Looking for some help... How do you pay CPP?
I've googled and googled and couldn't find anything, and calling the toll-free line was zero help (and made me want to rip my own eyeballs out).
Can anyone point me in the right direction?
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Looking for some help... How do you pay CPP?
I've googled and googled and couldn't find anything, and calling the toll-free line was zero help (and made me want to rip my own eyeballs out).
Can anyone point me in the right direction?
your accountant will figure out how much you owe for cpp (and EI if you pay into it) when you do your taxes. it is all included with your payment when you pay your taxes.
Thanks Mickyc!
I asked my accountant for it and she didn't seem to have any idea. Hmmm...
Really?! that is weird. my accountant figures out the CPP and EI payments for me (except for the first year I collected EI and that is just because I forgot to tell him I signed up for it). That would make me nervous going to an accountant who doesn't know how to calculate the CPP, what else do they not know about? Just my opinion.
I imagine once you send your income tax in CRA will calculate it for you and then you will get it when you get your Assessment.
I'm a bit sketched out by it too... Not the first time I've felt like that with her either. I may be looking for a second opinion.
Thanks again!
That would be a big red flag for me if I was you. I would maybe find someone new!
Ok , she got back to me. Does this sound right?
My taxable income was actually only $4000 something and 2400 of that was UCCB (which doesn't count as earned income) and CPP doesn't kick in until $3400, so I don't contribute.
I know I had a lot of deductions and didn't make as much as possible (only March-December, had several spots open in the summer) but it seems a bit suspect to me.
Sorry I have no idea! lol
After all my deductions I ended up with approx. $14,000 of taxable income. On that I paid approx. $1200 for CPP and $250 for EI and another $200 in tax (I think - sorry not 100% on my numbers).
How come you only had $4,000 in taxable income from March-December? That seems low. Do you have a bunch of deductions to transfer to your second year? I had over $10,000 in deductions for my 2nd year.
If you don't feel comfortable with your accountant find someone who you have faith in. I don't mind paying good money for my taxes to be done. I know you can find places that are cheaper but cheaper isn't always best. I want someone who knows what they are doing and do it right!!
My numbers are similar to Mickyc's. I had $16 000 as taxable income and I paid $1250 for CPP, $300 for EI and $800 for taxes for a grand total owing of $2350.
I agree with her, if you don't feel comfortable with your accountant, find a 2nd or 3rd opinion. I ended up going a different route after a big name company messed up my taxes. I was able to find an amazing lady who has retired from accounting and now does it out of her home for a fraction of the cost. She is very full and doesn't take any new clients so I am very thankful I was able to get in to her as she only does her select clientele now. My sister and brother in law were able to squeeze in just before she stopped taking clients last year. They used to do their own but said for the fee she charges they are going to stick with her as she is bang on but it's less stress for them. I really hope she does this for a few more years!!
I don't know much about taxes and such but your numbers seem really low to me unless you had huge deductions last year. If this is something that you are going to want to do long term, I would suggest finding someone you are comfortable with to do your taxes every year. I am able to email my accountant all year long to ask questions and she emails me and lets me know things I should be doing to save me money and things like that. It's worth the time to find someone who knows their stuff.
Yeah I'm pretty sure that when I did my deductions, it was a lot more as well. Not that I'm an accountant but it seemed really low to me. Especially since she sent me an example of someone's day home claim she'd find previously and her numbers were quite a bit higher than mine.
I think I'm going to need a second opinion.
Update:
We got together to finalize paperwork (I was skeptical, but tired of emailing... I wanted to just look over it all myself) and I went over the actual claim forms she did...
Could not have done a worse job... Here are the highlights:
Claimed 70% of my expenses for business use of home... Apparently she hadn't looked at my notes, or anything from the CRA to figure this out.
Claimed everything from my toys, books, crafts total (should have been 50%)
Claimed things we'd discussed and decided not to claim (cat vaccines - required by my agency, but seemed shifty) and claimed the cost of our deck repairs twice - both because she was too lazy to look through my notes, just happy to plunk in the numbers without thinking.
So frustrating! I've emailed her back telling her to fix it and giving her the right numbers. Also, did I mention that she's an accountant? Also that I'm not one?
And to top it off, still no news on CPP, I forgot to mention it in my email. :(
On the search for a new accountant.
Yikes !!! That makes me nervous !! My first accountant was very vague and after I pushed for more info let me know I was her first dayhome , um no thanks !!! So I moved on !!
This girl has done day homes before , and told me she thought that claiming 70% for use of home seemed low!!!
At least it's not my taxes she's been doing wrong for years. I feel bad for the ones that she has, though!
2cuteboys....the accountant that I had do my first year of daycare taxes was an accountant from a big name company AND had a licensed home daycare....and she still did my taxes wrong! lol
Good luck on your accountant search! You will feel so much better when you find someone you like and trust!
Oh brother!!
I use BDO and I think they have offices in Alberta. See if you can find one close to you. I have had nothing but excellent advice and work through my accountant.
Thanks for all the help ladies.
So I basically paid my accountant to figure out how to do it myself, but at least I know it's done properly!
I end up owing $2000 and my husbands return dropped by $2000 as well (as she'd had my income well below the maximum a dependent can make). So a $4000 dollar difference.
Lesson learned! Finding a new accountant for next year!
I'm glad you got things figured out....your more patient than me. I wouldn't have paid the accountant....I don't know what it's like in Alberta but in Ontario it's already past the deadline for taxes owing so Id of just got my things and taken them somewhere else. I'm still not sure id have faith in what she filed but hopefully all is well.Quote:
Originally Posted by 2cuteboys
Taxes aren't due in Ontario till April 30 in fact due to the problems you have until May 5 this year to file.
I believe it's April 30th (or May 5) for us as well.
I do have faith in it now as i corrected the numbers myself. I hadn't planned on learning all of this, but I'm glad I did. I am more confident now in dealing with my taxes and have a better grasp of how to separate my deductions as well. It's always good to know how these sorts of things work I suppose.