EFILING ERROR, OLDER TAX RETURNS, CPP/EI OVERPAYMENT

EFile error 90308 or 92124 : error arising from CPP contribution overpayments:

When efiling a return for a tax year that is more than 4 years before the current tax year, error 90308 may occur if there is an overpayment of CPP. The error description in UFile will be something like this:

There are entries for CPP/QPP contributions and one of the following situations applied to your client’s return:

1. Lines (22215 + 30800 + 44800) must equal line 50340

A related error which may arise for other tax software is 92124 which states:

Your client is no longer entitled to claim the Canada or Quebec Pension Plan overpayment because the filing date of this return is more than four years after the end of the tax year.

Why is there an error?

When a T4 is entered, Ufile generates a Schedule 8 which calculates the taxpayer’s required CPP contributions. If the taxpayer’s actual contributions exceed the required contributions, then there is an overpayment. Overpayments are normally reported on line 44800 and refunded to the taxpayer.

However, under the Canada Pension Plan act, a person must ask for a refund of CPP overpayments no later than four years from the end of the year the overpayment occurred.^[1] If the time limit has passed, UFile correctly leaves line 44800 blank, i.e. the refund is $0.  But the forced $0 on line 44800 creates a filing error because the CRA expects that contributions (Lines 22215 and 30800) + any overpayment (Line 44800) should equal the taxpayer’s actual contributions (Lines 50340 and 50341).  

UFile has properly omitted the refund on line 44800, but unfortunately the math error prevents efiling. This can be considered a bug in CRA’s programmatic review of the return, since the return is prepared properly by UFile.

Options to address error:

There are two options. One is to mail the tax return.

Another option is to perform a workaround that will allow efiling. The amounts entered into UFile for T4 Box 16 (CPP contributions) on one or more of the T4 slips can be amended to make the total contribution equal to the required contribution, resulting in no overpayment and hence no math error.

Step 1: In UFile, go to Schedule 8, Part 3, which is the calculation of CPP contributions and overpayment on employment income. Look for the line that reports the total required contributions on CPP pensionable earnings. The line number may be different depending on the tax year. For example:

2018:

2019:

Step 2: The required contribution amount needs to match the total of the box 16 amounts of the entered T4s. If there is only one T4, substitute the current amount in box 16 in UFile with the required contribution amount from Schedule 8. If there are multiple T4s, reduce one or more of the box 16 amounts such that the total of the box 16 amounts is equal to the required contribution amount.

CRA approval of workaround:

The workaround involves deliberately misreporting T4 slip information: the T4 information entered into UFile will not match the actual T4 slips. This might suggest that the workaround is not advisable. However, a call with a CRA rep from the CVITP helpline in January 2025 confirmed that the workaround is acceptable. In the meantime, it appears the CRA has a plan to update its software to avoid this efile error from occurring.^[2]

This workaround is also a solution provided for the related error 92124 by WealthSimple Help Center  and by Wolters Kluwer which is a company that provides e-file certified tax preparation software.

EFile reconciliation error regarding EI contributions and overpayment:

All that is stated above for a CPP overpayment applies in a similar way to an EI overpayment. The actual error message may vary and may include a reference to PPIP premiums which is a Quebec matter and can be ignored.

There could be an EI overpayment due to rounding, or due to an error made by an employer, or because a person worked for two or more employers who independently calculated required contributions, with the total being above the maximum.

If there is an overpayment, UFile should show the required EI contribution and overpayment in Form T2204, but unfortunately UFile may not show this form. Therefore it is necessary to manually calculate the required EI contribution using CRAs prescribed rates available on the internet, which are provided below for convenience.

The required EI contribution needs to match the total of the box 18 amounts of the entered T4s. The required contribution is equal to the EI Rate X (the lesser of the total box 14 amounts or the maximum insurable income)

If there is an EI overpayment, and there is only one T4, then in UFile, substitute the current contribution amount in box 18 with the required contribution. If there are multiple T4s then reduce one or more of the box 18 amounts such that the total of the box 18 amounts is equal to the required contribution.