Who Can Elect to Pay CPP?
Individuals Over 65 but Under 70: You can elect to stop paying CPP contributions once you reach 65 if you are still employed
Self-Employed Individuals: You can choose to pay CPP contributions if they are not already mandatory or elect to stop contributing under specific circumstances
Low-Income Earners: If your income is below the Year’s Basic Exemption (YBE), you can elect to start or stop contributing based on your preference
Why Elect to Pay CPP?
Build CPP Benefits: Contributions increase your CPP retirement pension, disability benefits, and survivor benefits.
Ensure Consistency: Contributions during low-income periods or exempt employment fill potential gaps in your CPP record.
Future Security: Boost your overall CPP entitlement for retirement or unforeseen circumstances.
How to Elect to Pay CPP
Indicate on Your Tax Return: Declare your election to pay CPP contributions when filing.
Use Form CPT20: Complete the CPT20 Election to Pay CPP Contributions form and submit it to the CRA if required.
Contribution Calculation: Contributions will be calculated based on your income, ensuring compliance with CRA requirements.
How to Stop Paying CPP Contributions
Complete Form CPT30:
File the CPT30 Election to Stop Contributing to the Canada Pension Plan form.
Submit a copy to your employer to notify them of your decision.
Declare Your Election on Your Tax Return: Ensure you indicate this change when filing your taxes.
Eligibility: You must be at least 65 and under 70 to stop paying CPP contributions.
Important Notes
You can only elect to pay CPP contributions on eligible income
Contributions include both the employee and employer portions if you are self-employed
Once elected, contributions are mandatory for the tax year and cannot be reversed
Why This Matters
Electing to pay CPP contributions helps you maximize your benefits and secure your financial future. It’s a proactive step to ensure you’re prepared for retirement, disability, or survivor benefits.