Canada Pension Plan (CPP)

Changes to the rules for deducting Canada Pension Plan (CPP) contributions.

You have to deduct CPP contributions from an employee's pensionable earnings if that employee meets all of the following conditions:


For more information, see Starting and stopping CPP deductions.

For more information about pensionable earnings, go to Pensionable and insurable earnings.

Employment in Quebec

Quebec employers deduct the Quebec Pension Plan (QPP) contributions instead of CPP contributions.


As a result of Quebec Pension Plan (QPP) enhancements, as of January 1, 2019, the QPP contribution rates for employers and employees is 5.55%. For information about QPP enhancement, see "Enhancement of the QPP" at Québec Pension Plan Contributions.

The contribution rates for QPP are higher than those for CPP. Although the year’s maximum pensionable earnings ($57,400 for 2019) and annual basic exemption ($3,500) for both plans are the same, an employee paying into the QPP will pay contributions at a higher rate (5.55% for 2019) compared to the rate for an employee who pays into the CPP (5.10% for 2019).

For more information on deducting and remitting the QPP, see Guide TP- 1015.G-V, Guide for Employers: Source Deductions and Contributions, which you can get from Revenu Québec.

You may have a place of business in Quebec and in another province or territory. As of January 1, 2019, if you transfer an employee from Quebec to another part of Canada before the end of the year, you must use a new formula to reconcile the amounts contributed to the CPP and the QPP to  make sure that enough contributions to the CPP are withheld and future benefits are not affected.

For more information on the new formula, see Guide T4127, Payroll Deductions Formulas.


This change is effective January 1, 2019. The CRA expects employers to make their best efforts to comply in 2019 and to be fully compliant by January 1, 2020.

If you transfer an employee from Quebec to another province or territory, you can take into account the QPP contributions you deducted from that employee throughout the year when calculating the maximum CPP contributions to deduct. In addition to deducting CPP/QPP contributions and EI/QPIP premiums you will also have to prepare two T4 slips. It is important that you calculate and report the proper deductions and insurable/pensionable earnings on both T4 slips. For more information, see Guide RC4120, Employers’ Guide – Filing the T4 Slip and Summary or Guide RL 1.G-V, Guide to Filing the RL-1 Slip: Employment and Other Income.

Services and information

Forms and publications

Related topics


Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: