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New Member
posted Apr 22, 2023 1:12:37 PM

As a sole proprietor, can I deduct my CPP contribution as a business expense? I have no employees.

In an employer-employee situation, each party is responsible for 50% of the employee's total contributions. In a sole proprietary situation, I would think I can claim the 50% of the "employer" portion.

CRA's explanation for line 9060 wasn't very helpful. It says, "The CPP is for all workers, including the self-employed." However, there's no mention of whether I can claim the contribution as a business expense.

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1 Replies
Intuit Alumni
Apr 27, 2023 5:47:28 AM

As per the Canada Revenue Agency (CRA) Business Expenses As the employer, you can deduct your part of the following amounts payable on employees' remuneration:

  • CPP or QPP contributions
  • employment insurance (EI) premiums
  • Provincial parental insurance plan premiums, which is an income replacement plan for residents of Quebec (visit Revenu Québec for details)
  • workers' compensation amounts for your employees

It does not indicate that you can claim 50% of the employer contribution as you are not an employer due to the lack of employees. For further clarification please call the CRA at 1-800-959-8281.

 

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