Stopped CPP contributions in 2019, trouble with program to maintaining stopped status in 2021

[MDG]

I elected to stop CPP contributions on Self-employed income in 2019 and filed the appropriate Schedule 8.

In the 2021 Ufile program,  the Control page, Canada Pension Plan section, I am only responding to Prior CPP Election question "did you make an election in a prior year to stop contributing to the CPP?", with "Yes" input from the dropdown.

When I do the review, no warnings.  When I click on Tax Return, UFile is giving me an Electronic Filing Error, and stipulating : "you are at least 65 years of age but under 70, you received CPP/QPP retirement pension, and you have earned self-employment income.  You must identify if a Form CPT30 was completed to stop contributing to the CPP, or to revoke an election made in a prior year to stop contributing to the CPP and the date of the election ."

What is the proper fix fro this? 

Marc

[TheTaxSmith]

It's just a warning. If you have done what you said then all is ok. Your Yes response to the prior year was all that was needed.

[GTOG]

How do stop cpp on self employed income I cannot seem to find this out. 

[Geo123]

 

Hello GTOG,

All workers aged 65 to 70 years old must pay CPP contributions, even if they are receiving a Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) retirement pension.

As a recipient of the CPP who is working, you have to contribute to the CPP unless you are in one of the following situations:

a) You work in Quebec.

b) Your employment is not subject to CPP.

c) You are a self-employed worker and you live in Quebec.

d) You are at least 65 years old but less than 70 and have made an election to stop contributing to the CPP.

The program will produce a warning to inform you that you must indicate whether you have made a selection, because relevant information must be entered in the "Controls" section of the software.

To stop contributing to the CPP, you must have received CPP benefits and you must have received a T4A (P) slip.

An election filed using Form CPT30 applies to all income from pensionable earnings, including self-employment earnings.

As a self-employed individual, if you do not wish to contribute to the CPP, please follow the steps below:

1- On the "Left side menu on the Interview tab", select the "Controls" option.

2- On the "Canada Pension Plan" section, under "If you had employment earnings:", go to the question "Did you make a CPT30 election in 2022?". If you had both employment income and self-employment income in 2022 and wanted to elect to stop paying CPP contributions in 2022, answer "Yes" from the drop-down menu, then enter the election date.

3- On the section, "If you had self-employment income (see help?)", go to question "Did you want to stop contributing to the CPP on self-employment income?".

4- For the question, "If you answered Yes to the question above, enter the election date (01-mm- 2022 ) to stop contributing to the CPP (Schedule 8 L.50372) or to revoke an election made in a prior year to stop contributing to the CPP (Schedule 8 L.50374) ", click on the drop down menu and select "Elect to stop contributing to the CPP"and in the box to your right enter the date "(dd-mm-yyyy).

5 - Click on "Next" at the bottom of the page.

Schedule 8 will be generated by the program. In Part 3, the software will calculate your CPP contributions on employment income. In Part 4, the software will calculate CPP contributions on self-employment income and you had no employment income. In Part 5, the software will calculate for the CPP contribution on self-employment income, when you had an employment income.

For more information on the changes to the CPP rules, please visit the following links:

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/canada-pension-plan-cpp/changes-rules-deducting-canada-pension-plan-cpp-contributions.html

https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2013/workers-aged-60-over-make-sure-you-clear-on-cpp-contribution-rules.html