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Personal Tax Question: How to declare RRSP with Employer matching the amount

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  • Apr 14th, 2018 11:40 am
[OP]
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Dec 6, 2010
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Personal Tax Question: How to declare RRSP with Employer matching the amount

Hello RFDers

My employer matches my RRSP contribution to 5% of my salary so I need some clarification that what RRSP amount do I declare when my submit taxes.

I got 2 receipts from the bank for 2 separate accounts (mine and their) but the employer has showed their contribution on box 40 on my T4.

Please advise if I need to declare only my contribution or combined for RRSP

Thanks you all!
17 replies
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May 8, 2014
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Toronto, ON
From what I understand, you don't need to do anything else.

Box 40 is for taxable benefits/allowances, which the employer's matching would qualify as. I believe whatever is in Box 40 is basically going to be additional taxable income.
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[OP]
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uberbaumer wrote:
Mar 17th, 2017 3:57 pm
From what I understand, you don't need to do anything else.

Box 40 is for taxable benefits/allowances, which the employer's matching would qualify as. I believe whatever is in Box 40 is basically going to be additional taxable income.
Ok but would they qualify as my RRSP contribution amount?? This way atleast I will get something back on the tax return

Thanks!
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gta_guy wrote:
Mar 17th, 2017 4:30 pm
Ok but would they qualify as my RRSP contribution amount??Thanks!
Yes they would.
「もし、奇跡を起こせたら……」
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gta_guy wrote:
Mar 17th, 2017 4:30 pm
Ok but would they qualify as my RRSP contribution amount?? This way atleast I will get something back on the tax return

Thanks!
yes, that is why you get 2 receipts, one for your contribution and one for your employer's matching contribution.
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wayneg9999 wrote:
Mar 17th, 2017 5:02 pm
for employer's matching contribution, you don't get another RRSP slip. It is on your T4 box 52, pension adjustment. This amount basically decreases your RRSP contribution room next year.

You should get an RRSP contribution slip for the 5% you contibuted.
Your first statement is correct only for a RPP(i.e. a normal define benefit or define contribution pension plan) which the matching amt is not included as a taxable income on the T4 for the year(i.e. not shown on box 40 and not included in box 14 of T4)). But then you don't get a contribution receipt for a RPP. So your second statement is only correct for a group RRSP plan.
If you have a group RRSP plan which the matching contribution is included in the box 14(employment income) and box 40, then you should get a RRSP contribution receipt(he is getting one as he said he got 2 receipts) and deduct it. Otherwise you will be taxed twice for the matching contribution(i.e. as taxable income now and taxed as taxable income when you withdraw) without deduction when it is put into RRSP now.
The only time it would be included in your T4 box 52, pension adjustment is if the matching contribution is not included in box 14(employment income) which is how is reported for a normal RPP(registered pension plan).
That is the difference between a RPP & a group RRSP. You must have one of them. Do you know which one do you have from your work place?
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wayneg9999 wrote:
Mar 17th, 2017 5:02 pm
for employer's matching contribution, you don't get another RRSP slip. It is on your T4 box 52, pension adjustment. This amount basically decreases your RRSP contribution room next year.

You should get an RRSP contribution slip for the 5% you contibuted.
This is not correct. Disregard.

OP - You need to claim both RRSP receipts.

The Box 40 amount represents a taxable benefit that is included in Box 14. The 5% employer contribution is included in income, which will be offset in your tax return by one of the RRSP contribution receipts.

This is not a pension plan and has nothing to do with box 52.
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gta_guy wrote:
Mar 17th, 2017 4:30 pm
Ok but would they qualify as my RRSP contribution amount?? This way atleast I will get something back on the tax return

Thanks!
Most of the time with employer matching and direct employee contributions your payroll isn't deducting taxes on these income amounts ... so you shouldn't "get something back on the return" on these amounts since they should have not deducted anything off of them in the first place.

e.g. if you made $50k of income your payroll would calculate a certain amount of taxes to pay.
If you participated in RRSP contributions for $2.5k of your own and the company matched $2.5k, technically you've made $52.5k of income, but they calculated taxes owing as if you made only $47.5k (and excluded the $5k from the calculations of taxes to be withheld).

All else being equal if you would have expected a $30 refund with $50k of income and no RRSP, you'd expect the same $30 refund with $52.5k of income and $5k RRSP ($2.5k yours, $2.5k matched) because they've adjusted the deductions accordingly on every pay period.

Your RRSP receipt(s) in this case should show a total of $5k contributed.
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gta_guy wrote:
Mar 17th, 2017 3:24 pm
Hello RFDers

My employer matches my RRSP contribution to 5% of my salary so I need some clarification that what RRSP amount do I declare when my submit taxes.

I got 2 receipts from the bank for 2 separate accounts (mine and their) but the employer has showed their contribution on box 40 on my T4.

Please advise if I need to declare only my contribution or combined for RRSP

Thanks you all!
You declare the full amount (including the employer portion). The portion the employer paid is included in your income on the T4. Your employer likely gave you the tax break on the RRSP on your cheques, so you won't likely have a tax refund coming on it (you could have a refund based on other things of course). If you don't declare the full RRSP contributions (including the match) you will likely owe tax since you already got the tax break on that amount.
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Also, the RRSP contribution slip you get from Whatever company your employer has the RRSP stuff with will include the full amount (not just your contribution as someone else said).
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dutchca wrote:
Mar 17th, 2017 11:06 pm
This is not correct. Disregard.

OP - You need to claim both RRSP receipts.

The Box 40 amount represents a taxable benefit that is included in Box 14. The 5% employer contribution is included in income, which will be offset in your tax return by one of the RRSP contribution receipts.

This is not a pension plan and has nothing to do with box 52.
Yup I have a group RRSP. Thanks for the clarification.

Sorry OP for confusing you more, please disregard my previous response.
[OP]
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dutchca wrote:
Mar 17th, 2017 11:06 pm
This is not correct. Disregard.

OP - You need to claim both RRSP receipts.

The Box 40 amount represents a taxable benefit that is included in Box 14. The 5% employer contribution is included in income, which will be offset in your tax return by one of the RRSP contribution receipts.

This is not a pension plan and has nothing to do with box 52.
Thanks a lot everyone.

I have also realized that I only claimed my RRSP contribution in 2015 leaving out the employer portion. How do I go back and claim this? Is this possible to do in any of these TAX Software?

Thanks again
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gta_guy wrote:
Mar 18th, 2017 8:59 pm
Thanks a lot everyone.

I have also realized that I only claimed my RRSP contribution in 2015 leaving out the employer portion. How do I go back and claim this? Is this possible to do in any of these TAX Software?

Thanks again
Form T1 - ADJ.

Some tax software has the form, but you would need to file it manually. You can use myaccount to file the adj online.
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gta_guy wrote:
Mar 18th, 2017 8:59 pm
Thanks a lot everyone.

I have also realized that I only claimed my RRSP contribution in 2015 leaving out the employer portion. How do I go back and claim this? Is this possible to do in any of these TAX Software?

Thanks again
Use your My CRA account to adjust your 2015 return.

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