Can we accept post-dated CPT30 forms?

If an employee submits a post-dated form, employers should return it to the employee and request she submit it closer to the date it will take effect: Expert
By Annie Chong
|Canadian Payroll Reporter|Last Updated: 12/07/2011

Question: One of our employees wants to stop making Canada Pension Plan (CPP) contributions as of May 2012, the month after she turns 65. She has just given us a completed and signed CPT30 form. She has post-dated it for the end of April 2012. Should we accept it from her this early?

Answer: The Canada Revenue Agency (CRA) advises employers not to accept post-dated CPT30 forms from employees.
If an employee submits a post-dated form, employers should return the form to the employee and request  she submit it closer to the date  it will take effect. In some situations, it is advisable to accept the forms in advance.

This would apply, for example, if the payroll department needs the form in advance in order to meet payroll cut-off dates or system input deadlines.

The CPT30 form is to be used by employees aged 65 to 69 years who want to opt out of CPP contributions (or opt back in after electing not to contribute).

Beginning Jan. 1, 2012, new rules will apply for CPP contributions for employees who are aged 60 to 69 years who are receiving a C/QPP retirement pension while working in pensionable employment.

The new rules will mean that:  
•employees aged 60 to 65 will have to make CPP contributions
•employees aged 65 to 69 will have to contribute to the CPP unless they complete and submit form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election, electing not to contribute
•employees aged 65 to 69 who elect not to contribute will be allowed to revoke that decision and contribute to the CPP in a subsequent year and employers will have to pay the employer share of CPP contributions for these employees.

Responsibility for sending CPT30 to CRA

Question: Who is responsible for sending the CPT30 form to the CRA, the employer or the employee?

Answer: It is up to employees to complete and sign the form and send the original to the CRA. Employees must also make a copy of the form and give it to their employer (this would also include their future employers). Employers must keep the form on file. It is also advisable that employees keep a copy of the completed and signed form in their records.

Annie Chong is manager of the payroll consulting group at Carswell, a Thomson Reuters business, which  publishes the Canadian Payroll Manual and operates the Carswell Payroll Hotline. She can be reached at annie.chong@thomsonreuters.com or (416) 298-5085.