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CPP amount for self employed incorrect


viperlife

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I'm having a bit of a problem that only my wife just pointed out to me.  I have been self-employed for a few years now, and it appears UFile is not calculating the amount I must pay as a self employed individual correctly.

According to my research I should be paying $4574.68, but UFILE keeps halving that amount in their calculations and and only making me pay $2497.19.  Please advise of how to correct, or at least if UFILE's calculations are correct.  I am so confused right now!!!!

It also appears that UFILE has caused me to underpay my CPP amounts on my prior year returns as well. 😱

Screen Shot 2022-02-13 at 9.40.58 AM.png

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Self-employed taxpayers are entitled to an income tax deduction equal to 50% of an individual’s self-employment tax liability from base contributions (original contributions before enhanced contributions came in). This is the employer's portion. It is what your form is showing. Ufile is handling everything correctly.

You will also receive a nonrefundable tax credit on the other half, the employee's portion, or a 15% of $2,077.50 tax saving.

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What you are paying is in box 7. Box 11 gives the value of the income deduction, not what you are paying. Box 10 shows the tax credit of which you'll receive 15% of off your taxes. If you don't believe me, perhaps the CRA. Look at Part 4 of Schedule 8:

https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packages-years/general-income-tax-benefit-package/5000-s8.html

 

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