Box 26 - CPP/QPP pensionable earnings

Box 26 must always be completed even if there are no pensionable earnings.

Enter the total amount of pensionable earnings paid to your employee, up to the maximum pensionable earnings for the year ($53,600 for 2015), even if you did not withhold CPP/QPP contributions on all or any of those earnings. This may happen if you give a non-cash taxable benefit to an employee but do not pay cash earnings during the year. If there are no pensionable earnings for the entire reporting year and boxes 16 and 17 are blank, enter "0" in box 26. In many cases, boxes 14 and 26 will be the same amount.

Reporting the correct CPP pensionable earnings in box 26 will reduce unnecessary pensionable and insurable earnings review (PIER) reports for CPP deficiency calculations, especially if the employee worked both inside and outside of Quebec.

For more information, go to Special situations.

• CPP
• QPP

CPP

Include the following types of remuneration in Box 14 – Employment income. However, do not include in Box 26 – CPP/QPP pensionable earnings:

1. Remuneration paid to the employee:
   • before and during the month the employee turned 18;
   • after the month the employee turned 70;
   • during the months the employee was considered to be disabled under the Canada Pension Plan or Quebec Pension Plan;
   • after an eligible employee, who is 65 to 70 years of age, gave you a signed copy of Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election with parts A, B and C completed;
   • before an eligible employee, who is 65 to 70 years of age, gave you a signed copy of Form CPT30 with parts A, B, and D completed.

   Note
   Information about when you should have started or stopped deducting CPP contributions and examples of how to prorate the maximum CPP contribution for the year to make sure you have deducted the correct amount can be found at Checking the amount of CPP you deducted.

2. Amounts paid to the employee for employment, benefits, or other payments, and no CPP contributions had to be deducted. For more information, see Special payments chart.
3. Amounts for a clergy member’s residence from which you did not deduct CPP contributions (if the clergy member gets a tax deduction for the residence, CPP contributions are not required).

Subtract any of the amounts noted above from the amount in box 14, and enter the difference in box 26. Do not change the amount in box 14.

QPP

Fill in box 26 when you deduct QPP from the employees earnings, regardless of their province or territory of residence.

More than one T4 slip for the same employee

When you give the same employee more than one T4 slip for the year, you should report the pensionable earnings amount for each period of employment in box 26 of each T4 slip.

Benefits and earnings taxable only in Quebec

Revenu Québec considers certain benefits and earnings to be pensionable earnings for employees working in Quebec. These include:

• employer-paid private health benefit plan premiums; and
• assumed earnings—persons 55 years of age or older whose hours of work are reduced by reason of phased retirement may choose, with their employers, to make contributions to the QPP on all or part of the amount of the reduction in remuneration.

For more information, see Guide TP-1015.G-V, Guide for Employers: Source Deductions and Contributions, or brochure IN-253-V, Taxable Benefits, which you can get from Revenu Québec.

The following examples show how to fill in boxes 14 and 26 of the employee’s T4 slip when you provide a benefit or earnings to an employee that is only taxable in Quebec. For information on how to complete the RL-1 slip, consult Guide RL-1.G-V, Guide to Filing the RL-1 Slip: Employment and Other Income.

Date modified:

2015-12-17