CPP Contributions for Sole Proprietorship
(Newfoundland and Labrador)
How Do You Record CCP Contributions For Sole Proprietors
I am a work from home bookkeeper in Canada.
I have 3 new sole proprietorships that will be contributing to CPP this year. I will also contribute for my own business. None of the businesses use the payroll system - only owner's draw.
I need to set up accounts in the chart of accounts for these expenses but I am not sure how to input this. Any suggestions?
You don't need to record anything on your books for CPP contributions for sole proprietors.
When each business owner, yourself included, prepares your T1 income tax and benfit return, you will complete a T2125 schedule. The tax software program will also complete Schedule 8 - CPP or QPP Contributions on Self-Employment and Other Earnings. The schedule will calculate your CPP credit too.