T4 Box 82 Taxi Driver income and CPP exempt

[PDot]

Client is over 65, under 70 and receiving T4A(P). His T4 has box 28 A ticked (CPP exempt). Software was generating CPP self-employment contributions on the return… So I filled out Schedule 8, said 2023 first month to elect to stop paying on self-employed earnings. Eerything was great, had client sign…efile and it gets rejected. Says “t4 earnings and need to make election on CPT30”
Firstly…shouldn’t the Box 28A CPP exempt box on the T4 stop this from generating?
The CPT30 doesn’t allow you to go retroactive so that’s not proper
So, I’ve gone back to the Sch 8 and put 2022 in the election year and it stops the CPP self-employment contributions.
I’m feeling confident that he isn’t required to pay the CPP self-employment, it’s just getting the software to cooperate while not triggering CRA to say to the client…you owe $6,900 and not $3,400

This Taxi driver thing has been a head scratcher right from the beginning. Box 82 on the T4 generates T2125 and behaves like self-employment income, but it’s EI insurable so goes on a T4. They are self-employed employees.

To complicate the situation, he has another T4 that had CPP Contributions made haha

Thanks

[Nezzer]

To qualify as “CPP exempt” for employment income (i.e. on a T4), his employer must file the CPT-30 (after the employee fills it out and gives it to the employer). CRA must have that CPT-30 on file. That may be why CRA is rejecting the EFILE.

If it’s actually self-employment income, there should be another tick box in TaxCycle to say, “No” - the taxpayer has not applied for self-employed EI benefits. I usually answer the message about that in the Review tab, but I’m not sure where it “goes”…probably on the S8.

Since the income is box 82 on a T4, I’m not sure which scenario applies. Maybe CRA’s EFILE system isn’t equipped to handle this situation? I would try getting the CPT-30 filed and see if that “cures” the problem. But, at this time of year, I expect it will take CRA a few months to process a CPT-30.

[PDot]

Thank you for your response Nezzer. It’s a strange one for sure. I did find this on another thread after, it’s from the Sch 8. According to this, i think he’s out of luck unless he filed a CPT30 already??