TaxTips.ca
Canadian Tax and
Financial Information
CPP and EI Overpayments

Ads keep this website free for you.
TaxTips.ca does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?
See
USTaxTips.net

Need an accounting, tax or financial advisor? Look in our Directory.      Stay Connected with TaxTips.ca!

Home
What's New
Calculators
Personal Tax
Business
Sales Taxes
Free in 30!
Financial Planning
RRSP RRIF TFSA
Real Estate
Stocks Bonds etc.
Seniors
Disabilities
Canada
Alberta
British Columbia
Manitoba
Ontario
Quebec
Saskatchewan
Atlantic Provinces
Territories
Federal Budget
Provincial Budgets
Statistics etc.
Glossary
Site Map
Directory
Advertise With Us
Contact Us/About Us
Links & Resources



Filing Your Return  ->  Canada Pension Plan (CPP) and Employment Insurance (EI) -> Getting Back Overpaid CPP QPP or EI Premiums

How do I Get Back CPP, QPP or EI Premiums that I overpaid?

Sometimes, an employee may pay too much Canada Pension Plan (CPP), Quebec Pension Plan (QPP), or Employment Insurance (EI) premiums during the year.  Usually this is because the employee has changed jobs.  When a new job is started, CPP/QPP and EI premiums are calculated without regard to premiums paid at the old job, so it is possible to pay more than the maximum annual amount.

When you file your tax return, you will fill out Schedule 1 for your non-refundable tax credits.  On line 308 you will enter the lesser of

bullet the CPP or QPP premiums you paid during the year, or
bullet the maximum annual CPP/QPP premiums that should have been paid

On line 310 you will enter the lesser of

bullet the EI premiums you paid during the year, or
bullet the maximum annual EI premiums that should have been paid

Unless you are a resident of Quebec, any excess CPP premiums that you paid should be entered on line 448 of the tax return.

Any excess EI premiums should be entered on line 450 of the federal tax return.

There may be a situation where the CPP or QPP and EI premiums have been overpaid, even though the maximum amount of premium for the year was not paid.  If you are filing your tax return manually, you will enter on lines 308 and 310 of schedule 1 the actual amounts of CPP or QPP and EI premiums paid.  It is not necessary to calculate the overpayment yourself.  When Canada Revenue Agency (CRA) receives your tax return, it automatically calculates any overpayment and refunds it to you.  If you use tax software to file your return, any overpayment should automatically be calculated, and entered on lines 448 for CPP and 450 for EI.

If there has been a ruling that your employment earnings were not insurable or pensionable, and you have paid premiums for prior taxation years for these earnings, your employer must issue a revised T4 showing zero insurable or pensionable earnings (if that is the case), but showing the actual EI premiums or CPP contributions paid .  You must then amend your previously filed tax returns based on the revised T4s, which will trigger a refund.  See our article for businesses on recovering overpaid EI premiums or CPP contributions.

CRA has a form on which you can calculate your overpayments, if desired.  It is form T2204 - Employee overpayments of CPP contributions and EI premiums.  This form would be submitted with your tax return.

For more information on and annual maximums for CPP, QPP and EI premiums, see our CPP and EI page.

Quebec residents - CPP/QPP overpayments

Quebec residents will claim any overpayment of CPP or QPP on line 452 of the Quebec tax return.  If CPP or QPP has been overpaid, even though the maximum amount of premium for the year was not paid, Revenue Quebec will calculate the overpayment.  To ensure that they calculate the overpayment properly, the total CPP and QPP paid must be entered on line 98 of the Quebec income tax return.

Income Tax Calculators

Our Tax Calculators will display the amount of CPP or EI that you should have paid in the year.  You can deduct this from what you actually paid to estimate your refund of CPP or EI from CRA.  There is no entry field at present to enter the amount of CPP or EI that you have paid.

See also:  Employers - Recovering EI and CPP overpayments

Revised: October 31, 2017

 

Copyright © 2002 - 2017 Boat Harbour Investments Ltd. All Rights Reserved  See Reproduction of information from TaxTips.ca

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.