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Self-employed Person

Cessation of self-employment


If you are no longer self-employed, you should inform your trustee in writing of the exact date of your cessation of self-employment and make your last contributions on or before the next contribution day. Your last contributions will be calculated based on the mandatory contributions that would be payable for the whole contribution period and adjusted by the number of days that you remain an SEP during the period. The following example shows how it works:

If you
- have been contributing $1,000 on a monthly basis;
- have set the last day of every month as your contribution day (i.e. your contribution period is the first day to the last day of the calendar month); and
- will cease to be self-employed after 15 April (i.e. last day of your self-employment is 15 April),

then you should
- inform your trustee in writing of your cessation of self-employment on or before 30 April (i.e. the next contribution day);
- make your last contributions on or before 30 April (i.e. the next contribution day); and
- contribute $500 (i.e. $1,000 ÷ 30 x 15) as your last contribution as you will be self-employed for only 15 out of the 30 days in April.
 

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