When to mark an employee as exempt from CPP
Mark an employee as exempt from CPP
Restart CPP contributions for an employee marked as exempt
When to mark an employee as exempt from CPP
You can mark an employee as exempt from CPP in Wave if they do not receive pensionable earnings, or if they are deemed disabled under the CPP. Employees under 18 and over 69 are also exempt from CPP contributions, but Wave automatically exempts them for you.
CPT30 elections are not supported in Wave.
Mark an employee as exempt from CPP
- On the left-side menu, click Payroll > Employees.
- Select the employee.
- Click Tax Details from the left menu.
- Scroll down to the bottom, and select Change Status under Canadian Pension Plan exemption.
- Enter an effective date.
When does Wave stop deducting CPP?
Once you mark an employee as exempt, Wave will stop deducting CPP on the first paycheque with a payday in the month after the exemption date you select. For example, if you run a weekly payroll and select an exemption date of April 25th, CPP deductions will stop on the first paycheque with a May payday. See the guidelines from CRA for more information.
Restart CPP contributions for an employee marked as exempt
- On the left-side menu, click Payroll > Employees.
- Select the employee.
- Click Tax Details from the left menu.
- Scroll down to the bottom, and select Change Status under Canadian Pension Plan exemption.
- Enter an effective date.
When does Wave restart deducting CPP?
Wave will start deducting CPP on the first paycheque with a payday in the month after the exemption date you select. For example, if you run a weekly payroll and select an exemption date in April, CPP deductions will start on the first paycheque with a May payday. See the guidelines from CRA for more information.