Contribution year
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Contribution year
Both the employee and the employer can make contributions to the employee's PRPP. However, the contribution year for employees and employers are different.
Contribution made by the employee
Generally, the contribution year is the period that:
- begins on the 61st day of a year, the last 10 months of the tax year (March to December); and
- ends on the 60th day of the following year (ordinarily January 1st to March 1st of the following year).
Example
The 2016 contribution year begins on the 61st day of 2016 (March 1st) and ends on the 60th day of 2017 (March 1st). Each contribution receipt slip for a particular contributor to a particular plan would provide a breakdown of the total contributions made during the following periods: March 1st, 2016 to December 31st, 2016; and January 1st, 2017 to March 1st, 2017.
If the end of the previous contribution year falls on Saturday, a Sunday or a public holiday, the preceding contribution year ends on the first business day that follows that Saturday or Sunday, and the start of the current contribution year begins on the day after that first business day.
Example
The 2015 contribution year which begins on the 61st day of 2015 (March 2nd, 2015) and ended on the 60th day of 2016 (February 29th, 2016, leap year). Each contribution receipt slip for a particular contributor to a particular plan would have provide a breakdown of the total contributions made during the following periods: March 2nd, 2015 to December 31th, 2015 and January 1st, 2016 to February 29th, 2016.
Contribution made by the employer
The employer contribution is made during the tax year, which begins on January 1st and ends on December 31st.
- Date modified:
- 2016-11-09