Budget Implementation Act, 2018, No. 1 (S.C. 2018, c. 12)
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Assented to 2018-06-21
PART 6Various Measures (continued)
DIVISION 19R.S., c. C-8Canada Pension Plan (continued)
Amendments to the Act (continued)
363 (1) Paragraph 9(1)(b) of the Act is replaced by the following:
(b) the maximum contributory earnings of the employee for the year, minus the amount, if any, that is determined in the prescribed manner to be the employee’s salary and wages on which a base contribution has been made for the year by the employer with respect to the employee under a provincial pension plan.
(2) Paragraph 9(1.1)(b) of the Act is replaced by the following:
(b) the employee’s maximum contributory earnings for the year, minus the amount, if any, that is determined in the prescribed manner to be the employee’s salary and wages on which a first additional contribution has been made for the year by the employer with respect to the employee under a provincial pension plan.
(3) Subsection 9(1.2) of the Act is replaced by the following:
Marginal note:Employer’s second additional contribution
(1.2) For 2024 and each subsequent year, an employer referred to in subsection (1) shall also, in respect of each employee employed by the employer in pensionable employment, make an employer’s second additional contribution for the year in which remuneration in respect of the pensionable employment is paid to the employee of an amount equal to the product obtained when the second additional contribution rate for employers for the year is multiplied by the amount equal to
(a) the amount by which the employee’s contributory salary and wages for the year paid by the employer — not exceeding the employee’s additional maximum pensionable earnings for the year — exceeds the employee’s maximum pensionable earnings for the year,
minus
(b) the amount, if any, that is determined in the prescribed manner to be the employee’s salary and wages on which a second additional contribution has been made for the year by the employer with respect to the employee under a provincial pension plan.
364 (1) Paragraph 10(1)(b) of the Act is replaced by the following:
(b) the individual’s maximum contributory earnings for the year, minus the individual’s salary and wages, if any, on which a base contribution has been made for the year and the amount, if any, that is determined in the prescribed manner to be the individual’s salary and wages on which a base contribution has been made for the year by the individual under a provincial pension plan.
(2) Paragraphs 10(1.1)(a) and (b) of the Act are replaced by the following:
(a) the individual’s contributory self-employed earnings for the year, minus the amount by which the individual’s basic exemption for the year exceeds the aggregate of
(i) all amounts deducted as prescribed on account of the individual’s basic exemption for the year whether by one or more employers under section 8, and
(ii) all amounts deducted as prescribed by or under a provincial pension plan on account of any like exemption for the year whether by one or more employers under that plan, and
(b) the individual’s maximum contributory earnings for the year, minus the individual’s salary and wages, if any, on which a first additional contribution has been made for the year and the amount, if any, that is determined in the prescribed manner to be the individual’s salary and wages on which a first additional contribution has been made for the year by the individual under a provincial pension plan.
(3) Paragraph 10(1.2)(b) of the Act is replaced by the following:
(b) the individual’s salary and wages, if any, on which a second additional contribution has been made for the year and the amount, if any, that is determined in the prescribed manner to be the individual’s salary and wages on which a second additional contribution has been made for the year by the individual under a provincial pension plan.
365 The portion of subsection 12(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Amount of contributory salary and wages
12 (1) The amount of the contributory salary and wages of a person for a year is the person’s income for the year from pensionable employment, computed in accordance with the Income Tax Act, plus any deductions for the year made in computing that income otherwise than under paragraph 8(1)(c) of that Act, but does not include any such income received by the person
366 (1) Subparagraph 13(3)(b)(i) of the Act is replaced by the following:
(i) the person’s salary and wages on which a base contribution has been made for the year and the amount, if any, that is determined in the prescribed manner to be the person’s salary and wages on which a base contribution has been made for the year by the person under a provincial pension plan, and
(2) Subparagraph 13(3.1)(a)(i) of the Act is replaced by the following:
(i) the person’s contributory salary and wages for the year, and
(3) Subparagraph 13(3.1)(b)(i) of the Act is replaced by the following:
(i) the person’s salary and wages on which a first additional contribution has been made for the year and the amount, if any, that is determined in the prescribed manner to be the person’s salary and wages on which a first additional contribution has been made for the year by the person under a provincial pension plan, and
(4) Clause 13(3.1)(b)(ii)(A) of the Act is replaced by the following:
(A) the aggregate of all amounts deducted as prescribed on account of the person’s basic exemption for the year by one or more employers under section 8 and all amounts deducted as prescribed by or under a provincial pension plan on account of any like exemption for the year by one or more employers under that plan, and
(5) Subparagraph 13(3.2)(a)(i) of the Act is replaced by the following:
(i) the person’s contributory salary and wages for the year, and
(6) Paragraph 13(3.2)(b) of the Act is amended by adding the following after subparagraph (i):
(i.1) the amount, if any, that is determined in the prescribed manner to be the person’s salary and wages on which a first additional contribution has been made for the year by the person under a provincial pension plan and the person’s salary and wages on which a second additional contribution has been made for the year by the person under a provincial pension plan,
(7) Clause 13(3.2)(b)(ii)(A) of the Act is replaced by the following:
(A) the aggregate of all amounts deducted as prescribed on account of the person’s basic exemption for the year by one or more employers under section 8 and all amounts deducted as prescribed by or under a provincial pension plan on account of any like exemption for the year by one or more employers under that plan, and
367 Subsection 15(1) of the Act is replaced by the following:
Marginal note:Amount of salary and wages on which base contribution made
15 (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.
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