Why is the Canada Pension Plan significant for employers?

The significance of the Canada Pension Plan (CPP) for employers lies in the mandatory contributions they must make to support their employees' pension benefits. Under the CPP, employers and employees both contribute to the plan, which ensures that workers receive pension benefits upon retirement, as well as disability and survivor benefits. This shared responsibility helps fund a social safety net that benefits the wider workforce and contributes to economic stability.

Employers play a crucial role in the CPP system because they are required to match employee contributions, which not only increases the overall pension funds available to workers but also emphasizes the importance of retirement planning and security. This mandatory contribution reflects an understanding of the employer's responsibility towards their employees' long-term financial well-being, thus fostering a supportive work environment.

The other options do not reflect the established requirements or realities surrounding pension contributions. Employers are indeed obligated to contribute to the CPP on behalf of their employees, making this aspect a significant part of their payroll responsibilities.