You can choose to pay additional Canada Pension Plan (CPP) contributions on your T4 slips if you earned income on which CPP wasn’t deducted or the required amount wasn’t deducted. This might happen if:
- You had more than one employer in 2017
- You had income (such as tips) from which your employer did not deduct CPP or
- You earned income from employment that is not covered under CPP rules (such as casual employment)
You can contribute 9.9% on any part of your income (if your earnings are between $3,500 and $55,300) you haven’t already contributed.
Note: The maximum federal contribution for 2017 for employees is $2,564.10 and for self-employed individuals is $5,128.20.
What if I want to start or stop my CPP contributions?
To start additional contributions to the CPP, you’ll need to use form CPT 20: Election to pay Canada Pension Plan contributions and Contributions to the CPP or QPP (Schedule 8).
If you’re an employee who is between the age of 65 and 70 and you want to stop contributing to the CPP all together, you’ll need to use form CPT 30: Election to stop contributing to CPP, or revocation of a prior election. If you stopped contributing to the CPP during the year and want to restart your contributions, you’ll need the CPT30 form you completed to fill out the Contributions to the CPP or QPP (Schedule 8) page in H&R Block’s tax software.
Where do I enter this?
Follow these steps in H&R Block’s 2017 tax software:
- On the PREPARE tab, click the OTHER icon. You’ll find yourself here:
- Under the OTHER SITUATIONS heading, select the checkbox labelled Contributions to the CPP or QPP (Schedule 8), then click Continue.
- When you arrive at the page for Contributions to the CPP or QPP, answer Yes to the question Do you elect to pay additional CPP/QPP contribution on multiple T4 slips?, and enter your information into the software.