Are you aware of the changes to the Canada Pension Plan (CPP) rules that started at the beginning of 2012? If you are working, and are between the ages of 60 and 70, they affect you.
Under the old rules, if you had started to collect CPP, you couldn’t pay into it anymore, even if you were under age 65, and you could not pay into it at all once you turned 65. Under the new rules, if you are under 65 and collecting CPP, but still working, you MUST continue to pay CPP each year, even if you are already collecting it. If you are over 65 and under 70, and are still working, you can choose to pay or not. If you don’t want to pay, you must file form CPT30 with both the government and your employer in the month before you wish to stop contributing.
There are benefits to continuing to pay into CPP because the additional payments will result in a bigger pension than you would have otherwise received. The benefits and costs will vary from person to person and will be different for self-employed individuals than for those employed by others. We can help you decide what’s best for you. Contact us today.
If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.
Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.
The federal government has imposed new reporting rules for Bare Trusts. Here’s everything that you need to know.
New Transparency Requirements for B.C. Corporations August 17, 2020 The B.C. Provincial Government has amended the Business Corporations Act in an effort to end hidden
Revenue Recognition August 20, 2015 When accounting for revenue, there are few areas of the CPA Canada Handbook one might need to look at depending
CPA, CGA, CMA, CA…what does it all mean? August 11, 2015 Canada’s accounting profession is now represented by a single national body – Chartered Professional