Each year the government sets a maximum pensionable earning amount and a rate to calculate the CPP deduction. For example, in 2021 you stop deducting CPP contributions when you reach the employee’s pensionable earning amount, which is $61,600 or the maximum employee contribution for the year, which is $3,166.45. You can also use the payroll deduction tables to calculate the CPP deduction.
For up-to-date rates, you can check the Canada Pension Plan website.
You have to deduct CPP contributions from an employee’s remuneration if that employee is:
You generally deduct CPP contributions from the following amounts:
You also must contribute the same amount of CPP that is deducted from your employee.
(Assuming the employee’s annual earnings are $61,600, there are 12 pay periods and using 2021 rates)