Employers must file CPP and EI refund applications by December 31.
These applications can be used to claim certain overpaid CPP contributions or EI premiums. Some of these overpaid contributions may be related to amounts, including certain payments and benefits, which are excluded from CPP contributions and EI premiums. If an employer has remitted CPP and EI on such amounts, or on amounts exceeding the maximum insurable earnings or pensionable earnings, the employer may be eligible to claim a refund if a refund application is filed within specific time limits.
As a result, an employer has one last chance to file a refund application by December 31, 2017 for eligible CPP contributions overpaid in 2013. In addition, employers have until December 31, 2017 to file a refund application for EI premiums overpaid in 2014.
In general, overpaid amounts related to the current year will be adjusted on the employers' payroll records. For overpayments related to prior calendar years, a taxpayer can file a refund application to the CRA within the following time frame:
When the employer files a refund application, only the employer portion of the EI premiums or CPP contributions are refunded. In certain circumstances, the employer may have to issue an amended T4 for the applicable taxation years if the employee has also overpaid. Where an amended T4 is issued, the employee will then have to adjust their previously filed tax returns based on the revised T4, which will then trigger a refund of the overpaid EI premiums or CPP contributions.
For more information, contact your KPMG adviser.
Information is current to December 19, 2017. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500