Many Canadians rely on the Canada Pension Plan (CPP) for financial support when they retire. You can to the CPP if you had income from which CPP contributions weren’t already deducted or if you paid less than the required amount. This can happen if you had income from sources like tips or casual work, or if you had more than one employer during the year.
You can contribute 9.9% on any part of the income (if your earnings are between $3,500 and $54,900) you haven’t already contributed on. Keep in mind, the maximum contribution for 2016 for employees is $2,544.30 and for self-employed individuals is $5,088.60.
To start contributing to the CPP, you’ll need to use form CPT 20: Election to pay Canada Pension Plan contributions. If 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.
Where do I claim this?
- On the PREPARE tab, click the OTHER icon. You’ll find yourself here:
- Under the SPECIAL 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.