Canada Pension Plan is withheld from wages earned, except the withholding stops each year as soon as the employee has earned the maximum pensionable earnings for that year.

Question

Quizplus · Accepted Answer

This is true. In 2021, the maximum pensionable earnings is $61,600. Once an employee has earned this amount in a year, the employer will stop deducting CPP contributions from their pay.

Canada Pension Plan Is Withheld from Wages Earned, Except the Withholding