Warmest thoughts and best wishes for a wonderful holiday season ...

Page 7RESTARTING CPP CONTRIBUTIONS – EFFECTIVE 2013At the beginning of 2012, rules changed regarding CPP contributions for employees between theages of 65 and 70 who were already receiving CPP. Employers were required to deduct CPP fromthese employees unless the employee filed an election to stop paying them using form CPT30.Starting in 2013, an employee whohad elected to stop contributing to theCPP in a previous year will be able torevoke that election and restart CPPcontributions. To restart CPP contributions,employees need to completeParts A, B and D of a new form CPT30– Election to Stop Contributing to theCanada Pension Plan, or Revocation ofPrior Election, and provide a copy ofthe completed revocation form to theircurrent employer(s) who will keep acopy in the employee’s file. Employeesmust also keep a copy for their ownrecords. In addition, the employee willhave to send the original completedrevocation form to the CRA using theaddress shown on the back of the form.The employee does not file a new formeach year as the revocation remainsvalid until another election is filed bythe employee.Employees are eligible to revokean election if they: Are employedand receiving pensionable earnings;Have filed an election form (CPT30) tostop contributing to the CPP in a previousyear and now want to revoke it;and Did not make an election or revokea prior election form in the currentcalendar year.When a CPT30 revocation form isconsidered to have been madeand effective: The revocation takeseffect on the first day of the month followingthe month that the employeeprovides a completed and signed FormCPT30 to you and any other employerhe or she has. This date should be thefirst day of the month following themonth the employee entered in Part Dof Form CPT30. However, you willstart deducting CPP contributions accordingto the employee’s pay periodschedule.An employee cannot file a revocationto start contributing to the CPP in thesame calendar year in which he or shemade an election to stop contributingto the CPP. In other words, an employeecannot start and stop paying CPPcontributions during the same calendaryear.STOPPING CPP CONTRIBU-TIONS: If you are turning 65 thisyear, are receiving CPP benefits, andwish to stop paying CPP contributions,you should fill out form CPT30 andsubmit it to payroll and CRA themonth you turn 65.Changes to Medical Services Plan(MSP): As of January 1 2013, unassistedrates will increase by $2.50 amonth for individuals, $4.50 for a familyof two, and $5.00 a month for afamily of three or more. If the MSP ispaid by the employer, then the taxablebenefits will be affected.MONTHLY RATES EFFECTIVE JANUARY 1, 2013Five levels of assistance are available based on adjusted net income for the previous tax yearAdjusted Net Income Subsidy Codes One Person Family of TwoFamily of Three orMore$0 - $22,000 A $0.00 $0.00 $0.00$22,001 - $24,000 B $12.80 $23.20 $25.60$24,001 - $26,000 F $25.60 $46.40 $51.20$26,001 - $28,000 G $38.40 $69.60 $76.80$28,001 - $30,000 E $51.20 $92.80 $102.40Over $30,000 Full Rate (C) $66.50 $120.50 $133.00Anna John - Payroll Manager