Starting and Stopping CPP Deductions
Employers must withhold Canada Pension Plan (CPP) contributions from eligible employees’ pensionable earnings. In certain circumstances, you may need to start, stop or restart deducting CPP contributions during the year for a particular employee. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/canada-pension-plan-cpp/starting-stopping-cpp-deductions.html))
📌 Standard Rules for CPP Deductions
You must deduct CPP contributions if the employee:
- Is employed in Canada in pensionable employment
- Is aged 18 to 69 years old (inclusive)
- Is not considered disabled under the CPP or Quebec Pension Plan (QPP)
If any of these change during the year, you may need to adjust your deductions.
🧒 Employee Turns 18 Years Old
Start deducting CPP contributions as of the first pay dated in the month after the employee’s 18th birthday. Use the number of months after the month of turning 18 when prorating the annual maximum CPP amount.
👴 Employee Turns 70 Years Old
Stop deducting CPP contributions as of the last pay dated in the month in which the employee turns 70. Use the number of months up to and including the month of the 70th birthday to prorate the maximum contribution.
✍️ Employee Files Form CPT30
An employee can elect to stop or restart CPP contributions by filing Form CPT30 — Election to Stop Contributing to the CPP or a revocation. The election affects deductions starting on the first day of the month after the employer receives the form.
Stopping CPP with CPT30
An employee aged 65 to 69 receiving a CPP or QPP retirement pension may elect to stop contributing to CPP. The election becomes effective the first day of the month after receipt by the employer. Prorate up to and including the month before the election.
Restarting CPP with CPT30
If an employee previously elected to stop and now wants contributions reinstated, the employee can revoke that election on Form CPT30 (parts A, B and D completed). Restart CPP deductions from the first pay dated in the month after the employer receives the revocation.
♿ Employee Is Considered Disabled Under CPP
If an employee is deemed disabled under the CPP, you should stop deducting CPP contributions up to and including the last pay dated in the month they became disabled (as confirmed by Service Canada). If they are later no longer considered disabled, start deductions from the first pay dated in the month after that change.
⚰️ Employee Dies in the Year
Deduct CPP contributions up to and including the last pay dated in the month in which the employee dies. Also deduct CPP contributions on any final amounts and benefits owed to the employee.
📅 Prorating CPP Contributions
When starting or stopping CPP mid‑year because of age changes, disability status, death, or CPT30 elections, you may need to prorate the employee’s maximum CPP contribution for the year. This ensures correct total contributions are deducted. (See examples in the CRA’s T4001 Employers’ Guide – Payroll Deductions and Remittances).
💡 Other Considerations for Employers
If an employee has multiple employers within the year, each employer must deduct CPP until the employee reaches the CPP maximum contribution with that employer — amounts deducted by other employers do not affect your obligations.
Quebec employers instead deduct Quebec Pension Plan (QPP) contributions under similar rules but with QPP‑specific forms and tables.
