How do I get back CPP, QPP or EI premiums that I overpaid?
Sometimes, an employee may pay too much Canada Pension Plan (CPP), Québec Pension Plan (QPP), or Employment Insurance (EI) premiums during the year. Usually this is because the employee has changed jobs. When a new job is started, CPP/QPP and EI premiums are calculated without regard to premiums paid at the old job, so it is possible to pay more than the maximum annual amount.
When you file your tax return, you will fill out Schedule 1 for your non-refundable tax credits. On line 308 you will enter the lesser of
- the CPP or QPP premiums you paid during the year, or
- the maximum annual CPP/QPP premiums that should have been paid
On line 310 you will enter the lesser of
- the EI premiums you paid during the year, or
- the maximum annual EI premiums that should have been paid
Unless you are a resident of Québec, any excess CPP premiums that you paid should be entered on line 448 of the tax return. Québec residents will claim any overpayment of QPP on their provincial tax returns.
Any excess EI premiums should be entered on line 450 of the tax return.
There may be a situation where the CPP or QPP and EI premiums have been overpaid, even though the maximum amount of premium for the year was not paid. If you are filing your tax return manually, you will enter on lines 308 and 310 of schedule 1 the actual amounts of CPP or QPP and EI premiums paid. It is not necessary to calculate the overpayment yourself. When Canada Revenue Agency (CRA) receives your tax return, it automatically calculates any overpayment and refunds it to you. If you use tax software to file your return, any overpayment should automatically be calculated, and entered on lines 448 for CPP and 450 for EI.
CRA has a form on which you can calculate your overpayments, if desired. It is form T2204 - Employee overpayments of CPP contributions and EI premiums. This form would be submitted with your tax return.