In Canada, both the employer and employee are responsible for contributing to the Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP).
The Canada Pension Plan (CPP) is a social insurance program that provides retirement, disability, and survivor benefits to eligible individuals. CPP deductions are made from employees' earnings as a payroll deduction, with both employees and employers contributing a percentage of the employee's income. These contributions help fund the CPP and are intended to provide financial support during retirement or in case of disability.
In Quebec, there is a similar program called the Quebec Pension Plan (QPP). If an employee is eligible to make contributions to QPP instead of CPP, these amounts would be remitted to Revenu Quebec instead of the CRA.
Click here to access the CRA's CPP overview
Click here for CPP contribution rates and maximums
Note: In 2024, the CRA implemented additional deductions (CPP2) for higher income earners. You can read more about this here.