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New Member
posted Oct 30, 2019 6:58:37 PM

If an employer makes contributions to the company group RRSP for employees who are new to Canada and have not filed a tax return will they be penalized?

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3 Replies
Level 15
Oct 30, 2019 6:58:38 PM

Are you asking in this case if the employer will be penalized or the employee for not filing his tax return?

New Member
Oct 30, 2019 6:58:39 PM

Thanks for asking.

I'm asking if the employee will be penalized for the employer putting funds in their RRSP when they haven't yet filed a tax return, so therefore don't have an RRSP limit.

The CRA say mandatory RRSP contributions are not penalized, but GWL say employer contributions to a  group plan are not mandatory and so will be penalized.  

The company pays 4% to the plan after 3 months' employment, so it is considered a part of their total compensation package.

Level 15
Oct 30, 2019 6:58:41 PM

No, the employee won't get penalized - for more information please contact CRA directly so that they may advise you.

https://turbotax.community.intuit.ca/replies/2647704