New Payroll Remittance Thresholds & Frequency Rules Effective for 2015

Some remittance threshold amounts were increased for amounts to be withheld after 2014. This may reduce how often you send the CRA your source deductions and how you can make your remittance. Information on other webpages may not be up to date yet.

Remitter types, their Average Monthly Withholding Amounts (AMWA) & Due Dates

Remitter Types AMWA Prior to 2015 AMWA as of 2015 Due Dates New or regular remitter Less than $15,000 Less than $25,000 The CRA has to receive your deductions on or before the 15th day of the month after the month you paid your employees. Quarterly remitter (except new remitters) Less than $3,000 Less than $3,000 If you are eligible for quarterly remitting, the CRA has to receive your deductions on or before the 15th day of the month immediately following the end of each quarter. The quarters are: * January to March; * April to June; * July to September; and * October to December. The due dates are April 15, July 15, October 15, and January 15.

Accelerated remitter threshold 1 $15,000 to $49,999.99 $25,000 to $99,999.99 The CRA has to receive your deductions by the following dates: * For remuneration paid in the first 15 days of the month, remittances are due by the 25th day of the same month. * For remuneration paid from the 16th to the end of the month, remittances are due by the 10th day of the following month. Accelerated remitter threshold 2 $50,000 or more $100,000 or more You have to remit your deductions through a Canadian financial institution so that the CRA can receive them within three working days following the last day of the following pay periods: * the 1st through the 7th day of the month; * the 8th through the 14th day of the month; * the 15th through the 21st day of the month; and * the 22nd through the last day of the month.

Please contact us for more information. Source: Canada Revenue Agency

Life Insurance Policy in a Corporation

Did you know that it is far more cost/tax effective to have your life insurance held in a Holding Company? Now that the top marginal tax rate for Ontario residents is almost 50%, you should consider keeping more of your money in a holding company and possibly transferring personally owned life insurance to the company so that your premiums can be paid with corporate dollars, rather than personal (high tax rate) dollars. Please call us for more information.

Managing Operational Risk – Worker Health and Safety Issues

The Ontario Government is serious about health and safety in the workplace and severe penalties are imposed in event of worker injury in unsafe conditions. For a company to be successful, operational risk attributed to health and safety issues must be addressed each year. The maximum penalties for a violation of the provisions of Occupational Health and Safety Act (“OHSA”) or its regulations (which include an injury in unsafe conditions) are set out in OHSA Section 66. The penalties which could be imposed, for each conviction, result in: * A fine of up to $25,000 for an individual person and/or up to 12 months imprisonment; * A fine of up to $500,000 for a corporation. The Occupational Health and Safety Act (OHSA) is the main legislative Act for Ontario’s for workplace health and safety. Other relevant legislation includes the Workplace Safety and Insurance Act (WSIA), Part II of which deals with the prevention standards for occupational injury and disease; and the Human Rights Code, which often has to be considered in dealing with OHS issues. Both Acts are available along with all of Ontario’s Acts and regulations at the e-Laws website. Some of the health safety issues to address include the following: * Worker safety education on an annual basis; * Delivery vehicle regular maintenance and insurance; * Mandatory hard hat and safety boots on Company premises including multi-level storage areas; * Rules for machine operators and vehicles on company premises including routines for backup of vehicles in parking areas; * Access to first aid stations; * Establishing a joint health and safety committee (“JHSC”). A Joint Health and Safety Committee (JHSC) is a committee of at least two people, who represent the workers and the employer at a workplace. In Ontario, certification training is required for one worker and one management member of a JHSC under the Workplace Safety and Insurance Board. An established JHSC is required under the Ontario Health & Safety Act in any workplace with at least 20 regularly employed workers, and for construction projects three months or longer with 20 or more workers. For further information on Worker Health and Safety, please consult us or visit the Ontario Ministry of Labour website for a wealth of information.

Government Programs & Grants available for SME’s in Canada

Did you know that there are various government programs and grants available for SME’s in Canada? The programs available can provide financing such as grants, contributions, subsidies, and loan guarantees. Find out what type of government financing might be available for your business. Click on the hyperlink link below for more information about : * Name of Program or Grant * Use of Funds * Eligibility * Dollar limits * Terms Government Programs & Grants for SME’s in Canada Please contact us, if you have any questions.

The Family Tax Cut – a drop in the bucket?

Last week the Harper government made good on its election promise to allow for some level of income-splitting for Canadian families. Unfortunately, the benefit is quite nominal. A married or common law couple can claim a maximum federal non-refundable tax credit of $2,000 for 2014 and subsequent taxation years. Couples can claim this credit when they file their 2014 Personal Income Tax Return. In addition to being married or living common law, the couple must also have a child under the age of 18. Please contact us for more information on the Family Tax Cut and to discuss other tax planning opportunities.

The 1 Percenters and the Warped Definition of Progressive Taxation

As a Chartered Accountant, I constantly feel certain sympathy for the taxes our higher income clients pay. Yes……let me repeat, I feel sympathy for them for they pay a disproportionate share of our nations taxes and yet are constantly accused of not paying enough. Jamie Golombek, one of my favorite columnists, published an article on March 13 of this year asking “Are you a 1%er”. It was his usual well written and informative expose that surprised many readers. In it he states:

If you reported income of over $201,400 in 2010, you were part of the top 1% of Canadian income earners. This cohort earned 10.6% of Canada’s total reported income that year and paid 21.2% of all personal taxes. The top 10%, whose income was at least $81,200 that year, accounted for 55% of the total personal tax collected in 2010.

Based on the facts above, it appears the top 1% pays 2 times their proportionate share of taxes. Is this progressive or abusive? The CBC also posted general tax statistics in February of this year. Some of the more salient points were:

$8,200: median (meaning half of the people pay more and half pay less than this) income tax paid by families of two or more people. Unchanged from 2009

245,700: number of individuals who made up the wealthiest 1% of tax filers.

10.6%: how much of Canada’s total income the wealthiest 1% of tax filers: (i.e. those who paid the most tax in) accounted for. Down from its 2006 peak of 12.1%

21.1%: proportion of total income taxes collected paid by the richest 1%. Down from a 2007 peak of 23.3%.

$283,400: the median income of the richest 1%.

$28,000: the median income of the remaining 99%

$90, 100: the median income tax paid by the richest 1%

$1,800: the median income tax paid by the remaining 99%

So what do we disseminate from the data above? Clearly when one takes a step back from the details and assesses the “big picture” we have to ask ourselves the following:

1. Are the current “progressive” tax rates fair?
2. Are current tax revenues resulting from progressive taxation an economically pragmatic or sustainable revenue strategy?

In our socially conscious and democratic country, almost everyone feels a degree of progressive taxation is fair and practical. However, when the numbers start to skew to the levels illustrated above then we have big problem. The 46.41% marginal tax rate the high net income earners are asked to pay on every dollar earned over $135,054 is too high and boarders on abusive – especially considering how little tax lower income Canadians pay as a % of their income. Many of these 1%ers are hardworking entrepreneurs that deal with a myriad of financial risks to their families that are far greater than any faced by your typical employee or executive. Depending on what statistics you read, it is generally understood that about 80% of employment in this country is created by small business. Why should these stalwarts of our society, these risk taking wonder men and women with significant more pressures and risks be penalized by paying disproportionate share of taxes when they can finally profit from their efforts? Although it is not right to do and must be stopped, it should be no surprise that there are many that hide money off shore or in the underground economy. I refer to Newton’s third Law……..for every action there is an equal and opposite reaction. When unfairness is perceived, action is taken.

On the second question, I ask you: How can relying on the top 1% to fund 21.2% of total income tax revenues be an economically sustainable strategy? The fact that the top 10% accounted for 55% of total income tax revenues is even more concerning. Frankly, I see this as a huge future problem for Canada’s economic fabric. As our population ages, we have lower ratio of tax payers funding retirement plans. As our debt continues to climb we require a greater proportion of total revenues required to fund interest payments. Think about this: do we really want to rely on only 254,700 Canadians defined as the top 1%ers to pay over 21% of our total income tax revenues? In today’s very mobile world, this must be seen for what it is – a very risky business tactic. No company would be happy if 1% of their clients represented that % of their revenues.

We need to develop an economy where more of the 99% earn a decent living and pay their fair share of tax. The solution cannot always be to “hit the rich”. Unfortunately the term “progressive taxation” needs to take on a new meaning to make it fairer at all levels of income. Our country needs this.

Small business is the key to driving economic success in ontario

Here is my passion: I believe small business is the key to driving economic success in Ontario. Consider this: there are several hundred thousand small businesses in Ontario. If we could get only half to hire one more employee then we eliminate unemployment. If we can find a way to motivate the small business owner then this concept becomes very feasible. We need to collectively come up with creative ideas that motivate small business owners to employ more people. For example, can we use the EI reserves to provide significant grants to small business employers to hire someone off the EI roll? I ask all my readers to provide ideas to me to consider as a group.

 

New book written by steve hackney reviewed for canadian business applications by louis sapi for canadian business applications by louis sapi

“Why Businesses Stop Growing – And What You Can Do About It”

Louis Sapi, Toronto, Ontario

This is not an ordinary book – it is a business-building system. A proven, step-by-step approach which helps you to accelerate the growth of your business and overcome the financial challenges that growth brings to every owner-managed business.

Louis J Sapi qualified as a Chartered Professional Accountant in 1986, has an MBA from the renowned Schulich School in Toronto. He has always been a dynamic champion for entrepreneurs and has helped hundreds of owner managed businesses prosper by helping them manage the challenges of growth.

Co-written with Steve Hackney (one of the world’s leading marketing and business growth experts and creator of the Business Growth System), the book focuses on 3 rarely discussed but critically important areas…

Section 1: Why Businesses Stop Growing – a unique insight into the factors that contribute to the slowing down of growth of many owner-managed businesses.

Section 2: How to Grow – a time-tested and proven blueprint to rapidly grow your business.

Section 3: How to Financially Manage Your Business – with growth comes growing pains. This final section looks at proven ways to financially manage the growth of your business, with particular attention to cash flow and profitability.

You will find the book an invaluable aid to both your business’s growth and the financial challenges every business faces during its lifetime.

Regardless, if you are just starting out in business or you are running a long-established one, if you are serious about growing your business, this book is an absolute must for you.

Why Business STOP Growing shows you how to:

Systematically and strategically grow your business from the ground up
Use the 4 ‘Business Multipliers’ to get exponential growth
Successfully apply ‘The 5 M’s of Growing Your Business’
Easily manage the financial challenges every business faces
Take complete financial control of your business
And much, much more…
Louis’ unique and proven approach to tackling complex financial situations any business can face has helped him to create and develop his accounting firm, HS & Partners LLP, into one of Canada’s most forward-thinking firms.

Our hardback book is available for purchase at the price of $30.00. However, if you request a FREE no-obligation meeting with us, we will give you a FREE copy. We genuinely believe it is required reading for every business owner. Phone us today at (905) 678-2740.