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Cpp contribution overpayments

If You have declared bankruptcy and the trustee asked for your pre and post tax returns are they intitled to 100% or 50% (if you have been paying a surplus payment) of cpp and ei contributions over the annual maximums for that year because of a change of jobs creating you to over pay.

Posted from: British Columbia

One Response to “Cpp contribution overpayments”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

The trustee is entitled to 100% of the tax refunds for the year of bankruptcy and any previous years. So if there is a refund in either of those periods it is all paid directly to your trustee and it is used to create a small benefit to your creditors. The tax refunds are not seen as income, hence the formula is not used, they technically are considered assets and that is whey the full amount is lost.