More CPP Changes – Effective January 1, 2012
Earlier this month the Canada Revenue Agency issued this statement about a change to CPP and how it will apply to Wage Loss Replacement Plans (WLRP):
“In December 2011, new CPP legislation clarified that all payments made from uninsured WLRPs are considered to be remuneration from pensionable employment. This legislation is retroactive to January 1, 2006. Employers who have not deducted CPP on uninsured WLRP payments in the past, whether those plans follow insurance principles or not, should start doing so effective January 1, 2012. Employers who deducted CPP on these WLRP will not be refunded those deductions. However, the Canada Revenue Agency will consider any request it receives from employees to review their particular situation on a case-by-case basis.”
More information can be found at the Towers Watson website: