nldfc

This may be a dumb question and apologies if it is I havent done a whole lot of job hopping
If you work for 2 different companies during the year and max out CPP and EI with both companies does this get sorted out with your tax filing or is their a alternative route to go down to get back the overpayments ?

PMM

Hi


If you paid over the maximum you get a refund (credit) when you file your taxes.

Atlantic Xpat

What PMM says. Same thing happened for me in 2010. Overpaid CPP and EI and got it all back at tax time.

nldfc

Thanks guys - Thats what I thought but wasnt sure enough to gamble almost 3k on it

delsol79

So is CPP and EI not centrally tracked? What I mean is say I hit my max with my current company and then move to a new company. Does the new company know not to charge further CPP/EI or do they start again treating you as if you have paid none that year?

Thanks!

Aviator

They would have no idea, payroll is taken off of CRA tables and deductions based on the credits claimed on the meployees TD1 and TD! provincial. It is not linked to any central database. Payroll tables are issued twice a year, Jan 1 and July 1 and the employer is an unpaid tax collector, in fact they have to pay to collect the taxes.

delsol79

So if I moved company in June of this year I would be fine as in July the new company would get an updated payroll table and see I had paid my max contributions and stop charging me?

Cheers.

JonboyE

No. The new employer has no idea what CPP and EI you paid in your previous employment. Even if you tell them they are required by law to deduct CPP and EI according to the tables. You get any overpayment back when you file your tax returns.

Novocastrian

Nope. They'd start charging you again from zero as if you hadn't yet worked that year.

But at least it would get sorted at tax time.

nldfc

Works out as a handy little non interest gaining savings account that you have no choice but to pay into

JonboyE

And a nice little earner for the government. They refund the excess contributions individuals make, but not the contributions both employers make.

nldfc

I didnt realise that - Free money for the government then .

Do most companies try and take out the CPP and EI as quickly as possible or do they usually space it out over the year ? My last lot used to try and max them both out in the 1st 6 months

Novocastrian

Nor did I. That's not kosher.