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CPP on business income paid pursuant to Section 96(1.1) of the Act


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Business income reported on a T5013 was paid under Section 96(1.1) to a retired partner and is not subject to CPP. It is properly coded as being paid to a non-active partner and is excluded from RRSP eligibility. However, it appears on Schedule 8 line 1 as pensionable net self employment earnings in error and CPP is calculated as payable. How can this be corrected?

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Hello CharlieCPA,

UFILE does not provide the option to indicate retired partner for any province (except Québec). In order to indicate that you do not wish to pay CPP contributions as a retired partner, you must enter your T4(A)(P) slip into your tax return. 

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There is no form T4(A)(P) related to this income. It is reported only on a T5013 along with instructions that it is not subject to CPP. Tax Prep software apparently accommodates this. If there is not a solution in the software I will have to file a T1 Adjust (which I did for 2021)

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