Calculation of CPP/QPP contributions

How does DT Max calculate the amount of contributions to the CPP or QPP?

DT Max uses the method of calculation used by each government respectively (federal and Quebec).

With the CRA, the deduction of CPP/QPP contributions from employment income is based on the amount of CPP/QPP that was actually deducted on the T4 and RL-1. If there is both employment income and self-employment earnings, and the amount of CPP/QPP was underdeducted on the T4 or RL-1, the CRA will use the amount that should have been deducted on the T4 or RL-1 in order to determine the amount payable on self-employment earnings and optional earnings (line 10 of schedule 8).

The MRQ calculates the deduction of CPP/QPP contributions on line 370 of the Quebec return as follows: if there is only employment income, the deduction of contributions will be the amount of CPP/QPP that should have been deducted on the T4 and RL-1. If there is both employment income and self- employment earnings, and the amount of CPP/QPP was underdeducted on the T4 or RL-1, the contribution payable on self-employment earnings will be based on the QPP workchart.

Since DT Max uses the method of calculation that is specific to each government for the deduction of CPP/QPP contributions, your clients should not receive any adjustment in that respect on their contribution notice. If you wish to change the method used, you may use the keyword QPP-METHOD .