Starting from 2012, you are required to make CPP contributions on employment income and/or self-employment income as long as you are under the ages of 70 even if you are collecting CPP benefit. However, if you are 65 or older and you are a CPP working beneficiary, you can elect to stop paying CPP contributions.
Employee
If you are an employee, to stop paying CPP contribution, you need to submit Form CPT30, Election to Stop Contribution to the Canada Pension Plan, or Revocation of a Prior Election, to the Canada Revenue Agency (CRA). You also need to give a copy of Form CPT30 to your employer so that your employer can stop withholding CPP from your pay cheques.
The election takes effect on the first day of the month following the date you give Form CPT30 to your employer.
Self-employee
If you have only self-employment income, you have to make the election on Schedule 8 while you file your personal tax return. Enter the month for which you choose to start the election at box 372 on Schedule 8. The date cannot be earlier than the month you turn 65.
Employee and self-employee
If you have employment income and self-employment income, the election filed using Form CPT30 applies to all pensionable income including self-employment income.
The effective date is the first day of the month following the date you gave this form to your employer. However, if you want to elect to stop paying CPP contributions on your self-employment earnings on an earlier date, you can enter the month you want to stop contributing in box 372 of Schedule 8.