Hi mates, I am new here and really delighted to discover this amazing educative community.
Please someone should help clarify me something about CPP contributions. According to my client’s T4 slips, employee CPP contributions from the 2 slips amounted to $4,267.00 and is shown under non-refundable tax credits on line 30800. But still, CPP contributions of $838.00 is shown on line 22200 as a deduction under net income. After I sent him his T1 summary to review and consent so I can EFILE it, he said the CPP contributions look weird to him cause he contributed way more than that, and I was like confuse because he has had only 2 employers so far and I correctly entered both T4 slips. Please I wish to know the difference between line 30800 and line 22200. Why are the figures different and shown on different lines? thanks for you contributions.
Line 22200 is a deduction for CPP payable on self-employment earnings. If the client only has employment income there should be nothing on that line.
If the client has $4,267 in CPP withholdings from employment then the credit for the regular CPP contributions will be on line 30800, the deduction for the enhanced CPP (also called CPP2) will be on line 22215, and the client should also be recovering an overpayment of CPP on line 44800 since the amount of withholdings exceeds the maximum CPP + CPP2 contributions for the year.
I recommend you familiarize yourself with how the system works before preparing any more tax returns for paying clients.
“I am a Cameroonian by nationality who has passion for tax accounting. Currently I work remotely as tax accountant for a Canadian based accounting firm called KAACA professionals who’s head office is based in Calgary, Alberta. In my role, I file T2 and T1 returns and also lead the bookkeeping team, by reviewing work done by junior bookkeepers. I am also an ACCA finalist, presently planning to take the UK-Advanced Taxation exam. I also hold an upper second class Bsc(hons) in applied accounting from Oxford Brookes university, UK, and would love to relocate to Canada so I can pursue my masters in international taxation or masters in portfolio management.”
Ah! I see - you were simply re-posting his bio, which is already posted here on ProTaxCommunity. Like @Arliss, I wondered why you posted that, since those posts don’t relate to @vifiehjacobnjong 's question (which is also against the rules of the forum…)
I can see some of you are making mockery of my question which I find absurd. Like I said, I studied UK tax and NOT Canadian taxes. It’s not easy to transition from UK tax to Canadian tax, you will need a lot of research and practice. As of now, I can confidently handle business taxes( T2) and I am working hard to get familiar with personal taxes( T1) which I have gained some experience in. I joined this community to learn from you guys cause I know y’all live in Canada and probably should be experienced more than me in T1 tax filing. Bet, joining this community is a big step for me, and I know you are the right people for me. Thank you all
I can see some of you are making mockery of my question which I find absurd. Like I said, I studied UK tax and NOT Canadian taxes. It’s not easy to transition from UK tax to Canadian tax, you will need a lot of research and practice. As of now, I can confidently handle business taxes( T2) and I am working hard to get familiar with personal taxes( T1) which I have gained some experience in. I joined this community to learn from you guys cause I know y’all live in Canada and probably should be experienced more than me in T1 tax filing. Bet, joining this community is a big step for me, and I know you are the right people for me. Thank you all
Ill be shutting down this thread as its starting to go in a direction as to which this community is not intended to operate as.
I think its a good time to remind everyone that this community is meant to be one to share best practices, ask questions, look for advice, and chat industry trends.
Like any industry forum, there will be a wide range of experience, expertise, and knowledge and we should never discourage people to interacting within this forum.
