Canada Pension Plan is levied equally on the employee and the employer.Group startsTrue or False

True.

The Canada Pension Plan (CPP) contributions are indeed levied equally on both employees and employers. This means that both parties contribute an equal percentage of the employee’s earnings up to a certain limit. The CPP is designed to provide retirement, disability, and survivor benefits to Canadians, and the shared contribution model helps to fund these benefits effectively.

For 2023, for example, the contribution rate for both employees and employers is set at 5.95% of pensionable earnings. Therefore, if an employee contributes a certain amount, the employer contributes the same amount, highlighting the equal sharing of contributions towards the CPP.