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Returning Member
posted Apr 6, 2023 7:15:35 AM

Is Employer contribution to RPP ends with double taxed to Employees

I am wondering if an Employer contribution to Employee's RPP account is taxed two times.

1) First time for the year, when Employer contributed to Employee's RPP account.

2) And second when the Employee withdraws that amount from the RPP account.

 

I found in my case that Employer contribution is not coming out as tax deductible and I am paying tax on it while filing the tax.

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1 Replies
Intuit Alumni
Apr 11, 2023 4:34:20 AM

Here is the information from the Canada Revenue Agency's about the Registered Pension Plans for employers.

As per our TurboTax article: RPP Vs RRSP: Contribution Limits & Tax Implications 

If you are a participant in an RPP, you can deduct your employee contributions from your income on line 20700 of your return. The income earned by the plan is not taxable and you are not required to report it.

However, when you retire and begin to receive benefits from the plan, you will then need to include these payments in your income for the year when they are received. You either declare the income on line 11500 if you are receiving an annuity income which is a periodic-payment or on line 13000 if you are receiving a lump-sum payment.

 

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