Question

Payments and benefits subject to CPP contributions generally fall into the following categories:

a) Salary, bonuses, and healthcare benefits
b) Pension contributions, life insurance, and stock options
c) Overtime pay, travel allowances, and employee discounts
d) Wages, salaries, commissions, and taxable benefits

Answer 1

CPP contributions include wages, salaries, commissions, and taxable benefits. Defined benefit plans like traditional pensions are being replaced by defined contribution plans such as 401(k)s. These newer plans offer employer contributions, tax advantages, and portability.

Step-by-step explanation:

The categories that generally fall under the Canada Pension Plan (CPP) contributions include wages, salaries, commissions, and taxable benefits. These are the types of payments and benefits to which contributions are made by both the employer and the employee. Items such as overtime pay, travel allowances, and employee discounts may also be subject to CPP contributions depending on various factors and legislation.

Traditional pensions, often known as defined benefit plans, are becoming less common and are being replaced by defined contribution plans, such as 401(k)s and 403(b)s. In these plans, an employer contributes a fixed amount to an employee's retirement account regularly, and the employee may contribute as well. The employee then invests these funds, and these plans often offer tax advantages and portability.