# Reached CPP, EI maximums with previous employer, new employer still deducts



## bfsog (Oct 24, 2016)

Hello,

I was employed from January 2016 - September 2016, shortly before I left them my CPP deductions reached $2544.30 and my EI deductions reached $955.04 for the year 2016.

Now, my new employer recently paid me for the first time and I was deducted $68.15 for EI and $172.22 for CPP.

My new employer is small in Calgary (part of a larger company based in the US) and as such, they use a third party to handle the payroll.

My questions are

1. What should I do to fix this?
2. My new employer never asked me to fill in a TD1, is this why I am being taxed?
3. Is there a way to be refunded this money or will it be in my tax return next year?


Thanks.


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## Userkare (Nov 17, 2014)

I ran into something similar myself. You must have the amount deducted by EACH employer, then wait for a refund when you file your tax return.

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/clcltng/ei/hstrc-eng.html

_The annual maximum insurable earnings ($51,300 for 2017) apply to each job the employee holds with different employers (different business numbers). If an employee leaves one employer during the year to start work with another employer, the new employer also has to deduct EI premiums without taking into account what the previous employer paid. This is the case even if the employee has paid the maximum premium amount during the previous employment._


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## mark0f0 (Oct 1, 2016)

A TD1 won't get around EI deductions or CPP deductions even if you are over the limits. You'll have to wait for the tax refund. Congratulations on being able to find a new job in the absolutely dreadful Calgary job market these days.


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## Eclectic12 (Oct 20, 2010)

bfsog said:


> { New employer is still deducting EI & CPP.}
> My new employer is small in Calgary (part of a larger company based in the US) and as such, they use a third party to handle the payroll.


Big, small, outsourced or not, Canada only or multinational ... from my experience and what friends have commented on - the deductions are taken as if the new job was the first job the employee has worked at.




bfsog said:


> My questions are
> 1. What should I do to fix this?


If you find a way - let us know.

The only solution I had talked about is to wait until the tax return is filed (around Mar 2017). It will reconcile the extra paid so that either any outstanding taxes owing will be reduced or if no taxes are owing, a refund will be paid.





bfsog said:


> 2. My new employer never asked me to fill in a TD1, is this why I am being taxed?


No ... though I'd follow up about the TD1 anyway as there might be other items it may affect.




bfsog said:


> 3. Is there a way to be refunded this money or will it be in my tax return next year?


It will be in the final 2016 tax return that is to be filed by April 2017.


Cheers


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## upstream (Mar 22, 2012)

Been in this situation several years ago. The over payment shows up as a credit in your next tax return. H&R did whatever paperwork might have been involved when I filed taxes. I was told at the time there was a form I could have used to have my new employer not deduct further payments but once paid to just settle it upon filing a tax return. It worked out.


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