Which statement about CPP contributions is true?

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Multiple Choice

Which statement about CPP contributions is true?

CPP contributions are tied to pensionable earnings, but only up to a yearly maximum. This means only earnings up to the annual maximum pensionable earnings are subject to CPP, and then no further CPP contributions are due on earnings beyond that cap. The amount is shared between employee and employer, and in Quebec residents pay into the Quebec Pension Plan (not CPP). Part-time workers aren’t exempt—if their earnings are pensionable, CPP applies up to the cap.

CPP contributions are tied to pensionable earnings, but only up to a yearly maximum. This means only earnings up to the annual maximum pensionable earnings are subject to CPP, and then no further CPP contributions are due on earnings beyond that cap. The amount is shared between employee and employer, and in Quebec residents pay into the Quebec Pension Plan (not CPP). Part-time workers aren’t exempt—if their earnings are pensionable, CPP applies up to the cap.

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