CPT30 Form Flawed - A Potential Costly Issue For Employers
As baby boomers start to collect CPP at 65 but continue to work, employers may run into situations where the employee wants the employer to stop deducting CPP.
It’s important that the employee and employer are aware that normally an employee has to pay CPP until they are 70 UNLESS the employee fills out form CPT30 (providing a copy to the employer and submitting the origonal to the CRA).
The FLAW with the CPT30 form and process is that the employee (not the employer) is the individual required to send the original form to the Winnipeg Tax Centre.
The potential costly outcome for the employer is that IF the employee fails to file the CPT30 with the CRA, the employer may receive a PIER assessment assessing them for BOTH portions of the CPP that should have been deducted.