SCENARIO
In May of the current year, your employer received a PIER report from the CRA that identified Canada Pension Plan (CPP) contribution deficiencies for employees in the organization who:
- turned 18 during the year
- turned 70 during the year
- had chosen to opt out of paying CPP by submitting a completed CPT30 form
To avoid a recurrence, the Payroll Manager, Mary Arnstein, has asked you to prepare a summary of the CPP reporting requirements on T4 information slips. The summary will be used to validate the current payroll setup to ensure that the T4s will be completed properly in future. Provide information on the CPP related boxes that must be completed, including how any amounts are calculated, for employees who:
- are under 18 for the entire year
- turn 18 during the year
- are over 70 for the entire year
- turn 70 during the year
- submit a completed CPT30 form during the year, electing to stop contributing to the Canada Pension Plan
- submit a completed CPT30 form during the year, revoking their previous election to stop contributing to the Canada Pension Plan
Prepare your response (250 - 450 words) using correct spelling, grammar and punctuation. You will be penalized if you are excessively over or under the suggested word count. Your response to this question must be stated in your own words and should be based on the course material, your experiences, knowledge gained through the course and at least one external government resource.
Any responses taken directly from the external government resource or course material will not be accepted. Information referenced from the government resource(s) and the course material must be cited. For example:
- if you are referencing the Canada Revenue Agency's Employers' Guide - Payroll Deductions and Remittances - T4001, state the URL where the information can be found, https://www.cra-arc.gc.ca/E/pub/tg/t4001/README.html and the page number, if applicable
- if you are referencing the course material, state the course name, chapter and page number where the information can be found
It is recommended that you prepare your response using MS Word or a similar word processing software and then copy and paste your response into the ‘Your Response' field.