|for CPP contributions, no later than four years from the end of the year in which the overpayment occurred|
|for EI premiums, no later than three years from the end of the year in which the overpayment occurred|
|for overpayments refundable due to a decision by the Minister of National Revenue or by the court, no later than 30 days after the decision is communicated to you or the employee.|
When the employer applies for a refund using form PD24, only the employer portion of the EI premiums or CPP contributions are refunded. If the employee has also overpaid and the T4 included incorrect insurable or pensionable earnings amounts, the employer must issue an amended T4 for the applicable taxation years. The amended T4 will show the revised amount of insurable or pensionable earnings (zero if appropriate), and the actual amount of premiums or contributions paid by the employee. The employee will then have to adjust their previously filed tax returns based on the revised T4, which will automatically trigger a refund of the overpaid EI premiums or CPP contributions.
Sometimes, wages are non-pensionable, which means CPP contributions are not payable on the earnings. Some wages are non-insurable, which means EI premiums are not payable on the earnings. If an overpayment is related to non-pensionable or non-insurable earnings, a ruling may be required from CRA. To request a ruling, see their web page How to obtain a ruling for CPP and EI purposes. A ruling must be requested no later than June 30th of the year following the year to which the ruling relates.
Employment Insurance Act See Part IV S. 95: Insurable earnings and collection of premiums - Overpayments and Refunds
Canada Pension Plan See S. 38 - Refunds of Overpayments
Revised: September 20, 2022
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