Modification of Schedule 8 - CPP Contributions

Program(s) affected: T1 Document created: 04 27, 2015 Tax year(s): 2014 Document last modified: Version(s): 18.10, 18.11, 18.12, 18.20 Problem status: Pending

Schedule 8, CPP Contributions, has been modified in April 2015 by the CRA. In what situation may this change affect my client?

1. The taxpayer is a resident of a province other than Quebec.

2. The taxpayer received a T4 slip from a province other than Quebec with a pensionable income amount (box 26 of the T4 slip) that is lower than the annual basic exemption ($3,500, or as per the Schedule 8 table if the CPP does not apply for 12 months).

3. The taxpayer has a pensionable self-employment income or an income for which they made an election on Form CPT20, and the total of those income amounts is higher than the maximum amount of insurable earnings, which is $49,000 ($52,500 – $3,500) or less if the CPP does not apply for 12 months.

If all these conditions correspond to your client's situation, the calculation on lines 17 to 19 will be inaccurate. Line 17 has been modified as "Enter the amount from line 4 of Part 3 minus line 2 of Part 3", and line 18 has been modified as "Enter the amount from line 4 minus line 13". You can rectify this situation and obtain the expected result by following these steps:

• Indicate at the keyword CPP-Earn an amount of $3,500 (or as per the Schedule 8 table, if the CPP does not apply for 12 months).

• If you are efiling the return, use the keyword Efile-OV , select the option "federal" and, for the keyword Dollar , choose the option "5549 Total CPP pensionable earnings" and indicate the amount from box 26 of the T4 slip.