15. Am I entitled to participate in the Canada Pension Plan (CPP)?

You are required to participate in the CPP as soon as you start working in Canada. Contribution rates are thresholds are indicated on page 17 of BDO’s Tax Facts 2013.

Contributions of 9.9% are payable on salary over $3,500. The maximum income subject to contributions is $47,600. Contributions are paid 50% by the employer and 50% by the employee, and employee contributions are withheld from salary. Therefore, the maximum employee contribution is $2,356.20 for 2013.

There is no minimum contribution period or amount for benefits to vest. The CPP is a contributory pension plan, so benefits are based on the amount of employer and employee contributions made

over time. Benefits can be applied for as early as age 60. For more information, visit the CPP website.

For U.S. residents, CPP benefits are not subject to Canadian taxation under the terms of the Treaty, and are taxable in the U.S. under the same rules that apply to Social Security benefits.