Canada Pension Plan

Marginal note:Amount of employer’s contribution

• 9 (1) Every employer shall, in respect of each employee employed by the employer in pensionable employment, make an employer’s contribution for the year in which remuneration in respect of the pensionable employment is paid to the employee of an amount equal to the product obtained when the contribution rate for employers for the year is multiplied by the lesser of

  • (a) the contributory salary and wages of the employee for the year paid by the employer, minus such amount as or on account of the employee’s basic exemption for the year as is prescribed, and

  • (b) the maximum contributory earnings of the employee for the year, minus such amount, if any, as is determined in prescribed manner to be the salary and wages of the employee on which a contribution has been made for the year by the employer with respect to the employee under a provincial pension plan.

• Marginal note:Succession of employers

  (2) If, in a year after 2003, one employer immediately succeeds another as the employer of an employee as a result of the formation or dissolution of a corporation or the acquisition — with the agreement of the former employer or by operation of law — of all or part of a business of the former employer, the successor employer may, for the application of subsections (1) and 8(1) and section 21, take into account the amounts paid, deducted, remitted or contributed under this Act by the former employer in respect of the year in relation to the employment of the employee as if they had been paid, deducted, remitted or contributed by the successor employer. If the employer takes those amounts into account with respect to the employer’s contributions, the employer shall also take them into account with respect to the employee’s contributions.

• Marginal note:Self-employment succeeded by employment

  (3) For the application of subsections (1) and 8(1) and section 21, if a person, in a year after 2003, is self-employed, ceases to be self-employed and becomes an employee of a corporation controlled by the person, the corporation may

  • (a) take into account the amount of contributory self-employed earnings of the person in the year as contributory salary and wages paid by the corporation to the employee in that year; and

  • (b) take into account one half of the contributions by the person in respect of self-employed earnings in the year as an amount deducted, remitted or contributed in relation to employee’s contributions for that year, and one half of that amount as an amount remitted or contributed in relation to employer’s contributions for that year.