Box 40, Other taxable allowances and benefits

I am on LTD and CPPD, my employer contributed $1000 towards my RRSP while on leave. I just received my T4 and I noticed it shows about $50 deducted under employee’s CPP contribution. From what I have read, if you are on CPPD you can’t be contributing towards CPP and I don’t want to get my file red flagged. Has anybody been issued a T4 regarding a taxable benefit and was CPP deducted. Do I need to contact CPPD to explain this situation?

Thank you.

I had a similar issue with some taxable benefits, I didn’t know that I didn’t have to pay CPP deductions. Revenue Canada cancelled it out after I filed my taxes and increased my refund.

I had a similar situation last year with a taxable benefit and a very small amount of CPP deducted and I got the amount deducted as a refund but I wasn’t officially approved for CPPD at that point last year when I did my tax return. I would assume I would get the $50 back as a refund this year, my concern was being on CPPD and CPPD thinking I am working and got CPP deducted but I would assume many people on LTD still receive taxable benefits and deal with CPP deductions. I would rather not have to deal with Service Canada and just live below the radar.

Yeah they did send me a letter asking if I was working because I had employer income from some old stock options. You could pre-emptively send them a letter explaining it’s not for current work.

CRA is pretty smart when it comes to this stuff. I would file your taxes normally and put the $50 in and see if CRA re-adjusts it automatically and credits that $50 back to you. If they don’t, you can send in a request and they will fix it. I don’t think you have any concern about getting “red flagged” or getting into trouble.

I did my taxes yesterday and I got the $50 back in a refund. I decided to call Service Canada to give them the heads up. Explained I am off work, but my work gave me a $1000 RRSP and they took off the $50 as a CPP deduction by mistake it looks like. The person took down all of the information and noted it down on my file that it was a RRSP and not work income and I got the $50 back on my taxes. Rather get ahead of it rather than some eager person at Service Canada sending me a letter or potentially red flagging me.