In a previous post I outlined my situation - went to US as non-resident, paid in US from US payroll, was brought back to canada early, refiled as deemed resident and so on.
Here's my question, While I was in the US I did not contribute to my CPP, since I left under assumptions of non-resident status and moreso because I was paid in the US (paid into FICA). Since my accountant decision to refile 2003 and declare me a deemed resident, how do I best handle the fact that I did not contribute to CPPP? Can I pay up my CPP retroactively?
Likewise, does CRA allow retroactive RRSP payments? This is more of a joke becasue we all know moeny to the government is generally uni-directional. I am serious about CPP however.
Many thanks, Richard
Deemed resident now. What to do about CPP? RRSP?
Moderator: Mark T Serbinski CA CPA
You filed as a <u>resident</u>, not a deemed resident, which is generally reserved for Gov't wokers abroad.
It was not the fact that you were or were not resident of canada, which determined whether or not you paid FICA, it was the fact that you worked as an employeee in US. You were correct to pay FICA. Remember to includse these FICA payments towards your foreign tax credit on your Cdn return.
If you contributed six 'quarters' to SS, you will be entitled to collect some SS at retirement. You may very well have, since you worked part of 2 years in US. You would want to get a hold of your Social security account (usually issued mid-year each year) to see if they credit you with 6 quarters or not. Keep track of these papers until you retire.
As to electing to pay CPP on these foreign earning, see Form CPT20 at CRA website.
You will see that, since you contributed to FICA in US, you cannot also elect to pay CPP on this income.
Your RRSP contributions cannot be retroactive, of course, but the foreign wages will have generate more contribution room which you can certainly use now, and on into the future.
<i>nelsona non grata... and non pro</i>
It was not the fact that you were or were not resident of canada, which determined whether or not you paid FICA, it was the fact that you worked as an employeee in US. You were correct to pay FICA. Remember to includse these FICA payments towards your foreign tax credit on your Cdn return.
If you contributed six 'quarters' to SS, you will be entitled to collect some SS at retirement. You may very well have, since you worked part of 2 years in US. You would want to get a hold of your Social security account (usually issued mid-year each year) to see if they credit you with 6 quarters or not. Keep track of these papers until you retire.
As to electing to pay CPP on these foreign earning, see Form CPT20 at CRA website.
You will see that, since you contributed to FICA in US, you cannot also elect to pay CPP on this income.
Your RRSP contributions cannot be retroactive, of course, but the foreign wages will have generate more contribution room which you can certainly use now, and on into the future.
<i>nelsona non grata... and non pro</i>