CPP - Self-employed - Stop CPP contributions
All workers aged 65 to 70 years old must pay CPP contributions,
even if they are receiving a Canada Pension Plan (CPP) or Quebec
Pension Plan (QPP) retirement pension.
As a recipient of the CPP who is working, you have to contribute
to the CPP unless you are in one of the following situations:
a) You work in Quebec.
b) Your employment is not subject to CPP.
c) You are a self-employed worker and you live in Quebec.
d) You are at least 65 years old but less than 70 and have made an
election to stop contributing to the CPP.
The program will produce a warning to inform you that you must
indicate whether you have made a selection, because relevant
information must be entered in the "Controls"
section of the software.
To stop contributing to the CPP, you must have received
CPP benefits and you must have received a T4A (P) slip.
An election filed using Form CPT30 applies to all income
from pensionable earnings, including self-employment
earnings.
As a self-employed individual, if you do not wish to contribute
to the CPP, please follow the steps below:
1- On the "Left side menu on the Interview
tab", select the "Controls"
option.
2- On the "Canada Pension Plan" section, under
"If you had employment earnings:", go to the
question "Did you make a CPT30 election in 2019?".
If you had both employment income and self-employment income in
2018 and wanted to elect to stop paying CPP contributions in 2018,
answer "Yes" from the drop-down menu, then enter
the election date.
3- On the section, "If you had self-employment income
(see help?)", go to question
"Did you want to stop contributing to the CPP on
self-employment income?".
4- For the question, "If you answered Yes to the
question above, enter the election date (01-mm- 2019 ) to stop
contributing to the CPP (Schedule 8 L.50372) or to revoke an
election made in a prior year to stop contributing to the CPP
(Schedule 8 L.50374) ", click on the drop down menu
and select "Elect to stop contributing to the CPP"and in
the box to your right enter the date
"(dd-mm-yyyy).
5 - Click on "Next" at the bottom of the
page.
Schedule 8 will be generated by the
program. In Part 3, the software will
calculate your CPP contributions on employment income.
In Part 4, the software will calculate CPP
contributions on self-employment income and you had no employment
income. In Part 5, the software will
calculate for the CPP contribution on self-employment income, when
you had an employment income.
For more information on the changes to the CPP rules, please
visit the following links:
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/canada-pension-plan-cpp/changes-rules-deducting-canada-pension-plan-cpp-contributions.html
https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2013/workers-aged-60-over-make-sure-you-clear-on-cpp-contribution-rules.html
ID: 20191108142344NI.xml
Webpage: KPA320-20191108142344NI.htm
