Sometimes, you may pay more than the maximum amount of CPP (Canada Pension Plan) or QPP (Quebec Pension Plan) and EI (Employment Insurance) premiums for the year. This can happen when you have changed your job during the year. When you start a new job, CPP / EI premiums are calculated without regarding CPP / EI paid at your previous job, so it is possible to pay more than the CPP and EI maximum for the year. (Check out CPP / EI Maximum for the year.)
Through your CPP or QPP contributions are shown in boxes 16 and 17 of your all T4 slips:
- Enter your CPP maximum (or QPP contributions) for the year on line 308 of Schedule 1 – Federal Tax of your tax return.
- Enter your EI premiums maximum for the year on line 312 of Schedule 1 – Federal Tax of your tax return.
- Enter your CPP overpayment (excess CPP contributions) on line 448 of your tax return.
- Enter your EI overpayment (excess EI contributions) on line 450 of your tax return.
After Canada Revenue Agency (CRA) receives your tax return, it automatically calculates your CPP overpayment / EI overpayment and refunds it to you.