Friday, 11 January 2013

Between 65 and 70 and Receive CPP? You May have to Pay CPP

If you were between sixty five and seventy years old in 2012, receive CPP income and earn employment income you must file a CPT30 with your employer and submit the original to Canada Revenue Agency (CRA) otherwise the employer is obliged to deduct CPP from payments to you. You certainly do not wish to pay  CPP as you applied to receive CPP before attaining age seventy.  So your preference is  not to pay it. Therefore, you must make the election. You must submit the original CPT30 to CRA in time for them process it before your 2012 personal tax return (T1) is assessed. Otherwise they may assess you CPP. Maximum CPP for 2012 is $2,356.20 for each the employer and the employee.  Therefore, you could be assessed for twice that amount if your employment income exceeds $51,100.

If you only have self employment income you can make the election not to pay CPP on Schedule 8 of your personal tax return.

Check the link below for for form CPT30

http://www.cra-arc.gc.ca/E/pbg/tf/cpt30/cpt30-11e.pdf

Get more tax information and Q&A letters from our website www.tavana.ca

This blog is for general information only and cannot replace professional advice.
The reader is invited to contact the writer to discuss the contents of the newsletter.
Readers are advised to seek professional advice before acting on the material
in this newsletter

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