Guide to Global Payroll Management - 2020 - 11-135

A Primer on Payroll in Canada
a retiring allowance paid directly to the employee or former employee. However, an employer does not have to
deduct income tax on the allowance that is directly transferred to the recipient's RRSP/RPP. The amount transferred,
as well as any other retiring allowance, amounts paid to the former employee, will be reported by the employer on a
T4 slip for Canada Revenue Agency purposes.
Transferring a retiring allowance to an RRSP/RPP - Eligible Amount
Use years of service as listed below to determine the amount that is eligible for the retiring amount transfer,
however, limited to:
$2,000 for each year or part of a year of employment before 1996;
Plus
$1,500 for each year or part of a year of employment before 1989 in which any or all of the employer's contributions
to the Registered Pension Plan or Deferred Profit Sharing Plan was not vested in the employee's name when the
employer pays the retiring allowance.
Transferring a retiring allowance to an RRSP/RPP - Non-Eligible Amount
An individual cannot use years of service for 1996 and subsequent years to determine eligible transfer amounts. A
transfer of all or part of a non-eligible retiring allowance payment to an RRSP/RPP or a spousal RRSP can be
allowed as long as the individual has enough personal RRSP contribution room available.
Details of the transfer (please print):
Eligible amount $ _________________________________

Non-eligible amount $_______________________

Last name: _______________________________________ Usual first name and initials: __________________
Social insurance number: _______________________________________________________________________
Transfer funds to (please print):
Account Number (must complete): _________________________________________________________________
The cheque is to be made payable to: "Name of Financial Institution"
_____________________________________________________________________________________________
The cheque is to be sent to the following institution (if different from above):
_____________________________________________________________________________________________
Attention: (optional) ____________________________________________________________________________
Financial Institution address: Street: _______________________________________________________________
City: _______________________________________ Prov: ______________

Postal code: ______________

Please Note: Ensure this form is fully completed with the correct information or there may be a delay in your payment(s) being
transferred. You must provide the name of the institution we are to make the cheque payable to. Sufficient information must be
provided for the institution to identify your payment.
To the best of my knowledge, I, the undersigned have sufficient RRSP contribution room. I understand that any tax liability and fines
resulting from this transaction are mine.

Employee signature: ___________________________________

Date:______________________________

© The Canadian Payroll Association/L'Association canadienne de la paie 2020 11-135
Guide to Global Payroll Management - 2020

Table of Contents for the Digital Edition of Guide to Global Payroll Management - 2020
