September 9, 2015
Employers may have overpaid pension plan payments for seasonal workers
Employers may have overpaid pension plan payments for seasonal workers
Employers deducting CPP premiums according to the tax tables supplied by Canada Revenue Agency (CRA), on behalf of a seasonal worker, or any worker who does not work 52 weeks a year for whatever reason, may be entitled to a refund.
Deduction amounts are based on the assumption that the employee will continue making the same income for all 52 weeks of the year.
When an overpayment occurs with the employee’s contributions, a refund is included on their income tax. This is based on the proper premium calculated on their actual total yearly income.
What happens to the employer’s share? Most small business owners assume that the correct amounts were remitted, as those amounts were supplied by CRA in the first place. They have not been informed differently. The reality is YOU as an employer must request the refund.
CRA does not feel a responsibility to inform employers who have overpaid, even though officials understand employers probably submitted contributions based on 52 weeks a year.
To obtain a refund, employers must fill out a form for each employee Form, available at CPP Deducted.
This issue is among a list of concerns to be raised with Canada Revenue Agency.
Employers deducting CPP premiums according to the tax tables supplied by Canada Revenue Agency (CRA), on behalf of a seasonal worker, or any worker who does not work 52 weeks a year for whatever reason, may be entitled to a refund.
Deduction amounts are based on the assumption that the employee will continue making the same income for all 52 weeks of the year.
When an overpayment occurs with the employee’s contributions, a refund is included on their income tax. This is based on the proper premium calculated on their actual total yearly income.
What happens to the employer’s share? Most small business owners assume that the correct amounts were remitted, as those amounts were supplied by CRA in the first place. They have not been informed differently. The reality is YOU as an employer must request the refund.
CRA does not feel a responsibility to inform employers who have overpaid, even though officials understand employers probably submitted contributions based on 52 weeks a year.
To obtain a refund, employers must fill out a form for each employee Form, available at CPP Deducted.
This issue is among a list of concerns to be raised with Canada Revenue Agency.