Published | Category: Source deductions and contributions

Voluntary Retirement Savings Plan

The information in sections 2.13 and 5.4.1.6 of the 2014 Guide for Employers published in November 2013 has been updated to reflect the provisions of the Voluntary Retirement Savings Plans Act, which was assented to on December 4, 2013.

Contribution to a VRSP or a PRPP

You must deduct the voluntary retirement savings plan (VRSP) or pooled registered pension plan (PRPP) contribution from the employee's gross remuneration for a pay period and remit the amount to the VRSP or PRPP administrator. If you contribute to a VRSP or a PRPP on behalf of an employee, the contribution does not constitute a taxable benefit for the employee.

The rules related to a VRSP will apply as of July 1, 2014.

PRPPs are offered by employers whose business activities are under federal jurisdiction.

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