The company is required by CRA to submit the financial statements detailing the contribution of employees towards the pension scheme. Nevertheless, in the recent past, the company has witnessed deficiencies in reporting of these statements to the authority. Furthermore, the financial statements only take account of the members' contribution to the pension scheme in the specific due year. Providing reports on the contribution by the members who turned 18 years old in the due year has become difficult for the company. Besides, accounting for the members who turned 70 years in the due year is also complicated. The reason is that those who turned 18 joined the scheme and those who turned 70 exited the plan. However, a procedure is necessary to ensure that the details about these categories of members get captured adequately.
The law requires that all the Canadian workers between the ages of 18 and 70 contribute to the pension plan. The contribution is directly dependent on an individual's annual earnings. All contributions must be calculated based on the set limit, which is adjusted regularly. Additionally, the plan is also liable to adjustments based on exemptions. Noteworthy, the employer is mandated to directly deduct pension plan payments and pay on behalf of the employee based on the set limit. The contribution gets shared on a 50/50 basis between the employer and the employee. Furthermore, an employee is expected not to be disabled for consideration in CPP. However, an individual who is 65 years and still working may choose to opt out of the plan. Casual labourers dont get considered in the contribution, but they can choose to pay. Employees who submit CPT30 form to stop contribution will still be accounted. The reason is that the request is still under consideration. Finally, those who have submitted the CPT30 form provoking the previous nomination to stop contributions also get included in the report.
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