CPP & EI OVERPAYMENTS

Employers deduct CPP contributions and EI premiums independently. A person who changes jobs, or has two jobs at once, often has more deducted than the annual maximum. The excess is refunded on the return as a refundable credit.

CPP OVERPAYMENT (LINE 44800)

• Calculated on Schedule 8 (or Form RC381 for those with both CPP and QPP).

• 2026 maximum employee contributions: $4,230.45 for CPP1 and $416.00 for CPP2.

• Overpayments can also occur in the year a person turns 18, starts a CPP retirement or disability pension, turns 70, or dies, because contributions should be prorated for the months they were required.

EI OVERPAYMENT (LINE 45000)

• 2026 maximum employee premium: $1,123.07 (outside Quebec).

• Also refunded if insurable earnings were $2,000 or less for the year: all premiums are refunded.

EXAMPLE

An employee earns $60,000 at one job from January to June and $50,000 at another from July to December. Each employer deducts EI on its own earnings, for a total of about $1,793, but the 2026 maximum is $1,123.07. The difference of about $670 is refunded on line 45000.

KEY POINT

Employers cannot refund the excess; only the CRA can, through the return. The employer's share is not refunded to the employer.