Schedule 8: Contributions to the CPP or QPP

What's in this article?

 

What is this?

Schedule 8 is used to calculate the amount of Canada Pension Plan (CPP) and Québec Pension Plan (QPP) contributions that you must pay as an employee (based on your income) as well as the amount of contributions you will have to contribute as a self-employed individual (if applicable).

In addition to completing Schedule 8 when declaring self-employment, business, or professional income from a partnership, you must also complete Schedule 8 if you would like to increase your CPP or QPP contributions from employment income. You may elect to do this:

  • to include certain types of income not shown on a T4 (e.g. tips); or
  • if you have multiple employers and the CPP/QPP amounts being withheld is too low

You will also need to indicate on the Schedule 8 if, as a working beneficiary, you would like to stop contributing to the Canada Pension Plan (CPP). Residents contributing to the QPP cannot elect to stop contributions.

If you are an employee:

If you earned employment income in a province or territory other than Québec you can elect to stop contributing to the CPP by completing form CPT30: Election to Stop Contributing to the Canada Pension Plan or Revocation of a Prior Election. You cannot elect to stop contributing to the CPP until you are at least 65 years of age, and the election will remain in place until you turn 70 years of age or until you revoke the election (you will once again be required to fill out form CPT30 to revoke the election). You must give a copy to your employer(s) and submit the original to the Canada Revenue Agency.

If you would like to revoke your election to stop paying CPP contributions, you must again complete form CPT30, provide a copy to your employers, and submit the original to the appropriate taxation agency. You cannot revoke your election in the same year you elected to stop making contributions.

If you are only self-employed (no employment income):

If you are self-employed (and have no employment income) you must complete Part 4 of Schedule 8 when electing to stop CPP contributions. You cannot elect to stop contributing to the CPP until you are at least 65 years of age, and the election will remain in place until you turn 70 years of age or until you revoke the election.

If you would like to revoke your election to stop paying CPP, you must again complete the applicable section of Schedule 8, and file it with your return. You cannot revoke your election in the same year you elected to stop making contributions.

If you are an employee and self-employed:

Canada Revenue says…

If you have both employment and self-employment income, you can elect to stop contributing to the CPP on any employment income earned outside Quebec by completing Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election. Give a copy of Form CPT30 to all your employers, and send the original to the Canada Revenue Agency.

The election takes effect on the first day of the month following the date you give a copy of the completed Form CPT30 to your employer. This date will apply to both your employment earned outside Quebec, and self-employment income if you were not a resident of Quebec. If you were a resident of Quebec, this date will only apply to your employment income earned outside Quebec. For example, if you give Form CPT30 to your employer on June 22, 2016, the election will take effect on July 1, 2016.

However, if you want to elect to stop contributing to the CPP on your self-employment earnings (this only applies if you are resident in a province or territory other than Quebec) on an earlier date in 2015 than the effective date of the CPT30, also complete Schedule 8 or Form RC381, Inter-Provincial Calculation for CPP and QPP Contributions and Overpayments for 2015, whichever applies.

 

Am I eligible?

You must complete Schedule 8 if you need to calculate your required Canada Pension Plan (CPP) contributions and Québec Pension Plan (QPP) contributions or overpayment for the year.

You should also complete Schedule 8 if you want to stop or resume CPP contributions. In order to stop contributing to the Canada Pension Plan (CPP) you must meet the following conditions:

  • You are at least 65 years of age;
  • You are receiving either a CPP retirement benefit; and
  • You must have employment and or self-employment income

Note: You cannot elect to stop QPP contributions.

 

Where do I claim this?

Follow these steps in H&R Block’s tax software to file your 2015 taxes:

Important: Before you begin, you must ensure that you told that you are between 65 and 70 years of age. To do this:

  1. Click the HOME tab.
  2. Click the ABOUT YOU icon, then click the Your personal information link.

Once you have confirmed your age, continue to follow these steps to start/stop CPP contributions or make additional CPP or QPP contributions:

  1. Click the PREPARE tab.
  2. Click the OTHER icon. You will find yourself here:
  3. Under the SPECIAL SITUATIONS heading, click the checkbox labelled Contributions to the CPP or QPP (Schedule 8)

When you arrive at the Contributions to the CPP or QPP page, enter your information into the tax software.

 

Where can I learn more?