Summary Pensionable and insurable earnings - Canada.ca www.canada.ca
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This document provides information on pensionable and insurable earnings in Canada, including deductions, retirement income, and excluded earnings, and recommends contacting the CRA for further details.
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Slide Presentation (14 slides)
Key Points
- Pensionable and insurable earnings are important concepts in Canada's pension and employment insurance systems.
- Employers are responsible for deducting CPP contributions and EI premiums from employees' earnings and remitting them to the Canada Revenue Agency (CRA).
- Pensionable employment refers to any employment for which a pension plan or fund has been set up, and employees in pensionable employment make contributions to the CPP.
- Insurable employment refers to employment in which employees pay EI premiums, and insurable earnings are the total amount of earnings from all insurable employment.
- Contributions to CPP and EI are based on the employee's salary and wages, subject to certain adjustments and exclusions.
- Non-cash benefits are generally not considered insurable earnings, except for the value of board and lodging enjoyed by a worker if cash remuneration is also paid.
- If a portion of earnings remains unpaid in the course of insurable employment, it may still be included in insurable earnings under certain conditions.
- Workers or employers can request a ruling from the CRA to determine the worker's employment status and clarify any uncertainties.
Summaries
23 word summary
This document explains pensionable and insurable earnings in Canada, including deductions, retirement income, and types of excluded earnings. Contact CRA for more information.
97 word summary
This document explains pensionable and insurable earnings in Canada. Employers must deduct CPP contributions and EI premiums from most employee payments. The CPP is a retirement income plan for Canadian workers, while EI is based on total earnings. Pensionable earnings include income from pensionable employment, salary and wages under the Public Service Superannuation Act, and income from employment of registered Indians. Insurable earnings are paid by employers and must be received by the employee in relation to their employment. Certain types of earnings are excluded. Workers and employers can request a ruling. Contact CRA for more information.
177 word summary
This document explains the concept of pensionable and insurable earnings in Canada. Employers are legally required to deduct Canada Pension Plan (CPP) contributions and employment insurance (EI) premiums from most employee payments. The CPP is a mandatory retirement income plan for Canadian workers, and contributions are made by employees in pensionable employment regardless of their residency or citizenship status. The Employment Insurance program is based on total earnings, not the number of weeks worked. To determine if payments are considered pensionable and insurable earnings, it is important to understand the nature of the payments. Pensionable earnings include income from pensionable employment, salary and wages under the Public Service Superannuation Act, and income from employment of registered Indians. Insurable earnings are paid by employers and must be received by the employee in relation to their employment. Certain types of earnings, such as benefits in kind and allowances for special worksites or remote locations, are excluded from insurable earnings. Workers and employers can request a ruling to determine employment status. Contact the CRA's business enquiries line for more information.
320 word summary
This document provides information on pensionable and insurable earnings in Canada. All employers are required by law to deduct Canada Pension Plan (CPP) contributions and employment insurance (EI) premiums from most amounts they pay to their employees. The CPP is a mandatory plan that was established in 1966 to provide Canadian workers with a foundation for their retirement income. Employees who hold pensionable employment in Canada make contributions to the CPP, regardless of their residency or citizenship status. The Employment Insurance program, which replaced the unemployment insurance program in the 1990s, is based on total earnings rather than the number of weeks worked. In order to determine if payments made to an employee are considered pensionable and insurable earnings, it is important to establish the actual nature of the payments. Pensionable earnings include income from pensionable employment, salary and wages of contributors under the Public Service Superannuation Act, and income from employment of registered Indians if an election has been filed. Contributory salary and wages for CPP purposes are generally composed of income from an office or employment, including tips and gratuities, received in the year and calculated in accordance with the Income Tax Act. The contributory salary and wages of public servants under the Public Service Superannuation Act include non-taxable income. Insurable earnings are paid by employers and must be received and enjoyed by the employee in respect of their employment. Non-cash benefits are generally not considered insurable earnings, except for the value of board and lodging if cash remuneration is also paid. Certain types of earnings, such as benefits in kind, personal or living expenses, and allowances with respect to employment at special worksites or remote locations, are excluded from insurable earnings. The unpaid portion of earnings may be included in insurable earnings under certain conditions. Workers and employers can request a ruling to determine employment status. For more information, individuals can contact the CRA's business enquiries line.