Elected to stop CPP deduction

[Rashida Manji]

I mailed CPT30E form to CRA and gave copy to my employers to stop CPP deduction in 2023. Box 16 on  my T4 is blank and I have warning on UFile saying that I have employment income and not exempt from paying CPP. Can you please help. Not sure where to report my election to stop CPP contributions on UFile

[Geo123]

Hello Rashida Manji

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 example is 2022)

 
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 2023?". If you had both employment income and self-employment income in 2023 and wanted to elect to stop paying CPP contributions in 2023, 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- 2023 ) 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