Reporting Pension Contributions and Adjustments The following are some general year-end reporting guidelines employers should follow when reporting pension contributions and pension adjustments (PAs):
a). employee contributions to a registered pension plan (RPP) are tax deductible; they are reported in box 20 on the T4 slip
b). employee and employer contributions to a defined contribution pension plan are part of the PA that is reported in box 52
c). PAs are reported on the T4 slip; however, under certain conditions the PA may be reported on the T4A slip
d). employee contributions to a Registered Retirement Savings Plan (RRSP) are not reported by payroll; the employee will receive a tax receipt from their financial institution
e). employer contributions to an employee’s RRSP are reported on the T4 slip in box 14 and in the Other Information area using code 40 as they are a cash taxable benefit, subject to CPP contributions and EI premiums

Question:
Your organization currently has a defined contribution pension plan with employees contributing up to 3% with a company match. Effective with the first pay of the new year, new employees will no longer be enrolled in that plan. Instead, they will be enrolled in the new Group Registered Retirement Savings Plan (RRSP) with the same contribution options. In your own words, explain the difference in the T4 information slip reporting for these two groups of employees.

Answer rating: 100% (QA)

Defined Contribution pension plan contributions arise from what CRA refers to as pensionable earning... View the full answer