In June 2016, finance ministers reached an agreement to expand the Canada Pension Plan (CPP) benefits by increasing premiums over a seven-year period starting in 2019. Employers and employees have over two years to prepare for the changes. The goal of the CPP expansion is to increase the benefits paid during retirement. Based on the agreement an average worker earning $55,000 in 2019 will see an additional $7.00 monthly deducted toward CPP. Once the agreement is fully implemented in 2023 the same $55,000 earnings will result in an extra $34.00 monthly deduction toward CPP premiums. The CPP benefits paid during retirement are expected to increase by one third...

The PD7A is a Canada Revenue Agency (CRA) payroll remittance form and Statement of Account. On it, you can report EI premiums, CPP contributions, and federal income tax withheld from your employee's pay, as well as view current balances on your CRA Business Account. Starting in May 2016, Canada Revenue Agency began sending new, simple, and easy to read PD7A Statements. The re-designed statement of account will have the most important information on the first page, set out in a clear and simple format. This makes it easier for you to understand your payroll obligations. The first page will display the most important information – remitter type, due...

Did you know? If you file online using certain NETFILE software products that have been certified by the Canada Revenue Agency (CRA) and you are fully registered for My Account, you can use the new Auto-fill my return service to automatically fill in parts of your income tax and benefit return, making the online filing process even simpler. Get more information here: https://www.canada.ca/en/revenue-agency/cra-canada.html?utm_campaign=not-applicable&utm_medium=redirect&utm_source=cra-arc.gc.ca_redirectnwsrm/txtps/2016/tfsk08-eng.html?utm_source=mediaroom&utm_medium=eml  

As it is the beginning of the year, employers may be paying year-end bonuses or commission payments. Should you choose to contribute to your RRSP (Registered Retirement Savings Plan) on these amounts, here is what you need to consider. The RRSP contributions deadline is, February 29, 2016. Your RRSP contribution limit will be referenced on your previous years Notice of Assessment (NOA) or 18% of your last years earned income up to a maximum contribution of $25, 370.00 (for 2016 tax year). If you do not have your NOA, contact the Canada Revenue Agency (CRA) and they will determine your limit after asking the required security questions. The...

There are three main, costly mistakes that the CPA (Canadian Payroll Association) has listed in an article with guidelines on how to prevent them. These common payroll mistakes include miscalculating taxable employment income, neglecting to report taxable employment benefits in the period in which they relate, and failing to remit source deductions on time. Employers can miscalculate taxable income when they overlook certain taxable benefits for an employee. For example certain personal and living expenses paid by the employer need to be taxed as income. When an employee is provided free or subsidized housing the employee must pay taxes on the difference between the FMV (Fair Market Value)...

Alberta is set to change their corporate and personal tax rates. Their corporate taxes changed on July 1, 2015 and personal taxes are set to be changed October 1, 2015 As of July 1, 2015 the corporate tax rates will increase from 10% to 12% - which is still a competitive rate compared to other provinces in Canada. However, it is mentioned that the small business tax rates will remain at the 3%. Alberta has always been the simplest province for calculating personal taxes, and with this year’s budget it is set to change. The new personal income tax rates will be: Income up to $125,000: 10 per...

Canadian minimum wage determinations are based on Provincial Legislation and set by each province separately. The minimum wage is reviewed at different intervals and adjusted according to provincial rules.   The following province will be implementing increases to the minimum wage rate effective September 15, 2015: British Columbia The minimum wage will be increasing from $10.25 per hour to $10.45 for most employees. Please see the link below for details on other wage increases and changes. http://www.labour.gov.bc.ca/esb/facshts/min-wage.htm   The following provinces will be implementing increases to the minimum wage rate effective October 1st, 2015: Please review the links below for more information about the rate increase and how...

Alberta is set to increase the current minimum wage from $10.20 per hour up to $15.00 per hour over the next three years as part of the NDP’s financial plan for our province.  This would set Alberta to have the highest minimum wage in Canada. Ontario and Nunavut currently pay the highest minimum wages at $11 per hour, with Ontario planning to raise it to $11.25 on Oct. 1. By then, the Northwest Territories will have the highest minimum, with a June hike set to take it to $12.50. Alberta is the home to some of the highest wages in the country, as high as 25 per cent...

What is the Employment Insurance Premium Reduction Program? The Canadian government grants reduced Employment Insurance (EI) premium rates to employers if their employees are covered by a qualified short-term disability plan. What are the requirements that the short-term disability plan must meet? provide at least 15 weeks of benefits for short-term disability; match or exceed the level of benefits provided under EI; pay benefit to employees within 14 days of illness or injury; be accessible to employees within three months of hiring; cover employees on a 24-hour-a-day basis. http://www.servicecanada.gc.ca/eng/cs/prp/060.shtml Why does Service Canada offer the Employment Insurance premium reduction to employers? When employers offer a short-term disability plan that provides...

With the tax deadline fast approaching, it's important to know your options.  Did you know that you can file your taxes online for free?  As long as you file them using a CRA-certified tax preparation software or application, you can! Click here to see just how many options you have available. For additional information and other tax tips, click here. Happy filling!