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

Forum|Forum|2 years ago
April 22, 2023
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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.

GHarpe

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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