Govt. Sponsored RIPrograms - CIFP Flashcards
Who is the CL partner of a taxpayer?
The common-law partner of a taxpayer at any time is a person who cohabits with the taxpayer in a conjugal relationship and who has either so cohabited for at least one year, or who is the parent of the taxpayer’s child.
When does the CL relationship terminate?
termination of the common-law relationship if the partners cease cohabitation for a period of at least 90 days because of a breakdown in their conjugal relationship.
What is the definition of a widow under CPP?
A widow includes a widower and means a person whose spouse or common-law partner has died and who has not thereafter become the spouse or common-law partner of another person.
Who are exempt from making CPP contributions?
> Those who do not earn more than the specified ‘exempt amount’ (currently $3,500)
migratory workers who do not work at least 25 days a year, and who do not earn at least $250 a year from the same employer
casual workers, such as baby-sitters
casual employment if it is for a purpose other than your usual trade or business
members of religious orders whose entire earned income is turned over to the order
employment by a government body as an election worker if the worker is not a regular employee of the government body and works for less than 35 hours in a calendar year.
When do CPP contributions commence?
Commences on the later of:
>January 1, 1966 and
his or her 18th birthday
When does the CPP contributory period end?
Ends the earlier of:
> when the individual begins receiving a retirement pension (age 60 being the earliest age)
when the individual reaches age 70
when the individual dies
What are the changes to the CPP contributory period?
> Effective January 1, 2012, working beneficiaries under age 65 are required to continue paying CPP premiums to age 65; similarly, employers of working beneficiaries under age 65 must continue to pay premiums on behalf of the employee to age 65.
These additional contributions will result in an increase in the individual’s retirement pension by way of a post-retirement benefit (even if he or she is already receiving the maximum CPP benefit).
Post-retirement benefits are earned based on a maximum rate of 1/40 of the maximum CPP retirement pension per year of additional contributions.
Between age 65 and age 70, whether CPP premiums continue to be paid is at the discretion of the working beneficiary.
What is the YMPE (Yearly max. pensionable earnings) for 2019?
The YMPE for:
> 2019 is $57,400
> for 2018 it was $55,900
What is the YBE (Yearly basic exemption)?
The basic exemption level below which earnings are not subject to contributions is called the year’s basic exemption or YBE. Since 1998, the YBE has been frozen at $3,500
Formula to calculate Contributory earnings?
[(the LESSER of pensionable employment earnings and the YMPE) - YBE]
What are the Employer and Employee contribution rates for 2019?
The employee and employer contribution rates for 2019 will be 5.1%—up from 4.95% in 2018.
>in 2019, and the self-employed contribution rate will be 10.2%—up from 9.9% in 2018.
Contribution rate formula for self-employed people?
[((the lesser of NET business income and YMPE) – YBE) x contribution rate for self-employed individuals]
What is the max. age you can contribute to CPP?
Age 70
For an individual To be eligible for CPP?
An individual must have:
>made at least one valid contribution to the CPP
>reached the minimum age of 60
>wholly or substantially ceased working, if under 65 years of age
