CPT30: CPP stops at 65 to 69 from the first of the next month

Who can file CPT30, and who can't?

An employee can elect only if every condition below is true, and you should ask for proof of the pension (such as the award letter), proof of age and a signed copy of the completed form canada.ca.

The employee gives a copy to you and to every current and future employer, then mails the original to the CRA at the address on the back of the form canada.ca. The current form is on the CRA's canada.ca.

Three groups never use it. The election doesn't affect employees working in Quebec, employees considered disabled under the CPP or QPP, or anyone who has reached 70, and you don't deduct CPP from those employees anyway canada.ca. An employee aged 60 to 64 who draws a CPP pension can't elect at all and keeps contributing canada.ca.

Which pay is the last one with CPP taken off?

The election takes effect on the first day of the month after you receive the completed form. You keep deducting CPP up to and including the last pay dated in the month the employee gave it to you canada.ca, then stop as of the first pay dated in the following month canada.ca. The pay date decides it, not the work period the pay covers.

Mailing the form to the CRA isn't enough. The CRA says an employee has not elected until the form is given to an employer, so keep deducting until a copy reaches you. You can accept a copy the employee already filed with a previous employer canada.ca.

A form dated in the future is generally refused. The exception is a payroll cutoff: in the CRA's example, a form signed July 25 and dated August 22 arrives in July, so the employer accepts it and stops CPP in the first pay period in September. If the date is too far ahead, return it and ask for it again closer to the effective date canada.ca.

How much CPP comes off in the election year? A worked 2026 example

When an employee stops partway through the year, the CRA's formula caps CPP at the months the employee was pensionable: take $74,600 minus the $3,500 exemption, multiply by the pensionable months, divide by 12, apply 5.95%, then subtract what you already deducted canada.ca. The pensionable months run up to and including the month before the election takes effect canada.ca.

Take an employee aged 67, paid $5,000 on the last day of each month, who hands you a CPT30 on June 22, 2026. The election starts July 1, so January to June are pensionable: six months.

The $1,680.90 sits under the $2,115.23 cap, so nothing is owed back. Your matching employer share stops in July too, which saves the business another $1,680.90 for the rest of the year.

The gotcha is the high earner. Monthly pay above $6,216.67 (the $74,600 YMPE over 12) hits the prorated cap before the election month. At $8,000 a month the deduction is $458.65, so four pays take $1,834.60, May takes only the $280.63 left under $2,115.23, and June takes nothing even though the election hasn't started yet.

CPP2 is prorated the same way on the band from $74,600 to $85,000: $10,400 × 6 ÷ 12 × 4% caps it at $208 for six months canada.ca. The full year figures are on the CPP max 2026 page.

What goes on the T4 after an election?

Amounts paid after an eligible employee gave you the CPT30 stay out of box 26 (CPP pensionable earnings) but still go in box 14 as employment income canada.ca. In the example above, box 26 shows only the January to June pay, and box 16 shows $1,680.90.

If the election covered the whole year, report "0" in box 26 and leave box 28 (the CPP exempt box) blank: the CRA lists that exact case among the times not to use box 28 canada.ca. See T4 boxes for the rest of the slip.

If payroll kept taking CPP after the effective date and you couldn't reimburse the employee during the year, show the total CPP deducted on the T4. The CRA credits the excess to the employee when they file, and you can ask for the employer's share back on canada.ca no later than 4 years after the end of the year of the overpayment canada.ca. More on that in CPP overpayment refunds.

Can the employee restart CPP later?

Yes, but not in the calendar year of the election. Section 12(1.1) of the Canada Pension Plan says an election takes effect the first day of the month after it's made, can be made only once a year, can't be revoked in the year it's made, and can't be made in a year in which one is revoked laws-lois.justice.gc.ca. The CRA puts it plainly: an employee can't start and stop paying CPP in the same calendar year canada.ca.

To revoke, the employee gives you a CPT30 with Parts A, B and D completed. The revocation is effective the first day of the month after you receive it, you restart CPP with the first pay dated in that month, and when you prorate you count the months that include the month the revocation takes effect canada.ca.

Why would anyone restart? Contributions after the pension starts go toward the post retirement benefit, which increases retirement income canada.ca. An election that is never revoked simply runs out at 70, when CPP stops automatically: earnings paid after the month the employee turns 70 aren't pensionable canada.ca.

How does a sole proprietor stop CPP on business income?

A client with only business income doesn't use CPT30. They elect in Part 1 of Schedule 8 by entering the start month on line 50372, which can't be earlier than the month they turned 65 and received a CPP or QPP pension, and they revoke with line 50374 canada.ca. For an election or revocation that begins in 2025, the deadline is June 15, 2027 canada.ca.

A client with both employment and business income outside Quebec elects with CPT30, and that election covers all their pensionable income from the first of the month after they gave it to an employer. Schedule 8 can set an earlier start for the business income only if they did file a CPT30 when they became employed that year canada.ca. A sole proprietor who elected on Schedule 8 and later takes a job outside Quebec has to file CPT30 in that year to keep the election valid canada.ca.

If any T4 shows QPP contributions, don't complete Schedule 8; the CRA points those clients to Form RC381 instead canada.ca.