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T4 slips - income $3,500 or less

Noted a minor glitch which is easily adjusted/overwritten.
When employment income is recorded as $3,500 an amount is automatically inserted for CPP. The first $3,500 of employment income is supposed to be exempt of CPP.

I just added $3,500 income into my own 2018 return, it didn’t calculate any CPP owing. Is there perhaps other income on the return either from employment or self employment?

This was an entry made into a T4 slip not a T1 return.
An entry of $3,500 employment income (box 14) of the T4 brings up an adjusted CPP amount of $158.81 being suggested. Unless the “Ignore adjustments” box is ticked, this creates a unnecessary query in file. Carried over into the T1 return, this would result in a CPP overpayment being calculated.

According to Canada Revenue Agency, CPP contributions for 2018 is 4.95% on amounts in excess of the $3,500 basic exemption to a maximum of $2,593.80 (maximum pensionable earnings of $55,900).

in the T4 module, you need to set-up your pay period type (done on both Info page and on the T4 page above the ‘ignore adjustments’ checkbox) as well as the number of pensionable pay periods on the T4 page in order to TC to calculate the CPP correctly for you.

Thanks, we’ll watchout for that.