Only for-profit making companies are eligible to sponsor a DPSP, and only employers can contribute to the plan. Contributions are tax-deductible for the employer and must be made no later than 120 days after the end of the fiscal year. There is no requirement for an employer to make contributions if they did not generate enough revenue.
Connected shareholders cannot participate in the DPSP (e.g., corporation owners, their relatives and spouses and anyone with more than a 10% stake in the company).