Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Canada Pension Plan (R.S.C., 1985, c. C-8)

Full Document:  

Act current to 2019-08-28 and last amended on 2018-12-15. Previous Versions

PART IContributions (continued)

DIVISION BCalculation of Contributions (continued)

Contributory Self-Employed Earnings (continued)

Marginal note:Amount of self-employed earnings for a year

 The amount of the self-employed earnings of a person for a year is the aggregate of

  • (a) an amount equal to

    • (i) his income for the year from all businesses, other than a business more than fifty per cent of the gross revenue of which consisted of rent from land or buildings, carried on by him,

    minus

    • (ii) all losses sustained by him in the year in carrying on those businesses,

    as such income and losses are computed under the Income Tax Act, except any such income or losses from the performance of services described in paragraph 7(1)(d) that has been included in pensionable employment by a regulation made under subsection 7(1) or by a regulation made under a provincial pension plan,

  • (b) his income for the year from employment described in paragraph 7(2)(e) that has been excepted from pensionable employment by a regulation made under subsection 7(2) or by a regulation made under a provincial pension plan, as that income is computed under the Income Tax Act, and

  • (c) in the case of an Indian, as defined in the Indian Act, to the extent provided by regulations and subject to any conditions prescribed by those regulations, his income for the year from self-employment on a reserve, as defined in the Indian Act, that is not otherwise included in computing income for the purposes of the Income Tax Act.

  • R.S., 1985, c. C-8, s. 14
  • R.S., 1985, c. 30 (2nd Supp.), s. 7

Marginal note:Idem

 For the purposes of paragraph 14(a), where a member of a family in a congregation is specified in an election under subsection 143(2) of the Income Tax Act for a year, such part of the total of all amounts allocated to the family under that subsection for the year as may reasonably be regarded as having been derived from a business carried on by the congregation shall be deemed to be the member’s income (as computed under that Act) from such a business carried on by the member.

  • 1991, c. 49, s. 204

Salary and Wages on which Contribution made

Marginal note:Amount of salary and wages on which base contribution made

  •  (1) The amount of a person’s salary and wages on which a base contribution has been made for a year is the greater of the following amounts, divided by the contribution rate for employees for the year:

    • (a) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s base contribution for the year under this Act, minus the portion of those amounts that exceeds the amount determined under paragraph 8(2)(a), and

    • (b) an amount equal to

      • (i) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s base contribution for the year under this Act or under a provincial pension plan,

      minus

      • (ii) the sum of

        • (A) the amount determined under paragraph 8(2)(b), and

        • (B) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s base contribution for the year under this Act or under a provincial pension plan, minus the sum of the amounts determined under paragraphs 8(2)(a) and (b).

  • Marginal note:Employer’s failure to deduct amount

    (1.1) For the purposes of subsection (1), if an employer has failed to deduct an amount as required from the person’s remuneration on account of the employee’s base contribution for the year and that person has, before June 30 of the following year, notified the Minister of the employer’s failure to so deduct that amount, an amount equal to the amount that should have been so deducted by the employer on account of that contribution is added to the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s base contribution for the year.

  • Marginal note:Effect of payment by employer of amount not deducted as required

    (2) For the purposes of subsection 8(2) and this section, if an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s base contribution for a year is paid by the employer on account of the employee’s base contribution for that year, the amount so paid is deemed to have been deducted by the employer on account of that contribution.

  • R.S., 1985, c. C-8, s. 15
  • R.S., 1985, c. 30 (2nd Supp.), s. 8
  • 2016, c. 14, s. 10
  • 2018, c. 12, s. 367

Marginal note:Amount of salary and wages on which first additional contribution made

  •  (1) The amount of a person’s salary and wages on which a first additional contribution has been made for a year is the greater of the following amounts, divided by the first additional contribution rate for employees for the year:

    • (a) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s first additional contribution for the year under this Act, minus the portion of those amounts that exceeds the amount determined under paragraph 8(2)(a.1), and

    • (b) an amount equal to

      • (i) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s first additional contribution for the year under this Act or under a provincial pension plan,

      minus

      • (ii) the sum of

        • (A) the amount determined under paragraph 8(2)(c), and

        • (B) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s first additional contribution for the year under this Act or under a provincial pension plan, minus the sum of the amounts determined under paragraphs 8(2)(a.1) and (c).

  • Marginal note:Employer’s failure to deduct amount

    (1.1) For the purposes of subsection (1), if an employer has failed to deduct an amount as required from the person’s remuneration on account of the employee’s first additional contribution for the year and that person has, before June 30 of the following year, notified the Minister of the employer’s failure to so deduct that amount, an amount equal to the amount that should have been so deducted by the employer on account of that contribution is added to the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s first additional contribution for the year.

  • Marginal note:Effect of payment by employer of amount not deducted as required

    (2) For the purposes of subsection 8(2) and this section, if an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s first additional contribution for a year is paid by the employer on account of the employee’s first additional contribution for that year, the amount so paid is deemed to have been deducted by the employer on account of that contribution.

  • 2016, c. 14, s. 10
  • 2018, c. 12, s. 368

Marginal note:Amount of salary and wages on which second additional contribution made

  •  (1) The amount of a person’s salary and wages on which a second additional contribution has been made for a year is an amount equal to the product obtained when the ratio referred to in subsection 8(8) is multiplied by the following amount, divided by the second additional contribution rate for employees for the year:

    • (a) the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s second additional contribution for the year under this Act or under a provincial pension plan and the amounts determined under clauses 15(1)(b)(ii)(B) and 15.1(1)(b)(ii)(B),

    minus

    • (b) the amount determined under subsection 8(2).

  • Marginal note:Employer’s failure to deduct amount

    (1.1) For the purposes of subsection (1), if an employer has failed to deduct an amount as required from the person’s remuneration on account of the employee’s second additional contribution for the year and that person has, before June 30 of the following year, notified the Minister of the employer’s failure to so deduct that amount, an amount equal to the amount that should have been so deducted by the employer on account of that contribution is added to the aggregate of all amounts deducted as required from the remuneration of that person on account of the employee’s second additional contribution for the year.

  • Marginal note:Effect of payment by employer of amount not deducted as required

    (2) For the purposes of subsection 8(2) and this section, if an amount that an employer has failed to deduct as required from the remuneration of an employee on account of the employee’s second additional contribution for a year is paid by the employer on account of the employee’s second additional contribution for that year, the amount so paid is deemed to have been deducted by the employer on account of that contribution.

  • 2016, c. 14, s. 10
  • 2018, c. 12, s. 369
 
Date modified: