The 2013 federal budget extended the hiring credit for small business (HCSB), a credit intended to stimulate new employment and support small businesses. The HCSB provides small businesses relief from the employer’s share of employment insurance (EI) premiums paid in 2013. The credit does this by paying up to $1,000 based on increases in an […]
Estate planners often suggest that the RRSP/RRIF holder designate a beneficiary of the plan. There are many advantages:
Probate fees can be avoided because the funds transfer direct to the beneficiary.
The funds are not exposed to the liabilities of the deceased’s estate.
No elections are required for the “refund of premiums” status.
Premium refunds allow a tax-deferred transfer […]
In a 2013 Technical Interpretation, CRA was questioned about door prizes received by all attendees at a company social function.
CRA commented that their tax-free $500 gifts and awards policy would apply to all attendees including the employee, the employee’s spouse, and all other non-arm’s length individuals that received a gift.
It was suggested that gift cards […]
In a recent Federal Court of Appeal case, the Court found that the Crown has priority over secured creditors regarding deductions at source that were withheld but not remitted to the Canada Revenue Agency (CRA)
The property is deemed to be held in Trust. The secured creditor is obligated to remit to the Receiver General the […]
In general, every business starts out of someone’s home. Even if the business will eventually grow to a multi-million dollar business, it has to start somewhere. The home office is usually one or two rooms in the home that are used for record keeping, storage and meetings. The office typically has a desk, a few […]
The Canada Learning Bond (CLB) is part of the Canadian RESP program. Actually the CLB is a grant. The big difference between this grant and the regular RESP grants is that no contribution is required. Once you qualify, you apply, and you can receive up to $2,000 deposited in your RESP account per child. The […]
A RESP is a savings plan for post-secondary education which allows funds to accumulate on a tax-deferred basis up to certain limits. There is no annual limit for contributions. For each beneficiary the lifetime limit on contributions is $50,000. Although there is no tax deduction, the interest and income earned within the plan is sheltered, […]
CPP/QPP—2013
Year’s Maximum Pensionable Earnings
$51,100.00
Year’s Basic Exemption (by pay period type):
* Annual
$3,500.00
* Monthly (12)
$291.66
* Semi-Monthly (24)
$145.83
* Bi-Weekly (26)
$134.61
* Weekly (52)
$67.30
Maximum Contributory Earnings
$47,600.00
Contribution Rate – Employee/Employer
4.95{7b1d1f20a894a4c63204ce17147762da143d82407cb3c58d1de0cbde1ab01a62}
Contribution Rate – Self-Employed
9.9{7b1d1f20a894a4c63204ce17147762da143d82407cb3c58d1de0cbde1ab01a62}
Maximum Contribution – Employee/Employer
$2,356.20
Maximum Contribution – Self-Employed
$4,712.40
EMPLOYMENT INSURANCE – 2013
Maximum Annual Insurable Earnings
$47,400.00
Premium Rate (Employee)
1.88{7b1d1f20a894a4c63204ce17147762da143d82407cb3c58d1de0cbde1ab01a62}*
Premium Rate (Employer, 1.4 x Employee)
2.632{7b1d1f20a894a4c63204ce17147762da143d82407cb3c58d1de0cbde1ab01a62}*
Annual Maximum Premium (Employee)
$891.12*
Annual Maximum Premium (Employer)
$1,247.57*
*Unless a reduced premium […]