With tax season right around the corner, employers are working quickly and efficiently to get all of their employee T4, T4A and RL-1 slips out. Through the year employers are required to withhold, repot and remit the statutory deductions taken from the employees pay. The amounts paid to the employee, and the statutory deductions withheld must be sent to the federal government. In addition to federal withholdings, remitting, and reporting requirements, Quebec employers must also report and remit Quebec statutory deductions withheld during the tax year.  What is a T4 and RL-1 slip and when should it be completed? A T4 is T4 – Statement of Remuneration, and RL-1 is...

The federal government has announced new changes to Child Tax Credits on the TD1 Form. Effective January 1st 2015, employees will no longer be able to claim the Child Tax Credit on Line 2 of the TD1 form. An enhanced Universal Child Care benefit has replaced the Child Tax Credit and will now be processed through personal income tax filling rather than through payroll. Current Child Tax Credit claimants should have the Child Tax Credit removed unless they are claiming Line 2, Caregiver amount for children under age 18, at the end of the year. The Caregiver Amount should only be used in the case where a child...

Maximum Pensionable Earnings For 2015 With the end of 2014 drawing closer, it is time to start thinking of the coming year. Canada Revenue Agency has announced changes to the maximum pensionable earnings for 2015. Under the Canada Pension Plan (CPP) for 2015 the maximum pensionable earnings will be up - $53,600. This is up from $52,500 in 2014. Contributors who earn more than $53,600 in 2015 are not required or permitted to make additional contributions to the CPP based on earnings exceeding this amount. The basic exemption amount for 2015 remains at $3,500, and the employee and employer contribution rates for 2015 will remain unchanged at 4.95%,...

The Internal Revenue Service recently made it easier for some cross border taxpayers to get favorable U.S. tax treatment and took additional steps to simplify some procedures. Many Canadians and Americans with registered retirement savings plans (RRSPs) and registered retirement income funds (RRIFs) now automatically qualify for tax deferral similar to that available to participants in U.S. individual retirement accounts (IRAs) and 401(k) plans. For more details, please take a look at the attached link: https://www.irs.gov/newsroom/irs-simplifies-procedures-for-favorable-tax-treatment-on-canadian-retirement-plans-and-annual-reporting-requirements Dawne Helischauer / Sr. Benefits Specialist / PEO Canada

National payroll week acknowledges the dedication and hard work that payroll professional do to keep Canada paid – Today, Tomorrow, and every day. As payroll professionals we keep 1.5 million employers compliant with 190 federal and provincial regulatory requirements that are always changing. These employers count on payroll professionals to annually pay: $860 billion in wages and taxable benefits $268 billion in statutory remittances $94 billion in health and retirement benefits   This year there were 28 events held around the country, and each year the CPA organizes for a guest speaker to come in a talk to all of us. This year the presentation was on “Managing...

On July 14, 2014 the Ontario Budget announced changes to the provincial tax rates retroactive to January 1, 2014 for employees earning over $150,000. In order to capture the retroactive provincial tax increase effective January 1, 2014, a higher tax rate in payroll deductions from September 1 to December 2014 has been established. Effective September 1, 2014, the Ontario provincial tax rates will be as follows: 11.16% for income between $80,242 and $150,000; 14.16% for income between $150,000 and $220,000; 17.16% for income between $220,000 and $514,090; and 13.16% for income greater than $514,090. Some key points: Typical income tax updates are done on January 1 and July...

Employers and employees in Ontario, Prince Edward Island, Saskatchewan, Alberta and Quebec need to be aware of the changes that have occurred or will be occurring this current year. Necessary updates to payroll systems and payroll software must be made. As of June 1st, 2014 all minimum wage rates in Ontario have increased as per the chart below. Ontario payroll deductions must be made accordingly: Minimum Wage Rate Current wage rates Effective June 1, 2014 (As announced) General Minimum Wage $10.25 per hour $11.00 per hour Student Minimum Wage $9.60 per hour $10.30 per hour Liquor Servers Minimum Wage $8.90 per hour $9.55 per hour Hunting and Fishing...

Payroll professionals are faced with new and different scenarios each day and our education does not stop with the achievement of a Canadian Payroll Association (CPA) certification or a school diploma.  The life of a payroll services professional is always changing and far from boring. As Provincial and Federal Legislation are frequently revised, subscribing to various newsletters and websites will keep you up to date and notify you of changes.  However, it is still best practice to refer back to Government resources for the most accurate information when you need to update your payroll system and payroll software.  The resources for payroll services professionals are endless.  Websites available...

As an employer, it is important to protect and properly manage your employees’ social insurance numbers in your payroll system and payroll software. In an effort to cut cost and reduce the amount of identity theft in Canada, the Federal government has started phasing out the plastic Social Insurance Card as of March 2014. It is said that this will save the government about 1.5 Million dollars per year. Currently there is a fee of $10 to replace this card if it is ever lost or stolen, but there is no initial cost to get your first card. This is one of the most used cards for identity...

Tax season is approaching and T4 Tax Slips are being distributed through employer payroll systems and Canadian payroll software. If your company uses payroll outsourcing, then outsourcers will be preparing the correct T4 Tax Slips for your employees. Below is important information for your company when preparing T4 Tax Slips. What are T4 Tax Slips and how do they affect a payroll system? A Canadian T4 tax slip, or Statement of Remuneration Paid, is prepared and issued by an employer to advise employees how much employment income they were paid during a tax year and the amount of income tax that was deducted. Quebec employees will receive a...