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Quickbooks Payroll second Canada Pension Plan (CPP)

by Intuit Updated 6 months ago

What are CPP/QPP contributions?

The Canada Pension Plan (CPP) retirement pension is a monthly, taxable benefit that replaces part of your income when you retire. If you qualify, you’ll receive the CPP retirement pension for the remainder of your life.

If you are older than 17 but younger than 70, employed in pensionable employment, and don't receive a CPP retirement or disability pension, an employer will deduct CPP contributions from your pay.

With a few exceptions, all employees pay CPP at a rate outlined by the CRA.

What is second additional CPP/QPP?

Starting in January 1, 2024, a second earnings ceiling of $73,200 will be used to determine additional CPP contributions for employees. As a result, earnings between $68,500 and $73,200 will be subject to additional CPP contributions.

Employee and company contribution rates for earnings up to $68,500 will be 5.95%
Employee and company contribution rates for earnings between $68,500 and $73,200 will be 4%.

Visit this website for more information on CPP enhancements and second CPP.

How to view second CPP for your employees in QuickBooks

QuickBooks Online Payroll

  1. Select Payroll, then select Employees.
  2. Select the employee, then select Paycheque list.
  3. Select the paycheque and scroll down to the Employee taxes or Employer taxes section. You will see a separate line item for Second Canada Pension Plan.

Note: You will only see an amount for Second Canada Pension Plan after your employee has reached the earnings threshold outlined by the CRA.

QuickBooks Desktop Payroll

  1. Select Employees, then select Employee Centre.
  2. Select the employee, then select their paycheque to open.
  3. Select Pay Cheque Details. You will see a separate line item for Second CPP - Company and Second CPP - Employee in the Company Summary and Employee Summary sections.

Note: You will only see an amount for Second Canada Pension Plan after your employee has reached the earnings threshold outlined by the CRA.

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