Personal Taxprep 2019.1

RC381- Instruction Sheet for the Inter-Provincial Calculation for CPP and QPP Contributions and Overpayments

The Canada Pension Plan (CPP) and the Quebec Pension Plan (QPP) have different contribution rates. As of January 2013, changes were made so that the Canada Revenue Agency (CRA) can calculate your CPP and/or QPP contributions separately using the applicable rate(s). The CRA will use the information you provide on this form to determine the portion of the yearly basic exemption, and the maximum contributory earnings, that will be applied to the CPP and the portion that will be applied to the QPP.

Do you have to complete this form?

You must complete this form and attach it to your return if you are in one of the following situations:

You earned employment income in the province of Quebec in 2018 and you were a resident of a province or territory other than Quebec on December 31, 2018. If this is your case, complete Part 1. If you were at least 65 to 70 years of age, read Part 2. If you were self-employed and/or had other earnings on which you want to elect to pay CPP contributions, also complete Part 3.
You earned employment income in a province or territory other than Quebec in 2018 and you were a resident of Quebec on December 31, 2018. If this is your case, complete Part 1. If you were also self-employed and/or you had income on which you want to make optional contributions, also complete Part 4.

If these situations do not apply to you, complete Schedule 8, Canada Pension Plan Contributions and overpayment for 2018, to calculate any CPP overpayment.

Instructions

Part 1 – CPP/QPP calculation

Boxes A and B

To calculate your contributions, you need to determine the number of months that the rules for the CPP and the QPP apply to you for the year.

Enter 12 in both box A and box B unless the information below applies to you.

Box A:

If you turned 18 years of age in 2018, enter the number of months in the year after the month you turned 18.
If, throughout 2018, you were receiving a CPP or QPP disability pension, enter "0". If you started or stopped receiving a CPP or QPP disability pension in 2018, enter the number of months during which you were not receiving a disability pension.
If you were 65 to 70 years of age in 2018, you were receiving a CPP or QPP retirement pension, and you elected to stop paying CPP contributions in 2018, enter the number of months in the year up to and including the month you made the election. If you had self-employment income in 2018 and have an entry in box 372, enter the number of months in the year prior to the month you entered in box 372.
If you were 65 to 70 years of age in 2018, you were receiving a CPP or QPP retirement pension, you elected to stop paying CPP contributions in a prior year, and you have not revoked that election, enter "0".
If you were 65 to 70 years of age in 2018, you were receiving a CPP or QPP retirement pension, you elected to stop paying CPP contributions in a prior year, and you revoked that election in 2018, enter the number of months in the year after the month you revoked the election. If you had self-employment income in 2018 and have an entry in box 374, enter the number of months in the year after and including the month you entered in box 374.
If you turned 70 years of age in 2018 and you did not elect to stop paying CPP contributions, enter the number of months in the year up to and including the month you turned 70 years of age.
If, throughout 2018, you were 70 years of age or older, enter "0".
If the individual died in 2018, enter the number of months in the year up to and including the month the individual died.

Box B:

If you turned 18 years of age in 2018, enter the number of months in the year after the month you turned 18.
If, throughout 2018, you were receiving a CPP or QPP disability pension, enter "0". If you started or stopped receiving a CPP or QPP disability pension in 2018, enter the number of months during which you were not receiving a disability pension.
If the individual died in 2018, enter the number of months in the year up to and including the month the individual died.

Note the following:

Do not enter a number greater than 12 in box A and box B.
The number of months entered in box A and box B will be the same unless you elected to stop paying CPP contributions, you revoked such an election in the year, or you are 70 years of age or older.
The number of months you enter in box A cannot be more than the number of months you enter in box B.

Examples for determining the entries in box A and box B of Part 1:

Karen turned 18 in February 2018. She will enter "10" in box A and box B (she is subject to the CPP and the QPP from March to December, inclusively).

Marty is 67 years old. In May 2018, he elected to stop contributing to the CPP by completing Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election. He will enter "5" in box A (he is subject to the CPP from January to May, inclusively), and "12" in box B (his election to stop contributing does not apply to the QPP, and he is therefore subject to the QPP for the whole year).

Janet was 68 years old. She elected to stop paying CPP contributions in June 2017 and she did not revoke that election. She passed away in September 2018. The person who files her return will enter "0" in box A (her election to stop paying CPP contributions being valid for the whole year), and "9" in box B (she was subject to the QPP from January to September, inclusively).

Anne turned 70 years of age in April 2018 and she did not elect to stop paying CPP contributions. She will enter "4" in box A (she is subject to the CPP from January to April, inclusively) and "12" in box B (she is subject to the QPP for the whole year).

Arthur is 72 years old. He will enter "0" in box A (he is not subject to the CPP during the whole year) and "12" in box B (he is subject to the QPP for the whole year).

Lines 1 and 2

Use the monthly proration table below to figure out the amount to enter on lines 1 and 2. Use the number of months entered in box A to find the amount to enter on line 1, and use the number of months entered in box B to find the amount to enter on line 2.

Lines 13 and 22

Use the monthly proration table below to figure out the amount to enter on lines 13 and 22. Use the number of months entered in box A to find the amount to enter on line 13, and use the number of months entered in box B to find the amount to enter on line 22.

Part 4 – Residents of Quebec – QPP contributions on self-employment income and other earnings

If you are completing this form, do not complete Schedule 8, Quebec Pension Plan Contributions for 2018.

Applicable number of months	Line 1 and line 2 Maximum CPP/QPP pensionable earnings	Line 13 and line 22 Maximum basic * CPP/QPP exemption
	Monthly proration table for 2018
	Part 1
1	$4,658.33	$291.67
2	$9,316.67	$583.33
3	$13,975.00	$875.00
4	$18,633.33	$1,166.67
5	$23,291.67	$1,458.33
6	$27,950.00	$1,750.00
7	$32,608.33	$2,041.67
8	$37,266.67	$2,333.33
9	$41,925.00	$2,625.00
10	$46,583.33	$2,916.67
11	$51,241.67	$3,208.33
12	$55,900.00	$3,500.00

* If you started receiving CPP retirement benefits in 2018, your basic exemption may be prorated by the CRA.