--- oa_review_kit: v1 guide_slug: ca-fed-cpp-ei guide_version: ca-fed-cpp-ei@2026-05-23T15:33:34.129Z archetype: payroll --- # Review kit: CA Fed CPP EI Thank you for reviewing this Guide. This kit is one file with three parts: how to use it, an interview prompt for your AI, and the Guide itself. ## How to use this kit (3 steps, about 15 minutes) 1. Open the AI you already use (ChatGPT, Claude, Gemini, anything that reads markdown) and paste in everything from "INTERVIEW PROMPT" below, including the Guide at the end. 2. Your AI interviews you like a colleague, one question at a time. Just talk: war stories, walk-throughs, the mistakes you catch. No writing required. 3. Your AI writes your answers up as a single markdown file. Hand it back at openaccountants.com/skills/ca-fed-cpp-ei/handback (also linked from the Guide page: "Hand back your file"). What you added is published under your name and credential. If your AI cannot produce the exact output format, hand back whatever you have: a revised Guide file, a worksheet, or plain notes. We take those too, and a person reviews them by hand. The format below is the one we can apply straight away. --- # INTERVIEW PROMPT (paste from here down into your AI) You are interviewing a practising accountant about how they actually do the work covered by the attached Guide ("CA Fed CPP EI", slug `ca-fed-cpp-ei`). Interview them like a colleague doing a handover. Do not lecture. Ask ONE question at a time and wait for the answer. Chase war stories and specifics: what kind of client, which portal step, how big the penalty was. The rates, thresholds, and citations are our job; we refresh those from primary sources. Capture ONLY what is NOT derivable from law: - order of operations, and what a wrong order corrupts - what to ask a client before computing anything - what to assume when a fact is unknown, and how it gets flagged - the most-missed traps, with penalty size and who falls in - how the portal or filing channel actually behaves - what has to reconcile before anyone signs - when to refuse the work and hand it to a human specialist If the accountant corrects a rate, threshold, or deadline in the Guide along the way, record it in the FACT CORRECTIONS table, but do not steer the interview toward numbers. ## Questions to work through Ask these in order, one at a time. Skip any the accountant has already covered; follow up where a story has specifics worth pinning down. Each question is tagged with the method slot(s) it feeds. 1. [intake_questions] [conservative_default] Walk me through onboarding a new employee into payroll. What do you collect, and what's your default when the paperwork is missing? 2. [trap] What's the most common way a new starter's withholding gets set wrong? 3. [edge_case] What's different about directors or owners on payroll that a generic guide never says? 4. [filing_mechanics] What has to happen on or before payday, and what happens if it's late even when the money was right? 5. [trap] Which employer allowances or reliefs are claimed wrongly, or missed entirely? What's the eligibility gotcha? 6. [judgment_rule] How do you set base salary vs allowances so the statutory contributions come out right? 7. [edge_case] What does a mid-year change (a raise crossing a ceiling, an employee crossing an age threshold) do to contributions, and where do people get it wrong? 8. [cross_check] What do you reconcile every month, and again at year-end? What must tie to what? 9. [edge_case] Which regional or state variations bite multi-location employers? 10. [filing_mechanics] Walk me through your deposit calendar. Which payment deadlines differ from filing deadlines? 11. [scope_gate] Ever refused or unwound a payroll client? What made it untouchable? 12. [trap] Tell me the late-deposit war story you use to scare clients, with the real interest and damages. ## Method slots (for tagging the write-up) - `scope_gate` (Scope gate and refusals): when to stop and send the client to a human - `sequence` (Order of operations): what order to do things in, and what a wrong order corrupts - `intake_questions` (Client intake questions): what to ask a client before computing - `evidence` (Documents and evidence): which documents to insist on, and what is draft-grade vs file-grade - `judgment_rule` (Judgment rules): how a practitioner actually picks when the law allows two routes - `conservative_default` (Conservative defaults): what to assume when a fact is unknowable at draft time - `trap` (Traps and most-missed items): the mistakes everyone makes, what they cost, and who falls in - `filing_mechanics` (Portal and filing mechanics): how submission actually works: channel, order, what locks - `cross_check` (Cross-checks before signing): what has to reconcile with what before delivery, and how close is close enough - `pattern_library` (Pattern library): how messy real-world data (bank lines, payout platforms) maps to tax categories - `edge_case` (Edge-case playbook): the client situations that change the method, not just the numbers - `unsettled_law` (Unsettled-law flags): what not to finalise right now, and why - `handback_protocol` (Hand-back protocol): what the finished working paper contains and who reviews it ## Output format: oa-handback v1 When the interview is done, write the answers up as ONE markdown file in exactly this shape. Fill in the reviewer's real name, credential, and email (ask for them at the end if they have not come up). Every method block gets a `### [method:]` heading where `` is one of the 13 slot ids above. Keep `guide_slug` and `guide_version` exactly as given. Omit any section the interview produced nothing for, but keep the headings that remain exactly as shown. The `fact_key` column may be left blank when unknown. ```markdown --- oa_handback: v1 guide_slug: ca-fed-cpp-ei guide_version: ca-fed-cpp-ei@2026-05-23T15:33:34.129Z reviewer_name: reviewer_credential: # free text: CPA, EA, ACCA, Steuerberater... reviewer_email: verdict: --- ## METHOD ### [method:filing_mechanics] ### [method:intake_questions] - - ... ## FACT CORRECTIONS | fact_key | current | correct | source | |---|---|---|---| | | | | | ## FLAGS - [unsettled] - [refer] ## NOTES ``` If for any reason you cannot produce this exact format, output the accountant's corrections and methods as clear plain notes instead. The hand-back page accepts plain notes and revised Guide files too; this format is an optimization, never a gate. --- # THE GUIDE UNDER REVIEW --- name: ca-fed-cpp-ei description: Use this skill whenever asked about Canada Pension Plan (CPP) or Employment Insurance (EI) contributions for self-employed individuals. Trigger on phrases like "CPP self-employed", "Schedule 8", "CPP2", "YAMPE", "EI opt-in self-employed", "how much CPP do I pay", "self-employed EI benefits", "CPP contribution calculation", or any question about CPP/EI obligations for a self-employed sole proprietor or single-member entity in Canada. This skill covers CPP1 rates, CPP2 second ceiling, Schedule 8 computation, EI voluntary opt-in, tax treatment (line 22200 deduction and non-refundable credit), age exemptions, overpayment recovery, and edge cases. ALWAYS read this skill before touching any CPP/EI-related work. jurisdiction: CA domain: payroll tax_year: 2025 --- # ca-fed-cpp-ei ## Canada CPP/EI Self-Employed Skill v2.0 ## Verified rates & thresholds (accountant-reviewed) Reviewed against the cited tax authorities by **Nathan Wiebe** on 2026-06-21. Items flagged for further clarification are tracked separately and excluded here. This block is generated from verified `skill_facts` — edit the facts, not the prose. ### CPP-CPP2-EI - **YMPE** — $71,300.00 _(CRA — CPP contribution rates — canada.ca)_ - **Basic exemption** — $3,500.00 _(Canada Pension Plan Act s.20)_ - **Maximum contributory earnings (YMPE - exemption)** — $67,800.00 - **Employee rate** — 5.95% - **Self-employed rate** — 11.90% _(Canada Pension Plan Act s.10; CRA — Schedule 8)_ - **Max CPP contribution** — $8,068.20 - **YAMPE** — $81,200.00 _(CRA — CPP contribution rates — canada.ca)_ - **CPP2 contributory range** — $71,300–$81,200 ($9,900) _(CPP Act (as amended, Bill C-97 2024); CRA)_ - **Employee CPP2 rate** — 4.00% - **Self-employed CPP2 rate (2x employee)** — 8.00% - **Max QPP2 contribution** — $792.00 - **Max insurable earnings (MIE)** — $65,700.00 _(CRA — EI premium rates — canada.ca)_ - **SE premium rate** — $1.64 per $100 _(CRA — EI premium rates — canada.ca)_ - **Max EI premium** — $1,077.48 _(CRA — EI premium rates and maximums — canada.ca)_ - **Age 18–69, earnings > $3,500** — MUST contribute CPP _(Canada Pension Plan Act s.10, s.12)_ - **Age 70+** — EXEMPT from CPP _(Canada Pension Plan Act s.12(1)(c))_ - **Receiving CPP disability pension** — EXEMPT from CPP _(Canada Pension Plan Act s.12(1)(b))_ - **CPP retirement, age 60-64** — MUST contribute (since 2012) _(Canada Pension Plan Act s.12; CRA Schedule 8 notes)_ - **CPP retirement, age 65-69** — MAY elect to stop (Form CPT30) _(Canada Pension Plan Act s.12(1)(d); Form CPT30)_ - **Line 7** — CPP on SE = (min(earnings, YMPE) − $3,500) × 11.9% − T4 CPP _(CRA — Schedule 8 instructions — canada.ca)_ - **Deduction** — 50% on line 22200 _(ITA s.60(e))_ ## Section 1 -- Quick reference **Quick reference table** | Field | Value | | --- | --- | | Country | Canada (Federal) | | Jurisdiction Code | CA-FED | | Primary Legislation | Canada Pension Plan Act (R.S.C., 1985, c. C-8); Employment Insurance Act (S.C. 1996, c. 23) | | Supporting Legislation | Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.)) -- line 22200 deduction, Schedule 8, non-refundable credits | | Tax Authority | Canada Revenue Agency (CRA) | | Tax Year | 2025 | | Currency | CAD only | | Filing Deadline | June 15 (self-employed), but PAYMENT due April 30 | | Contributor | Open Accountants community | | Validated By | Verified by Nathan Wiebe on 2026-06-21 | | Validation Date | Verified by Nathan Wiebe on 2026-06-21 | | Skill Version | 2.0 | | Confidence Coverage | Tier 1: CPP/CPP2 rate calculation, Schedule 8 mechanics, EI opt-in rules, tax treatment. Tier 2: mid-year status changes, partial-year contributions, Quebec QPP interactions. Tier 3: disability pension interactions, international social security agreements. | Read this whole section before computing anything. **CPP1 thresholds (2025)** | Item | Amount | | --- | --- | | Year's Maximum Pensionable Earnings (YMPE) | $71,300.00 | | Year's Basic Exemption | $3,500.00 | | Maximum contributory earnings (YMPE - exemption) | $67,800.00 | | Employee rate | 5.95% | | Self-employed rate (2x employee) | 11.90% | | Maximum self-employed CPP1 contribution | $8,068.20 | **CPP2 thresholds (2025)** | Item | Amount | | --- | --- | | Year's Additional Maximum Pensionable Earnings (YAMPE) | $81,200.00 | | Maximum additional contributory earnings (YAMPE - YMPE) | $9,900.00 | | Employee CPP2 rate | 4.00% | | Self-employed CPP2 rate (2x employee) | 8.00% | | Maximum self-employed CPP2 contribution | $792.00 | **EI thresholds (2025, outside Quebec)** | Item | Amount | | --- | --- | | Maximum insurable earnings (MIE) | $65,700.00 | | Self-employed premium rate | $1.64 per $100 (employee rate only, no employer portion) | | Maximum annual premium (self-employed) | $1,077.48 | **Conservative defaults** | Ambiguity | Default | | --- | --- | | Unknown province | Ontario (non-Quebec, CPP applies) | | Unknown CPP pension status | Not receiving pension (contributions required) | | Unknown EI opt-in status | Not opted in (no EI premiums) | | Unknown T4 CPP already paid | $0 (full self-employed contribution required) | ### Required inputs Before computing any CPP or EI figure, you MUST know: 1. Date of birth -- determines whether CPP contributions are required (age 18-70 range) 2. Province of residence -- Quebec residents use QPP, not CPP (this skill does NOT cover QPP) 3. Net self-employment income for the tax year -- CPP is based on current year, not prior year 4. Is the client also employed (T4 income)? -- employee CPP already paid reduces self-employed obligation 5. Has the client opted in to EI? -- EI is voluntary for self-employed 6. Is the client receiving a CPP disability or retirement pension? -- may affect contribution obligations 7. Did the client turn 18 or 70 during the tax year? -- pro-rata calculation required If province is Quebec, STOP. This skill covers CPP only. QPP has different rates and thresholds. ### Refusal catalogue - **R-CA-CPP-1 -- Quebec resident** — Trigger: client resides in Quebec. Message: "Quebec Pension Plan (QPP) applies instead of CPP. QPP has different rates (6.40% employee / 12.80% self-employed for 2025). This skill does NOT cover QPP. Please escalate to a practitioner with QPP expertise." - **R-CA-CPP-2 -- Disability pension interaction** — Trigger: client receives a CPP disability pension and asks about contribution obligations or benefit impacts. Message: "CPP disability pension interactions with self-employment contributions are complex and outside this skill's scope. Please escalate to a licensed Canadian CPA." - **R-CA-CPP-3 -- International social security agreement** — Trigger: client asks about CPP credits under a bilateral social security agreement. Message: "International social security agreements require case-specific analysis. Please escalate to a licensed Canadian CPA familiar with treaty provisions." ## Section 3 -- Payment pattern library This is the deterministic pre-classifier for bank statement entries related to CPP and EI. Match by case-insensitive substring on the counterparty name or transaction description. ### 3.1 CRA payments (CPP/EI embedded in T1 balance owing) **CRA payment patterns** | Pattern | Treatment | Notes | | --- | --- | --- | | CRA, CANADA REVENUE AGENCY | T1 PAYMENT COMPONENT | Self-employed CPP/EI are not paid separately; rolled into T1 balance owing (line 42100) | | RECEIVER GENERAL, REC GEN CANADA | T1 PAYMENT COMPONENT | Same as CRA -- instalment or balance owing payment | | CRA INSTALMENT, QUARTERLY INSTALMENT | INSTALMENT PAYMENT | If net tax owing exceeds $3,000 in current AND prior years, quarterly instalments required (March 15, June 15, September 15, December 15) | | CRA REFUND, TAX REFUND CRA | T1 REFUND | May include CPP overpayment refund (line 44800) | ### 3.2 EI-related payments (if opted in) **EI payment patterns** | Pattern | Treatment | Notes | | --- | --- | --- | | SERVICE CANADA, ESDC | EI BENEFIT or REGISTRATION | Employment Insurance benefit payment or opt-in registration | | EI MATERNITY, EI PARENTAL, EI SICKNESS | EI BENEFIT RECEIPT | Special benefits available to opted-in self-employed | ### 3.3 Provincial pension (Quebec -- refusal trigger) **Quebec pension patterns** | Pattern | Treatment | Notes | | --- | --- | --- | | RRQ, RETRAITE QUEBEC, QPP | REFUSAL TRIGGER | Quebec Pension Plan -- fire R-CA-CPP-1 | ## Section 4 -- CPP eligibility and computation rules ### 4.1 CPP eligibility (Tier 1) **CPP eligibility table** _(Canada Pension Plan Act, s. 10)_ | Condition | CPP Obligation | | --- | --- | | Age 18 to 69 (inclusive) with net self-employment earnings > $3,500 | MUST contribute | | Age 70 or older | EXEMPT -- no CPP contributions required | | Under age 18 | EXEMPT -- no CPP contributions required | | Receiving CPP retirement pension and age 60-64 | MUST contribute (mandatory since 2012) | | Receiving CPP retirement pension and age 65-69 | MAY elect to stop contributing (file Form CPT30) | | Receiving CPP disability pension | EXEMPT -- do not contribute | | Net self-employment earnings <= $3,500 (basic exemption) | No CPP payable (earnings below floor) | ### 4.2 CPP1 computation (Tier 1) - **CPP1 computation formula** — pensionable_earnings = min(net_self_employment_income, $71,300) - $3,500 pensionable_earnings = max(pensionable_earnings, 0) cpp1 = pensionable_earnings x 11.90% cpp1 = min(cpp1, $8,068.20) ### 4.3 CPP2 computation (Tier 1) - **CPP2 computation formula** — cpp2_earnings = min(net_self_employment_income, $81,200) - $71,300 cpp2_earnings = max(cpp2_earnings, 0) cpp2 = cpp2_earnings x 8.00% cpp2 = min(cpp2, $792.00) _(Canada Pension Plan Act (as amended by Bill C-97, 2024))_ ### 4.4 Schedule 8 computation (Tier 1) **Schedule 8 computation table** | Line | Description | Computation | | --- | --- | --- | | Line 1 | Total CPP pensionable employment income (from T4 slips) | Sum of Box 26 from all T4s | | Line 2 | CPP contributions deducted (from T4 slips) | Sum of Box 16 from all T4s | | Line 3 | Net self-employment earnings | From line 12200 of T1 | | Line 4 | Total pensionable earnings | Line 1 + Line 3 | | Line 5 | Basic exemption | $3,500 (or pro-rated if partial year) | | Line 6 | Maximum contributory earnings | min(Line 4, YMPE) - Line 5 | | Line 7 | CPP contributions on self-employment | (Line 6 x 11.90%) - Line 2 | | Line 8 | CPP2 additional contributions | Per Step 4.3 above | | Line 9 | Total contributions payable | Line 7 + Line 8 | - **Key rule** — If the client also has T4 employment income with CPP already deducted, the employee CPP contributions (Line 2) are subtracted from the total obligation. If T4 CPP contributions already cover the maximum, self-employed CPP = $0. ### 4.5 Tax treatment of self-employed CPP (Tier 1) - **CPP1 split** — Employer-equivalent half (50%) is a deduction from net income (line 22200). Employee-equivalent half (50%) is a non-refundable tax credit (line 30800, 15% federal credit). _(Income Tax Act, s. 60(e), s. 118.7)_ - **CPP2 split** — Employer-equivalent half (50%) is a deduction from net income (line 22215). Employee-equivalent half (50%) is a non-refundable tax credit (line 30800, 15% federal credit). _(Income Tax Act, s. 60(e), s. 118.7)_ The deduction is more valuable at higher marginal rates. The credit is worth a flat 15% regardless of income. ### 4.6 EI for self-employed (Tier 1) - **EI voluntary opt-in rules** — EI is voluntary for self-employed. To opt in, register with Service Canada. 12-month waiting period before claiming benefits. Once benefits are claimed, cannot opt out. Self-employed EI covers SPECIAL BENEFITS ONLY (maternity, parental, sickness, compassionate care, family caregiver). It does NOT cover regular unemployment benefits. _(Employment Insurance Act, Part VII.1, s. 152.07-152.21)_ - **EI premium formula** — ei_premium = min(net_self_employment_income, $65,700) x 1.64% ei_premium = min(ei_premium, $1,077.48) - **EI premium credit** — EI premiums are claimed as a non-refundable tax credit on line 31200 (15% federal credit). ## Section 5 -- Age exemptions and pro-rata rules **Age exemptions and pro-rata table** _(Canada Pension Plan Act, s. 12, s. 13)_ | Age Event | CPP Treatment | EI Treatment | | --- | --- | --- | | Turn 18 during the year | Contribute from month after 18th birthday | No age restriction | | Age 18-69 all year | Full year contributions | Full year EI (if opted in) | | Turn 70 during the year | Contribute up to and including month of 70th birthday | No age restriction | | Age 70+ at start of year | NO CPP contributions | EI still available (if opted in) | | Under 18 all year | NO CPP contributions | No age restriction | - **Pro-rata basic exemption formula** — pro_rata_exemption = ($3,500 / 12) x number_of_contributory_months _(Canada Pension Plan Act, s. 12, s. 13)_ ### 6.1 Overpayment recovery (Tier 1) **Overpayment recovery table** _(Income Tax Act, s. 118.7)_ | Overpayment Type | How Recovered | | --- | --- | | CPP overpayment (employee contributions from T4s exceed maximum) | Claimed on line 44800 of T1 as refundable credit | | CPP2 overpayment | Claimed on line 44801 of T1 as refundable credit | | EI overpayment (multiple T4s) | Claimed on line 45000 of T1 as refundable credit | ### 6.2 Payment and filing (Tier 1) **Payment and filing table** | Requirement | Detail | | --- | --- | | How CPP is paid | Added to balance owing on T1 return (line 42100) | | Filing deadline | June 15 (self-employed), but PAYMENT due April 30 | | Instalment requirements | If net tax owing exceeds $3,000 ($1,800 in Quebec) in current year AND either of the two prior years | | Instalment dates | March 15, June 15, September 15, December 15 | | Interest on late payment | Prescribed rate set quarterly by CRA, compounded daily | CPP and EI are NOT paid separately by self-employed individuals. They are calculated on Schedule 8 and rolled into the T1 balance owing. ### EC1 -- Client turns 70 mid-year (Tier 1) Situation: Client's 70th birthday is in July 2025. Resolution: CPP contributions required January through July (7 months). Pro-rate the basic exemption: ($3,500 / 12) x 7 = $2,041.67. Schedule 8 handles the pro-rata calculation. ### EC2 -- Client receiving CPP retirement pension, age 65-69 (Tier 2) Situation: Client started CPP retirement pension at 65 and continues to be self-employed. Resolution: Contributions are optional for ages 65-69 if receiving CPP retirement. Client must file Form CPT30 to elect to stop contributing. If no CPT30 filed, contributions are required. Flag for reviewer -- confirm pension status and whether CPT30 has been filed. ### EC3 -- Quebec resident (Tier 3) Situation: Client resides in Quebec. Resolution: QPP applies instead of CPP. QPP has different rates (6.40% employee / 12.80% self-employed for 2025). This skill does NOT cover QPP. Escalate to practitioner with QPP expertise. ### EC4 -- Self-employed EI opt-in within first 12 months (Tier 1) Situation: Client opted in to EI in August 2025, wants to claim maternity benefits in January 2026. Resolution: 12-month waiting period applies. Client cannot claim benefits until August 2026. Premiums are still due for August-December 2025. ### EC5 -- Net self-employment loss (Tier 1) Situation: Client has a net self-employment loss (negative income). Resolution: No CPP contributions are payable on a loss. Pensionable earnings = $0. Unlike Malta SSC, there is NO minimum CPP contribution. ### EC6 -- Religious exemption (Tier 2) Situation: Client is a member of a religious group that has an approved exemption from CPP. Resolution: Form CPT17 must have been filed and approved. Flag for reviewer -- confirm exemption status with CRA before excluding CPP. ### EC7 -- Non-resident self-employed in Canada (Tier 2) Situation: Client is a non-resident of Canada earning self-employment income from Canadian sources. Resolution: CPP may still apply if the work is performed in Canada, regardless of residence. Flag for reviewer -- confirm whether the Canada-source self-employment triggers CPP obligations. ### EC8 -- EI opt-out after opting in but before claiming (Tier 1) Situation: Client opted in to EI for self-employed in 2024, has not claimed benefits, wants to opt out. Resolution: Client may opt out by December 31 of the current year if NO benefits have been claimed. Premiums paid for the opt-in year are refundable. Once any benefit has been claimed, the client cannot opt out. ## Section 8 -- Reviewer escalation protocol When a Tier 2 situation is identified: ``` REVIEWER FLAG Tier: T2 Client: [name] Situation: [description] Issue: [what is ambiguous] Options: [possible treatments] Recommended: [most likely correct treatment and why] Action Required: Licensed Canadian CPA must confirm before advising client. ``` When a Tier 3 situation is identified: ``` ESCALATION REQUIRED Tier: T3 Client: [name] Situation: [description] Issue: [outside skill scope] Action Required: Do not advise. Refer to licensed Canadian CPA. Document gap. ``` ### Test 1 -- Standard self-employed, mid-range income Input: Born 1985, Ontario resident, net self-employment income $50,000, no T4 income, no EI opt-in. Expected output: CPP1 = ($50,000 - $3,500) x 11.90% = $5,533.50. CPP2 = $0 (below YMPE). EI = $0 (not opted in). Line 22200 deduction = $2,766.75. Line 30800 credit base = $2,766.75. ### Test 2 -- High-income, both ceilings hit Input: Born 1978, Alberta resident, net self-employment income $120,000, no T4 income. Expected output: CPP1 = $8,068.20 (capped). CPP2 = $792.00 (capped). Total CPP = $8,860.20. Line 22200 deduction = $4,430.10. Line 30800 credit base = $4,430.10. ### Test 3 -- Income between YMPE and YAMPE Input: Born 1990, BC resident, net self-employment income $75,000, no T4 income. Expected output: CPP1 = $8,068.20 (capped at YMPE). CPP2 = ($75,000 - $71,300) x 8.00% = $296.00. Total CPP = $8,364.20. ### Test 4 -- Below basic exemption Input: Born 1992, Ontario resident, net self-employment income $2,500. Expected output: CPP = $0.00 (below $3,500 basic exemption). No Schedule 8 contribution. ### Test 5 -- Self-employed with T4 employment income Input: Born 1988, Ontario, T4 pensionable earnings $45,000, T4 CPP deducted $2,468.25, net self-employment income $40,000. Expected output: Combined pensionable earnings exceed YMPE. Self-employed CPP on Schedule 8 = $8,068.20 - $2,468.25 (employee) - $2,468.25 (deemed employer) = $3,131.70. ### Test 6 -- EI opt-in calculation Input: Opted-in self-employed, Ontario, net self-employment income $50,000. Expected output: EI premium = $50,000 x 1.64% = $820.00. Below maximum of $1,077.48. ### Test 7 -- Age 72, self-employed Input: Born 1953, net self-employment income $80,000. Expected output: CPP = $0.00 (age 70+ exemption). No Schedule 8 required for CPP. ### Test 8 -- Net loss Input: Born 1985, net self-employment loss of ($5,000). Expected output: CPP = $0.00. No minimum contribution. No Schedule 8 obligation. ### Prohibitions - **Prohibitions list** — - NEVER compute CPP for Quebec residents -- QPP applies, not CPP - NEVER tell a self-employed client they must pay EI -- it is voluntary - NEVER forget to split CPP into deduction (line 22200) and credit (line 30800) -- both halves must be claimed - NEVER apply CPP to a client aged 70 or over at the start of the year - NEVER ignore T4 CPP already deducted when computing self-employed CPP on Schedule 8 - NEVER present CPP2 as optional -- it is mandatory for earnings above YMPE - NEVER combine CPP and EI into a single figure without showing the breakdown - NEVER advise on QPP rates using CPP figures -- they are different - NEVER state that self-employed EI covers regular (unemployment) benefits -- it covers special benefits only - NEVER compute figures without confirming the tax year -- rates change annually ### Disclaimer This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon. The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com). Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes. ## Talk to a verified accountant This skill is a tool, not an engagement. Every taxpayer's situation is different, and the rules in the skill may not match your specific facts. 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