Using the typical 2% matching example from above, the employee’s 2% is deducted from regular payroll and deposited prior to payroll expenses and typically the employer’s matching deposit would be deposited into a DPSP (Deferred Profit-Sharing Plan). The reason for the DPSP is because the employer’s deposits to an employee’s RRSP is considered a taxable benefit and must include payroll expenses whereas the DPSP is non-taxable and you can choose to include up to two years vesting on these deposits. This means that the deposits you make on behalf of your employees stays with the company for at least two years.