Checking the amount of CPP you deducted

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

1) Prorate the maximum CPP contribution for the year by following these steps:

Step 1: Deduct the year’s basic exemption ($3,500 for 2017) from the year’s maximum pensionable earnings ($55,300 for 2017).

Step 2: Multiply the result of Step 1 by the number of pensionable months.

Step 3: Divide the result of Step 2 by 12 (months).

Step 4: Multiply the result of Step 3 by the CPP rate that applies for the year (4.95% for 2017).

To find out about the previous and current exemptions, maximums, and rates, go to CPP contribution rates, maximums and exemptions.

2) Calculate the CPP contribution per pay period using the Manual calculation for CPP, and withhold the amount calculated until one of the following happens:

  • the maximum prorated contribution for the year is reached
  • the last pay period for which deductions are required is completed

3) The correct amount of CPP contributions will be 1) or 2), whichever is the lowest.

Examples

To help you understand how to prorate, see examples.

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