If you are between 60 to 70 year old and are collecting or considering to collect CPP, you need to understand the new CPP rules beginning January 2012.

Under the current rules (before January 1, 2012), as an employer you have to stop deducting CPP contributions from an employee’s pensionable earnings when the employee is 60 to 70 years of age; and gives you proof that he or she is receiving a CPP or Quebec Pension Plan (QPP) retirement pension .

New rules
Starting January 1, 2012, you may have to deduct CPP contributions from the pensionable earnings you pay an employee who is 60 to 70 years of age, even if the employee is receiving a CPP or QPP retirement pension.

Under the new rules, an employee who works and receives a CPP or QPP retirement pension will now have to contribute to the CPP if he or she is:
1. 60 to 65 years of age;
2. 65 to 70 years of age, unless the employee has filed an election with you or another employer to stop paying CPP contributions (the election will take effect on the first day of the month following the month the employee provides you with a completed and signed election form);
3. 65 to 70 years of age, if the employee revoked his or her election to stop paying CPP contributions in 2013 or later.

For more information, go to Changes in CPP Contribution Rules.