Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.
The basic exemption is an amount set out by the federal government that CPP is not charged against. It is still included in the year’s pensionable earnings amount; however it is excluded from the CPP deduction calculation. The basic exemption amount set by the federal government is divided by the number of pay periods during the year, dependent on pay frequency.
