CA Tax Tools

T4 Box 16A — Employee's second CPP contributions (CPP2)

CPP2 contributions on pensionable earnings between the YMPE and the YAMPE — introduced in 2024 for higher earners, at a flat rate specified in the CRA CPP enhancement schedule.

At a glance — Box 16A

Box name
Employee's second CPP contributions (CPP2)
T1 line
Line 22215 — CPP enhancement deduction
Check against
CPP2 rate × (earnings above YMPE up to YAMPE). See year-notes block for the current year's max CPP2 contribution.

What Box 16A means

Box 16A was introduced for 2024 to show your "second additional" CPP contributions (CPP2). These apply only if your pensionable earnings exceed the YMPE.

CPP2 is a flat rate (per the CRA CPP enhancement schedule) on earnings between the YMPE and the YAMPE (Year's Additional Maximum Pensionable Earnings). CPP2 expands your future retirement benefit for income above the first CPP ceiling.

Quebec workers see the equivalent in Box 17A for QPP2, not Box 16A.

Tax return implications

  • Fully deductible at Line 22215 (not credited) — reduces your taxable income.
  • Mirrored on the employer side: your employer also pays the same CPP2 rate on the same earnings.

For 2025 returns (file T1 by April 30, 2026 — self-employed June 15)

Max CPP2 contribution (2025)
$396
4% × (YAMPE $81,200 − YMPE $71,300). CPP2 kicks in for pensionable earnings above the first ceiling.
YMPE / YAMPE (2025)
$71,300 / $81,200
First-ceiling YMPE $71,300 (CPP base + enhancement); second-ceiling YAMPE $81,200 (CPP2). Basic exemption $3,500 (§ITA 20(1)(j)).

Values sourced from central CPP / EI config at build time — update automatically on FY rollover.

FAQ

Do I always have CPP2 if I earn over the YMPE?

Yes — if any of your pensionable earnings fell between the YMPE and YAMPE, CPP2 was withheld automatically. Self-employed earnings above the YMPE are similarly subject to CPP2.

Related T4 boxes

Filing your return? Use the payroll deductions calculator to verify the amounts on your T4 match expected CPP, EI and income tax withholdings, and the income tax calculator to estimate your refund or balance owing.

Sources

T4 box definitions from CRA T4 employer guide. Rates and thresholds current for 2025; file your 2025 T1 by April 30, 2026 (self-employed June 15).

Last updated April 28, 2026Tax year 2026

Data sources: CRA (canada.ca)

This tool is general information only, not financial advice.

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