Trying to opt out of client’s CPP on self employment earnings. turned 65 in September, had employment earnings in January but that was it and was also receiving CPP benefits for the year. Keep getting a 2112 filing error from CRA,
You made an entry at box 50372 of Schedule 8, CPP Contributions on Self-Employment and Other Earnings, or in Part 2 of Form RC381, Inter-Provincial Calculation for CPP and QPP Contributions and Overpayments, to indicate the month in 2022 you chose to start your election to stop contributing to the CPP on your self-employment income. This election is available to individuals at least 65 years of age, but under 70, who are receiving a CPP or QPP retirement benefit.
Ensure your CPP or QPP retirement benefit is included in your income on line 11400 of your return. In addition, please carefully review your T4A(P) slip:
1. If there is an entry in box 23 of your T4A(P) slip, your software should generate an entry on line 55400 to indicate the number of months you received the CPP or QPP retirement benefit.
2. If there is no entry in box 23 of your T4A(P) slip, it indicates you received a CPP or QPP retirement benefit from a pension sharing arrangement for which you never contributed to the CPP or QPP. If this is the case, you cannot elect to stop contributing to the CPP. Please delete the entry at box 50372.
Not sure why - I put the opt out as of the 10th month?? Any ideas?? It’s not a huge amount, but just wondering why it will not accept it?
I had 2 clients in same situation this year. I just put the month in on Schedule 8 and that was it.
Have you checked those lines that they’re referring to?
I believe that’s your problem. Schedule 8 would be used to stop paying CPP if you only had self-employment income. If your client’s also received employment income (reported on a T4), you need to fill out form CPT30.
Just above line 50372 where you would enter the month to stop contributing to CPP there’s a pretty good explanation as to when you can use Schedule 8 and when you need to use form CPT30.
Thank you for your help. The employee was 64 when employed for the one month and then became self employed in June 2022. She has no employer to provide this form to - so do we just fill in the form and submit to CRA? The form also says no backdating so can we date in 2023 and apply this to her non-existent employment earnings after turning 65 as well as her self employment earnings?
As @RichJ has indicated you can not use Schedule 8 to make an election to stop contributing to the Canada Pension Plan *** if *** you had employment earnings (ie a T4 slip) at any time during 2022. In the case of both employment earnings and self employed earnings the CPT30 needs to be submitted to the CRA. It doesn’t matter whether or not the individual is employed at the time. The only reason you provide a copy of the CPT30 to your employer is to give them authority to not deduct CPP from your pay.
TaxCycle has a diagnostic message with this same 2112 error as you received from CRA if you try to enter a month in block 50372 when the individual had employment earnings and self employed earnings.
An entry was made for electing to stop CPP contributions on self-employment earnings. To make this election, the client must be 65 or older and have received a CPP/QPP retirement pension for the month entered, as well as not have any T4 employment earnings in the year. (#2112)
Snip from the Schedule 8: