An employer contributes $25,000 to a Registered Pension Plan on March 1, 2020. Each of the 15 employees in the plan has contributed $1,000 to the plan during 2020. The employer can deduct a maximum of $15,000 in contributions for the taxation year ending December 31, 2020.

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The employer can deduct the full amount of $25,000 contributed to the Registered Pension Plan for the taxation year ending December 31, 2020, as employer contributions to such plans are generally fully deductible in the year they are made, subject to the limits and rules set by the tax authority. The employees' contributions do not affect the deductibility of the employer's contributions.

An Employer Contributes $25,000 to a Registered Pension Plan on March