2 (matching employer CPP2 contributions)
- equals This is the total amount you have to remit (your employee's share and your share of the CPP2 contributions)

## Calculation example

You have reviewed the CPP2 contributions tables and found that the required CPP2 contributions for Joseph’s earnings in this pay period is $40.40. You have also confirmed that this amount is not more than the remaining CPP2 contributions that you can deduct for the rest of the year.

- $40.40 is Joseph's CPP2 contributions you have to withhold (step 7)
- multiply by 2 (your matching CPP2 contributions)
- equals $80.80 is the total CPP2 contributions to remit (Joseph's share and your share of the CPP2 contributions)

## Any payments (manual calculation)

You can use the manual calculation method to calculate the CPP2 contributions that must be withheld for any payments made to your employees in a pay period without using the CPP2 tables.

### Steps

#### Determine if your employee exceeded the first maximum annual pensionable earnings ceiling

- Employee’s gross pay for the year to date
- plus Employee’s taxable benefits and allowances for the year to date
- minus Employee’s non-pensionable earnings for the year to date
## What are non-pensionable earnings

Non-pensionable earnings are:

- Received before and including the month they turned 18
- Received after the month they turned 70
- Received after the effective date of their completed and signed Form CPT30 to elect to stop contributing to the CPP
- Received before and including the month where the employee provided you a completed and signed Form CPT30 to restart contributing to the CPP
- Received while the employee is considered to be disabled under the CPP or QPP
- Employment income, benefits, and payments from which you are not required to deduct CPP

- equals This amount is the pensionable earnings for the year to date
- minus Employee's maximum pensionable earnings
## How to calculate prorated maximum pensionable earnings

- Maximum annual pensionable earnings
- multiply by Number of months the employee is pensionable
- equals Result of first step of proration calculation
- divide by 12 months
- equals Maximum pensionable earnings after prorating

- equals A positive amount confirms your employee exceeded the first maximum annual pensionable earnings ceiling

## Calculation example

Joseph receives a biweekly salary of $5,000 and $500 in taxable benefits per pay period. You have paid him for 13 pay periods so far in 2024 ($65,000 and $6,500, to a total of $71,500). All of his earnings are pensionable and he is pensionable for the full year of 2024.

- $65,000 is Joseph's gross pay for the year to date
- plus $6,500 is Joseph's taxable benefits for the year to date
- equals $71,500 is Joseph's pensionable earnings for the year to date
- minus $0 because all of Joseph's earnings require CPP contributions
- minus $68,500 the maximum annual pensionable earnings
- equals $3,000 is Joseph's pensionable earnings that exceeded the first maximum pensionable earnings ceiling

You must continue to calculate Joseph's CPP2 contributions because the amount is

**positive**.Do not continue to next step if the amount is

**zero or negative**.You

**do not deduct**CPP2 contributions in this situation.You

**must**continue to: Calculate CPP contributions deductions.- Continue to next step if the amount is
**positive**.

#### Determine if your employee reached the CPP2 maximum contribution

Use the applicable calculation if your employee has a pensionable employment for the full year or only for part of the year (prorate) .

##### Employee has more than one employer

You

**must**withhold CPP2 contributions until the employee reaches the maximum without taking into account deductions made by another employer.## Calculation – Employee pensionable for full year

- Maximum annual employee CPP2 contributions in their
**employment with you** - minus Employee's CPP2 contributions to date for the year in their
**employment with you** - equals This amount is the maximum CPP2 contributions that you can deduct from your employee's pay for the rest of the year

## Calculation example

All of Joseph’s earnings were pensionable for the year 2024. You have already deducted $100 in CPP2 from his earnings with you this year.

- $188 is the maximum 2024 annual CPP2 contributions in his employment with you
- minus $100 is the amount for Joseph CPP2 contributions to date for the year
**in his employment with you** - equals $88 is the maximum CPP2 contributions that you can deduct from Joseph's pay for the rest of the year

## Calculation – Employee pensionable only for part of the year (prorate)

- Additional maximum annual pensionable earnings
- minus Maximum annual pensionable earnings
- equals Additional maximum pensionable earnings
- multiply by Number of months the employee is pensionable
- equals Result of first part of proration calculation
- divide by 12 months
- equals Additional maximum pensionable earnings after prorating
- multiply by 4% (CPP2 rate )
- equals This amount is the maximum CPP2 contributions after prorating in their employment with you
- minus Employee's CPP2 contributions to date for the year in their employment with you

## Calculation example

Joseph turns 70 on February 24, 2024 and is pensionable for two months. You have already deducted $10 in CPP2 from his earnings with you this year.

- $73,200 is the additional maximum annual pensionable earnings
- minus $68,500 is the maximum annual pensionable earnings
- equals $4,700 is Joseph's additional maximum pensionable earnings
- multiply by 2 months that Joseph is pensionable
- equals $9,400 is the result of first part of proration calculation
- divide by 12 months
- equals $783.33 is Joseph's additional maximum pensionable earnings after prorating
- multiply by 4% is the CPP2 rate
- equals $31.33 is Joseph's maximum CPP2 contributions after prorating in his employment with you
- minus $10 is the amount for Joseph CPP2 contributions to date for the year
**in his employment with you** - equals $21.33 is the maximum CPP2 contributions that you can deduct from Joseph's pay for the rest of the year

**No**CPP2 contributions should be deducted**after the end of February 2024**.- Do not deduct CPP2 contributions if they have
**reached**the maximum. - Continue to next step if they have
**not reached**the CPP2 maximum.

- Maximum annual employee CPP2 contributions in their
### Calculate the total CPP2 pensionable income

- Employee's gross pay for the pay period
- plus Employee's taxable benefits and allowances for the pay period
- minus Employee’s non-pensionable earnings for the pay period
- equals This is the total CPP2 pensionable income for the pay period

## Calculation example

Joseph receives a weekly salary of $500 and $50 in taxable benefits. He passed the maximum pensionable earnings ceiling for the year in July 2024 and this is your second calculation after he passed that ceiling.

- $500 is Joseph's gross pay for the pay period
- plus $50 is Joseph's taxable benefits for the pay period
- minus $0 because all of Joseph's earnings for the pay period require CPP2 contributions
- equals $550 is Joseph's total CPP2 pensionable income for the pay period

### Determine the amount of CPP2 contributions to deduct

- Total CPP2 pensionable income for the pay period (step 3)
- multiply by 4% (CPP2 rate )
- equals This amount is the CPP2 contributions to deduct

## Calculation example

The total of Joseph’s gross pay and taxable benefits for the weekly pay period is $550. All of Joseph's earnings require CPP2 contributions. He passed the maximum pensionable earnings for the year in July 2020 and this is your second calculation after he passed that ceiling.

- $550 is Joseph's total pensionable income for the pay period (step 3)
- multiply by 4% is the CPP2 rate
- equals $22 is the amount of CPP2 contributions to deduct

### Calculate the amount of CPP2 contributions you have to withhold

Use one of the following amount that applies to your situation:

- If the amount in
**step 4 is less**than step 2,**withhold the amount from step 4**. - If the amount in
**step 4 is greater**than step 2,**withhold the amount from step 2**.

- If the amount in
### Calculate the amount of CPP2 contributions you have to remit

- CPP2 contributions you have to withhold from your employee (step 5)
- multiply by 2 (matching employer CPP2 contributions)
- equals This is the total amount you have to remit (your employee's share and your share of the CPP2 contributions)

## Calculation example

You have calculated the required CPP2 contributions for Joseph's earnings in the pay period is $22. You have also confirmed that this amount is not more than the remaining CPP2 contributions that you can deduct for the rest of the year.

- $22 is Joseph's contributions you have to withhold (step 5)
- multiply by 2 (your matching CPP2 contributions)
- equals $44 is the total CPP2 contributions to remit (Joseph's share and your share of the CPP2 contributions)

## Verification – Year-end or multiple pay periods

Use this calculation to verify an employee’s CPP2 contributions at year-end or for multiple pay periods at any time of year. This verification is used to determine if you have deducted properly, under deducted or over deducted CPP2 contributions.

### Steps

#### Determine if your employee exceeded the first maximum annual pensionable earnings ceiling

The following calculation

**must**include**only**pensionable earnings in their**employment with you**:- Employee’s gross pay for the total period of employment which will be included in box 14 of their T4 slip
- plus Employee’s taxable benefits and allowances for the total period of employment which will be included in box 14 of their T4 slip
- minus Employee’s non-pensionable earnings
## What are non-pensionable earnings

Non-pensionable earnings are:

- Received before and including the month they turned 18
- Received after the month they turned 70
- Received after the effective date of their completed and signed Form CPT30 to elect to stop contributing to the CPP
- Received before and including the month where the employee provided you a completed and signed Form CPT30 to restart contributing to the CPP
- Received while the employee is considered to be disabled under the CPP or QPP
- Employment income, benefits, and payments from which you are not required to deduct CPP

- equals This amount is the pensionable earnings for the period of employment
- minus Employee's maximum pensionable earnings
## How to calculate prorated maximum pensionable earnings

- Maximum annual pensionable earnings
- multiply by Number of months the employee is pensionable
- equals Result of first step of proration calculation
- divide by 12 months
- equals Maximum pensionable earnings after prorating

- equals A positive amount confirms your employee exceeded the first maximum annual pensionable earnings ceiling

## Calculation example

Your employee Joseph was pensionable for the whole year of 2024. You are about to prepare his T4 and are reviewing your payroll records to confirm that you have deducted enough CPP2 from his earnings this year. He was pensionable for the entire year.

- $85,000 is Joseph’s total salary, wages benefits, and allowances for the total period of employment which will be included in box 14 of their T4 slip
- minus $0 is Joseph’s non-pensionable earnings. These are earnings:
- Received before and including the month they turned 18
- Received after the month they turned 70
- Received while the employee is considered to be disabled under the CPP or QPP
- Employment income, benefits, and payments from which you are not required to deduct CPP

- equals $85,000 is Joseph's pensionable earnings for the period of employment
- minus $68,500 is the maximum annual pensionable earnings for the period of employment
- equals $16,500 is Joseph's pensionable earnings that exceeded the first maximum pensionable earnings ceiling

You must continue to calculate Joseph's CPP2 contributions because the amount is

**positive**.Do not continue to next step if the amount is

**zero or negative**.You

**do not deduct**CPP2 contributions in this situation.You

**must**continue to: Calculate CPP contributions deductions.- Continue to next step if the amount is
**positive**.

### Confirm the amount of CPP2 pensionable earnings for the period of employment

- Employee’s additional maximum annual pensionable

earnings - minus Employee’s maximum annual pensionable earnings
- equals Result

## Calculation example

Your employee Joseph was pensionable for the whole year of 2024. You are about to prepare his T4 and are reviewing your payroll records to confirm that you have deducted enough CPP2 from his earnings this year. He was pensionable for the entire year and his total earnings were $85,000.

- $73,200 is the additional maximum pensionable earnings
- minus $68,500 is the maximum annual pensionable earnings
- equals $4,700 is the result

The result in step 1 is $16,500 and is more than $4,700. Use $4,700 to calculate step 3.

- If the amount in step 1 is
**more than**your result, use**this result as the CPP2 pensionable earnings for the period of employment**. - If the amount in step 1 is
**less than**your result, use the amount from**step 1 as the CPP2 pensionable earnings for the period of employment**.

- Employee’s additional maximum annual pensionable
### Determine the amount of required CPP2 contributions for the period of employment

- CPP2 pensionable earnings for the period of employment (step 2)
- multiply by 4% (CPP2 rate )
- equals This amount is the employee's required CPP2 contributions for the period of employment

## Calculation example

Joseph was paid monthly during the year of 2024 in his employment with your company. As his income ($85,000) was above both the maximum pensionable earnings and additional maximum pensionable earnings for the year, his CPP2 contributory earnings are the additional maximum pensionable earnings $4,700.

- $4,700 is Joseph's CPP2 pensionable earnings for the period of employment (step 2)
- multiply by 4% is the CPP2 rate
- equals $188 is the amount for your employee's required CPP2 contributions for the period of employment

### Determine if you have under or over remitted for the period of employment

- Employee's required CPP2 contributions for the period of employment (step 3)
- minus CPP2 contributions you deducted from the employee for the period of employment
- equals This amount should be $0 if you have deducted correctly

## Calculation example

You confirmed in your payroll records that a total of $188 in CPP2 was deducted from Joseph’s pay during the year of 2024.

- $188 is Joseph's required CPP2 contributions for the period of employment (step 2)
- minus $188 is the CPP2 contributions you deducted from Joseph for the period of employment
- equals $0 is the amount, this means you have deducted correctly

- If the amount is
**positive**you have under deducted for the period of employment. - If the amount is
**negative**you have over deducted for the period of employment.

To correct a deduction error:

- If you have
**not filed**the information return, refer to: Make corrections before filing - If you
**already filed**the information return, refer to: Make corrections after filing

## References

### Related

- Administration of the Canada Pension Plan and the Employment Insurance Act
- Canada Pension Plan enhancement

### Multimedia

- Webinar – Enhanced CPP & You | 45 minutes
- Webinar – How to use the payroll deductions tables | 18 minutes

### Legislation

- CPP: 8
- Contributions by employees in respect of pensionable employment
- CPP: 9
- Contributions by employers in respect of pensionable employment
- CPP: 11.1
- Contribution rate
- CPP: 11.2
- First and second additional contribution rates
- CPP: 12
- Contributory salary and wages
- CPP: 17.1
- Additional maximum pensionable earnings
- CPP: 18.1
- Year’s additional maximum pensionable earnings
- CPP: 21(2)
- Amount to be deducted and remitted by employer
- CPP: Schedule 2
- First and second additional contribution rates
- CPP Reg: 4
- Computation of employee's contribution
- CPP Reg: 5.1(1)
- Computation of employee's contribution
- CPP Reg: 7
- Employer's contribution

## Page details

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