Employment/payroll Question

[Gentle Ben]

I will call tomorrow for the facts , but I'm curious here.
Here is the situation
I am very likely going to hire (part time) a retired person.
He will be an employee , not a contractor , he will be covered with WSIB .
He is collecting CPP since retired from his previous employer .
Would there still be deductions /employer contributions for his CPP & UIC?

 

[Moraff]

I am not sure of the answer so I do recommend checking with CRA, but if he's collecting CPP I think he has the option of whether he contributes any further to it.

I would imagine that if he elected to pay, you'd be on the hook for your portion.

But these are just guesses on my part.

 

[peteeey]

I believe that, beginning Jan. 1, 2012, you have the option of contributing to CPP if you're between the ages of 65 and 70 and working.

Re, UIC, I know someone over 65 who does seasonal work and collects UIC when laid off, so I assume he would also contribute while working.

 

[Loosely]

Pay him underneath the table and it'll save both the hassles. He needs the extra cash to but smokes anyways.

 

[GPIDEAL]

I'm sure you can google this question and find the answer on the CRA website.

Normally, there's no CPP deductions if under 18 year old or over 65 I think, but I defer to another post that says one has the option over 65 (there are more people workin their 'retirement' years).

 

[Gentle Ben]

Thanks all.
I wont be paying under the table... that opens the doors to situations that I wont gamble with.each of my employees are paid above board,proper deductions and employer remittances, WSIB etc .
I'll call tomorrow to get a definite answer. I just thought there might be an easy /straight forward answer to satisfy my curiosity today.

 

[Ben Hogan]

My best guess: If he provides proof that he is collecting CPP, you don't deduct it. Otherwise, you're obligated as employer. He would be eligible for EI so you would deduct premiums.

 

[oldjones]

I collect. On a recent short term emplyment with a government agency, their printed application stated that if I was collecting CPP and chose not to contribute I must provide proof that I was collecting. I didn't and CPP was deducted. Anyone imagine the government will be refunding the payment?

The employer must deduct, unless they have that proof. It's the employee's option to provide it.

 

[Madeline Rhodes]

I'm sure you can google this question and find the answer on the CRA website.

Normally, there's no CPP deductions if under 18 year old or over 65 I think, but I defer to another post that says one has the option over 65 (there are more people workin their 'retirement' years).

Actually my payroll automatically deducted it and I got it back from the GOV as an over payment. I remember clearly doing the happy dance over it when I was young.

 

[JohnHenry]

The rules are changing after Jan 1. If you are between 60 and 65, and collecting CPP, your employer is obligated to remit their portion. You may remit your portion, and will receive a larger benefit. If you are over 65 and collecting, you may choose to contribute, and if you do, your employer must also.

 

[peteeey]

Correct. And make sure you're not at -- or very near -- the maximum CPP payout. Otherwise, you're just contributing money to the government.

The rules are changing after Jan 1. If you are between 60 and 65, and collecting CPP, your employer is obligated to remit their portion. You may remit your portion, and will receive a larger benefit. If you are over 65 and collecting, you may choose to contribute, and if you do, your employer must also.

 

[Gentle Ben]

yyup. checked with my acct today. the rules are changing. UIC is payable as well.

 

[Adam_hadam]

I will call tomorrow for the facts , but I'm curious here.
Here is the situation
I am very likely going to hire (part time) a retired person.
He will be an employee , not a contractor , he will be covered with WSIB .
He is collecting CPP since retired from his previous employer .
Would there still be deductions /employer contributions for his CPP & UIC?

GB, if your employee is > 65 then you do not deduct CPP. All else is on.

 

[Gentle Ben]

GB, if your employee is > 65 then you do not deduct CPP. All else is on.

not entirely true . prior to JAn 2012 an employee between 60 & 65 that is collecting CPP could opt out at their discretion , by giving notice to the employer.

after Jan 1/2012.
the rules change
If the person is employed , even tho collecting CPP there are normal deductions . Once the employee reaches age 70 they may or may not opt out of CPP deductions . (It's their choice)