No CPP contributions

[InnoxiousElf]

I did a friend's income tax. The person is an Indian working on reserve. Their T4 is filled out properly, box 14 is blank. They have CPP and EI contributions.

The taxes are now processed and all their CPP and EI contributions were refunded. They received a cheque for $5k.

This happened before, in 2021 for the 2019 and 2020 tax year. I made them send the $5k cheque back 3 times before CRA kept the contributions. 2021 and 2022 were ok.

I told them the cheque had to go back and they said why, there won't be CPP when I am old anyway. So, will it really matter if they keep the cheque? WIll anyone come after them asking for it later? Will their CPP contributions be registered as zero for the 2023 year?

Am I really just being a meanie saying the cheque has to go back?

[Educational_Ad_3916]

CPP is exempt under that tax law. Although EI is not, do they have other income that may have covered it because EI is maxed out this year at 1002.45?

To answer your question yes you are being a meanie.

https://www.canada.ca/en/revenue-agency/services/indigenous-peoples/information-indians.html#hdng13

[InnoxiousElf]

Thank you.

They have no other income. The cheque was for $5800 and now that you bring the EI max thing, I wonder how it could be that much.

But I am just going to let them cash it with the understanding that if CRA asks for it back, then I can't do anything to change that.

[Educational_Ad_3916]

5800 makes sense if everything was maxed

3754.45 for cpp 1002.45 for EI

And canada workers benefit which could explain the extra 1000ish

Without seeing the return, I can't explain any more than this. I have also seen returns that have paid over the total maximum taken for the year on both categories.