Payroll Tip of the Month
This page provides tips that are useful for everyone from payroll processing staff to human resource managers, to workers compensation and pension administrators. Tips for the current year are provided immediately below with older information provided in an archive at the bottom of the page.
July 2017 - Labour Employment Standards Calculation Tools - Did you know that Government of Canada's Labour Program website offers a series of Labour Employment Standards Calculation Tools to assist in your payroll calculations? These include a General Holiday Calculator for figuring out holiday entitlements for most standard employment situations. Also included is a Vacation Pay Calculator that is designed to calculate minimum vacation pay entitlements for employees subject to federal labour standards legislation in a standard employment situation. Click Here to learn more.
June 2017 - Vacation Standards Compliancy and More - With the summer vacation season fast approaching, the Canadian Payroll Association (CPA) reminds employers that they have the responsibility to ensure that employees properly receive their legislated vacation leave and pay. To assist in this regard, the CPA offers a one-day seminar on employment standards in each jurisdiction. Among the topics discussed is statutory holidays and vacations. Click Here to learn more.
March 2017 - T4 reporting for certified non-resident employers - The Canada Revenue Agency (CRA) states that under recently enacted legislation, a certified non-resident employer may not have to report the salary, wages, or other remuneration paid to a qualified non-resident employee if the amount is $10,000 or less if certain conditions are met. Non-resident employers who apply for non-resident employer certification, will not have to withhold and remit tax on the payments they make to non-resident employees who are working in Canada for a limited time and are exempt from tax in Canada under a tax treaty. Click Here to learn more.
January 2017 - Payroll Podcasts From the CRA - Did you know that the Canada Revenue Agency (CRA) now provides a podcast series? Tune in to (or download) the very first podcast and hear from a CRA expert as she talks about taxable benefits and the key concepts employers need to understand to determine if a benefit they give their employees is taxable. Additional electronic CRA services are highlighted, including Direct Deposit, My Business Account, and help for persons with visual impairments. Click Here to learn more about this exciting new information series.
November 2016 - Businesses take notice: Your tax information just got clearer! - The Canada Revenue Agency (CRA) is redesigning the correspondence it sends to Canadians, including notices of assessment (NOA) and notices of reassessment (NOR). The CRA has made changes to how the notices are structured, designed, formatted, and written, making the information easier to read and understand. NOA and NOR assessments now displays the most important information clearly with the account summary on the first page. The text is easier to understand and includes only the most important information. Additional electronic CRA services are highlighted, including Direct Deposit, My Business Account, and help for persons with visual impairments. Click Here to learn more about the revised format.
October 2016 - CRA Business Tax Reminders - Did you know that the CRA provides a mobile app lets business users create custom reminders and alerts for key CRA due dates related to instalment payments, returns, and remittances? The Business Tax Reminders mobile app is recommended for small and medium-sized businesses, and allows users to a) create custom reminders for key CRA due dates related to instalment payments, returns, and remittances; and b) customize and tailor the reminder system for their personal business deadlines with either calendar or pop-up messages. Click Here to learn more about the CRA Business Tax Reminders mobile application.
August 2016 - Businesses: You can pay your taxes online through your bank or directly on the CRA website - In the event of a Canada Post postal disruption, you can use online payments to pay your business taxes to the Canada Revenue Agency (CRA). It’s more efficient than mailing a cheque, especially if you’re making more than one payment a year. Even if a postal disruption occurs, you are still required to make every effort to submit your payment on time to the CRA. Click Here to learn more about online services can help you meet your tax obligations on time to avoid late penalties and charges.
June 2016 - Tax and benefit implications during a postal disruption - In the event of a postal work stoppage, the CRA has posted a useful set of online options that can prevent businesses from encountering missed deadlines, late fees and other payment issues. If your business has an upcoming payroll remittance, business registration, due payment, etc., the CRA offers a list of online options that may assist. Click Here for more information.
May 2016 - IT Consultants - Employee or Self-employed? - If you're a small businesses with technology needs, a common route is to hire an IT consultant to perform the related services for you on an as-needed basis. However, it's important to know what the Canada Revenue Agency (CRA) looks at when determining the consultant's employment status. The CRA offers a detailed article that explains the facts related to IT consultants and the indicators that can help you decide whether a consultant is an employee or a self-employed worker. Click Here for more information.
March 2016 - Completing Slips and Summaries - The CRA offers a reminder that payers who issue income slips, financial information slips, contract payments, must now use their business number instead of their filer identification number. Additionally, if your business is filing more than 50 information slips, you must file your information return electronically via XML or the CRA's Web Forms application. Click Here for more information.
February 2016 - Year-End Taxable Benefits Reporting - If you are providing your employees with taxable benefits (such as employer-provided life insurance), care should be taken at year end when assessing the benefit portion, especially if you have waited until the end of the year to calculate the value of the benefit and the related taxes. If you have performed these calculations periodically for each payroll cycle, the amounts should balance accordingly. If you have waited until year end to do so, the employee could face income tax liabilities when filing their personal income tax return. your business may also incur non-compliance penalties and potential audits from Canada Revenue Agency (CRA) and Revenu Québec (RQ).
December 2015 - Review Year-to-Date (YTD) and Accrued Vacation Amounts - As year-end approaches, it's often deemed the most optimal time for companies to switch payroll providers. If you are making a switch, it's important to ensure that the YTD amounts are entered accurately for all employees who are in the payroll, particularly if they have been paid previously in the year. All payments must add up at the end of the year so that they may be accurately reflected in each employee's T4 and/or T4A. If the YTD amounts are incorrect, it could result in an overpayment of taxes and other source deductions like CPP or EI.
November 2015 - Taxable Employment Income - If an employee has personal and living expenses paid for by the employer, these amounts must be reported as taxable employment income. The exception would be if the employee falls under a specific exemption. Additionally, if an employee is provided free or subsidized housing, a taxable benefit that is equal to the fair market value minus any amount charged must also be charged. See the Benefits and Allowances and pages Board and Lodging pages on the CRA website for more information.
October 2015 - PD7A(TM), Statement of Account for Current Source Deductions - Remember that the CRA is now sending Form PD7A(TM) quarterly instead of monthly. You will have received your first quarterly statement this past July for the second quarter. The CRA sends Form PD7A(TM), Statement of Account for Current Source Deductions, to all employers who make accelerated remittances the month immediately following the end of each quarter. Click Here for more information.
August 2015 - WHMIS Workplace Requirements Portal - With this year's announcement of the changes to Canada's Workplace Hazardous Materials Information System (WHMIS 2015), the CCOHS has published a website to assist Canadians transition from the old WHMIS system to WHMIS 2015. WHMIS.org, Canada’s National WHMIS Portal, provides Canadians with a single point of access to the most current information about WHMIS 2015 from all of the jurisdictions across Canada. The website also contains helpful tools and resources for workers, employers, suppliers and trainers. Click Here for more information.
June 2015 - Payroll "How To" Videos and Recorded Webinars - Did you know that the CRA provides your business access to a series of videos and recorded webinars that offer information about payroll and other CRA programs? The content can be streamed in your internet browser and is also available for free downloading. Click Here for more information.
April 2015 - Businesses Can Use PAD to Pay Taxes Online - Did you know that the CRA allows your business to make tax payments online directly via the pre-authorized debit (PAD) service? This feature is available through My Business Account and allows you to choose the bank account, the amount of the payment, and the specific date or dates for the payments. Click Here for more information.
January 2015 - Hiring an Apprentice - The AJCTC Tax Credit - Did you know that if you hire an "eligible apprentice", you may be able to claim the AJCTC - a non-refundable tax credit equal to 10% of their eligible salaries and wages? The maximum credit an employer can claim is $2,000 per year for each eligible apprentice (any unused credit may be carried back 3 years and carried forward 20 years). Click Here for more information.
November 2014 - Transfer a Misallocated Credit - Did you know that the CRA's My Business Account feature allows you to request the transfer of a misallocated credit within a payroll account, or from a payroll account in cases where you need to correct a misallocated payment? Though these financial transaction requests are processed manually the CRA will promptly forward each request to the appropriate tax centre for action. Click Here for more information.
July 2014 - Change T4 (payroll) and other information returns and slips online - Did you know that the CRA allows you to make changes to an employee's T4 online using their fast, convenient electronic service? The employer, employee, or a representative can file, pay, and access detailed information about an employee's tax accounts - all online. Click Here for more information.
April 2014 - Filing Dates for Self-employed Individuals - As a self-employed individual, the CRA permits you and your spouse or common-law partner until midnight on Monday, June 16, 2014, because June 15, 2014 falls on a Sunday, to file your 2013 income tax and benefit return. they also remind everyone that you must pay any balance owing for 2013 on or before April 30, 2014, regardless of your filing date. Click Here for more information.
February 2014 - Receive your PD7A or PD7A(TM) online - You can choose to receive your PD7A/PD7A(TM), Statement of account for current source deductions online. Once you have registered for online mail through the CRA's Manage online mail service, they will no longer print and mail the PD7A/PD7A(TM) forms to you. Instead, you will receive an email to notify you when there is mail to view in your secure online account. Click Here for more information, or go to E-services for Businesses on the CRA website.
(Click a year to expand the tips for that period)
Use the archive below to view past tips-of-the-month. Keep in mind that the legislation and mandate of some of these tips may have undergone changes over the years. As always, use them as a reference only and consult the official payroll legislation for your Province as needed.
December 2013 - CPP Contribution Rules for Workers aged 60 and over - With last year's changes in the way Canada Pension Plan (CPP) contributions are deducted for your employees aged 60 to 70, it's wise to verify the rules. If you, as the employer, do not deduct or remit CPP contributions to the CRA, you may have to pay your employees share and your share of the CPP contributions. If you do not remit the contributions to the CRA by the due date, you may also be charged penalties and interest. Click Here to learn more.
October 2013 - Correcting Remittance Errors - As a normal part of year end, and throughout the year, you need to ensure that the remittances you have made agree with what CRA says they have received. The CRA issues monthly statements to assist in this regard. However, if you discover that you have made an error in remitting your deductions during the year, have no fear, the CRA will assist. Their website provides a handy guide that shows you how to correct oversights and errors whether you have under- remitted, over-remitted or even had a missaplied payment. Click Here to learn more.
August 2013 - Enhancements to the Hiring Credit for Small Business (HCSB) - Did you know that the CRA has proposed enhancements to the Hiring Credit for Small Business (HCSB)? Intended to stimulate new employment and support small businesses, this credit gives small businesses relief from the employer's share of employment insurance (EI) premiums paid in a year. It does so by crediting up to $1,000 on the payroll account, based on the increase in an employer's EI premiums paid in one year over those paid in the year before. Click Here to view the proposed expansions and extensions for 2013.
June 2013 - Direct deposit is now available for payroll accounts - Did you know that direct deposit is now available for payroll accounts? The the CRA now allows employers to sign up for direct deposit using the new Form RC366, Direct Deposit Request - GST/HST, Payroll and/or Corporation Income Tax. The form is available on the CRA website in either a printable PDF or a PDF that is fillable/saveable online. Click Here for more information.
March 2013 - PD7A, Statement of Account for Current Source Deductions - Starting in April 2013, the CRA will stop mailing paper Forms PD7A, Statements of Account for Current Source Deductions to you if you have paid your previous remittances electronically for the past six months or more. Your payroll obligations to withhold, remit, and file will not change but remittances not received by their due date may be subject to penalties.Click Here for more information.
November 2012 - Employing a Caregiver, Baby-sitter or Domestic Worker - DIf you hire a caregiver, baby-sitter, or domestic worker, you may be considered to be the employer of that person. If you are hiring a live-in caregiver or domestic worker, you may be providing a taxable benefit such as board and lodging. As an employer, you have responsibilities in the employment relationship between you and the person. If you are not sure whether you are an employer, Click Here to view the CRA's Guide RC4110, Employee or Self-Employed?
September 2012 - Video series - Payroll Information for a New Small Business - Did you know that the CRA provides a video series designed to assist small businesses with setting up and maintaining a payroll? A complete range of topics are included from information on opening a payroll account with the CRA, paying and hiring new employees, employee benefits right through to deducting Canada Pension Plan contributions, employment insurance premiums and more. The videos are streamable on the web and also available as a download with transcript. Click Here for more information.
August 2012 - Extension of EI Regular Benefits for Long-Tenured Workers - Did you know that EI eligible long-tenured workers may be eligible for additional benefits if they have contributed to the Employment Insurance (EI) program for a significant period of time and have previously made limited use of EI regular benefits? The Service Canada website offers information on eligibility and details on applying for extended benefits. Click Here for more information.
June 2012 - Employing a Caregiver, Baby-sitter or Domestic Worker - If you hire a caregiver, baby-sitter, or domestic worker, you may be considered to be the employer of that person. If you are hiring a live-in caregiver or domestic worker, you may be providing a taxable benefit such as board and lodging. As an employer, you have responsibilities in the employment relationship between you and the person. If you are unsure if you are considered to be an employer, the CRA provides clear instruction on the topic. Click Here for more information.
March 2012 - Tax Savings for Tradespersons - If you were a tradesperson in 2011, you may be able to claim a deduction for the cost of eligible tools (to a maximum of $500). Further, you can claim certain expenses you paid to earn employment income as a deduction, but only if your employment contract required you to pay for your own expenses, and either you did not receive an allowance for them or the allowance you received is included in your income. Click Here for more information.
February 2012 - Enhanced Services for CRA's Web Forms - Business filers now have even more options when using the CRA's Web Forms service. Starting in January 2012, you can electronically file an information return of up to fifty slips in a single submission using the Canada Revenue Agency's (CRA) Web Forms application. The information return types that can be submitted include T3, T4, T4A, T4A-NR, T4E, T4RIF, T4RSP, T5, T5007, T5008, T5018 and NR4. Click Here for more information.
November 2011 - Online Calculator for Automobile Benefits - The CRA website offers the Automobile Benefits Online Calculator. This handy tool allows you to calculate the estimated automobile benefit for withholding purposes based on the information you provide. Use the calculator to easily determine the automobile benefit amount you should prorate to the employee's pay periods. Click Here for more information.
September 2011 - Hiring Credit for Small Business - Did you know the the Canada Revenu Agency is offering a hiring credit for small business of up to $1,000 against an employers increase in its 2011 EI premiums over those paid in 2010? Eligible businesses are those whose total employer's EI premiums paid for 2010 was $10,000 or less and whose total premiums increased in 2011 is eligible for a credit. Click Here for more information.
July 2011 - Report on Hirings Program - Service Canada offers he Report on Hirings (ROH) program, a voluntary verification program that allows employers to submit the Social Insurance Number and the first day worked for newly hired or recalled employees to Service Canada each month using a secure online application. By participating in ROH, the Request for Payroll Information forms you receive from them will ask for more current payroll information, which makes them easier to complete. Click Here for more information.
June 2011 - CRA Form and Publication Updates - Did you know that the CRA website lists forms and publications that have been added to their site within the last 30 days? This is particularly useful for payroll bureaus and any business that needs to keep abreast of changing CRA documentation. Each form and publication is provided in a variety of formats, though the current additions are sometimes offered in PDF only to begin. Click Here for more information.
April 2011 - Aboriginal Job Centre Online - The Aboriginal Job Centre (AJC) provides a free online platform for all employers - including Aboriginal organizations - to publish job opportunities that are targeted towards the Aboriginal workforce. It also allows Aboriginal job seekers to search for employment opportunities, whether it is by location, job sector or keywords. Postings from across Canada are added to the site daily. Click Here for more information.
January 2011 - Business Registration Online (BRO) - The Canada Revenue Agency provides Business Registration Online -- a one stop, online, self-serve application that allows you to register for a Business Number, as well as for four program accounts: Corporation income tax, GST/HST, Payroll and Import/Export. You can also register or apply for Ontario, Nova Scotia and British Columbia program accounts. Click Here for more information.
October 2010 - Online Tool for Gifts and Awards - The Canada Revenue Agency has made available an online tool to assist employers in determining if a gift, award or long-service award is a taxable benefit to the employee. To use the handy tool, simply visit the CRA website (see link below) and answer a few questions about each gift or award to determine whether there is a taxable benefit. Click Here for more information.
August 2010 - CRA Videocast Series - Did you know that the Canada Revenue Agency (CRA) provides a series of videocasts to assist business owners and taxpayers with business and tax-related topics? Current videocast offerings include Payroll, Corporation Income Tax, Tradespersons Tool Deductions, Working Income Tax Benefit and many more. Click Here for more information.
June 2010 - Voluntary Disclosures Program - The CRA provides a useful tool for business owners and taxpayers called The Voluntary Disclosures Program (VDP). This program allows taxpayers to come forward and correct inaccurate or incomplete information or to disclose information they have not reported during previous dealings with the CRA, without penalty or prosecution. They provide a Taxpayer Agreement form that you can complete and submit yourself, or that you can have submitted by an authorized representative on your behalf. Click Here for more information.
March 2010 - New Employment Insurance Web Videos - Service Canada has announced the launch of the new Employment Insurance (EI) self-help Web videos now available on the Service Canada Web site. Intended to complement the existing information available on the website, the new videos cover topics such as setting up your own My Service Canada Account, Applying for Employment Insurance,EI Rights and Responsibilities and EI Special Benefits to name just a few. Click Here for more information.
January 2010 - Advancing the Inclusion of People with Disabilities - If your organization is interested in the hiring a disabled employee, HRSDC has released the federal disability report entitled "Advancing the Inclusion of People with Disabilities".This report report looks at the experiences of Canadians with disabilities and notes changes over time. Of particular interest to prospective employers is Chapter 3 - Employment which examines employment among working-age adults with disabilities. Click Here for more information.
December 2009 - My Payment - My Payment is a new payment option that allows individuals and businesses to make payments online, using the Canada Revenue Agencys Web site, from an account at a participating Canadian financial institution. Click Here for more information.
October 2009 - Tuition Fees, Scholarships, and Bursaries - The CRA states that may provide an employee, or former employee, with a scholarship or bursary on the condition that the employee returns to employment with you upon completion of the course. In this situation, the amount of the scholarship or bursary is considered to be employment income to the employee or former employee. Click Here for more information.
August 2009 - Apprenticeship Incentive Grant - Did you know that the Governmenr of Canada offers the Apprenticeship Incentive Grant (AIG), a taxable cash grant available to registered apprentices once they have successfully completed their first or second year/level (or equivalent) of an apprenticeship program in one of the Red Seal trades? Click Here for more information.
May 2009 - Non-Resident TeleReply - As of April 6, 2009 Canadian payers, agents or their authorized representatives can call Non-Resident TeleReply at 1-866-971-4644. Non-Resident TeleReply is a fast, easy and secure telephone service that allows you to report a nil remittance of non-resident withholding tax on your account. Click Here for more information.
March 2009 - Guide for Canadian Small Businesses - If you are planning on starting a small business, the Canada Business website can assist with The Guide for Canadian Small Businesses. The guide provides useful information on a broad range of issues, such as how to set up a business, the GST/HST, excise taxes and duties, payroll deductions, and income tax. The guide is targeted primarily at new and prospective small businesses and is available for viewing anytime. Click Here for more information.
December 2008 - Too much mail from the Canada Revenue Agency? - Did you know that you can tell the Canada Revenue Agency electronically to stop or restart the mailing of certain communication items to your place of business? If you prefer not to receive your statement of arrears, statement of interest, statement of interim payments, or remittance envelope, use the CRA's Online Requests for Business service to let them know. Click Here for more information.
October 2008 - Employer Sponsored Training - Did you know that Service Canada provides financial assistance to eligible employers to support approved training activities for employees who have been identified as facing a loss of their employment? The Employer Sponsored Training (EST) program's objective is to assist employees to acquire the skills that will allow them to remain employed, or, if they are laid off, that will shorten the period of their unemployment. Click Here for more information.
July 2008 - Corporation Internet Filing Service - The CRA offers an method of filing corporation income tax returns electronically from your desktop computer. The benefits of using the Corporation Internet Filing service include receiving an immediate confirmation of receipt and faster processing and refunds. The CRA encourages all to join in creating a sustainable environmental footprint by reducing paper consumption. Click Here for more information.
May 2008 - View Account Transactions for Payroll - Did you know that the CRA has updated a number of useful services included in their My Business Account service? One of the recent changes is the ability for businesses to view financial transactions that are currently captured on the PD7A. This enhancement provides the option to ensure that a payment has been received, view if a return has been filed and posted, and also to view any assessments that may have been charged. Click Here for more information.
March 2008 - CRA Offers New Electronic Tool to Help Businesses - The CRA now is offering a CD-ROM that showcases electronic services for businesses and self-employed individuals that are available on the CRA website. The CD-ROM contains a wealth of information from starting a business, to keeping books and records, to filing options and the due dates for various returns and payments. Click Here for more information.
January 2008 - Payroll Deductions Online Calculator - The CRA website provides the Payroll Deductions Online Calculator (PDOC), an interactive web application that calculates payroll deductions for all pay periods, provinces (except for Quebec), and territories. The PDOC applies the exact taxable income amount to determine the tax deductions, therefore calculations are more precise than those produced by the Tables on Diskette (TOD). Click Here for more information.
November 2007 - Represent a Client - The CRA's Represent a Client service provides authorized representatives with secure and controlled online access to their individual or business clients' tax and payroll information. Anyone wishing to gain online access to this information needs to register as a representative with the service. A business (e.g., professional tax services) may also register with this service to be a representative of a taxpayer or a business. Online access to tax information only becomes effective once a registered representative is authorized by their client, employer, family member, or friend.. Click Here for more information.
October 2007 - Insurability of Barbers and Hairdressers - The CRA restricts the insurability of employment of workers employed in barbering or hairdressing establishments, who are not your employees, to barbers and hairdressers only. Other classes of workers, such as manicurists, beauticians, and massage therapists, are now excluded under this special rule. Click Here for more information.
July 2007 - Targeted Wage Subsidy Program - The Targeted Wage Subsidy Program enables employers to hire individuals who face barriers to employment by offering temporary wage subsidies and assists individuals experiencing difficulty in finding work to benefit from on-the-job work experience. Click Here for more information.
June 2007 - Canada Summer Jobs Program - Service Canada offers the Canada Summer Jobs program, an initiative of the Summer Work Experience program. It provides wage subsidies to help Canadian employers of not-for-profit, public sector, and smaller private sector organizations with 50 or fewer employees create career-related summer jobs for students between the ages of 15 and 30 at the start of employment. Click Here for more information.
April 2007 - Job Bank for Employers - If you are an employer looking to post an employment opportunity, look no further than Service Canada's www.jobbank.gc.ca. Job Bank is fast, easy and free of charge. By advertising in Job Bank, your posting will be seen by thousands of job seekers across Canada. Once you have advertised your job in Job Bank simply click the "Perform Match" button and receive a list of qualified candidates who have the skill set matching your job advertisement. Click Here for more information.
March 2007 - CRA Offers New Electronic Tool to Help Businesses - The CRA now is offering a CD-ROM that showcases electronic services for businesses and self-employed individuals that are available on the CRA website. The CD-ROM contains a wealth of information from starting a business, to keeping books and records, to filing options and the due dates for various returns and payments. Click Here for more information.
January 2007 - Automobile Benefits On-line Calculator - The CRA offers an on-line calculator (formerly part of the WinTOD program) to help employers determine the automobile benefit amount they should prorate to the employee's pay periods. This amount can then be added to the employee’s salary and other benefits/allowances, if applicable, to determine the total amount subject to Canada Pension Plan (CPP) / Quebec Pension Plan (QPP) contributions and income tax. Click Here for more information.
November 2006 - My Business Account - The Canada Revenue Agency now offers My Business Account, a way for business owners (including directors and officers of corporations) to access corporation income taxes, excise taxes, excise duties and other levies accounts online. This includes making online requests for financial transactions to be taken on a CRA account, filing corporation income tax returns and requesting CPP/EI rulings online. Click Here for more information.
August 2006 - HRSDC's Workplace Bulletin - The Workplace Bulletin, issued by the Workplace Information Directorate, Labour Program, Human Resources and Social Development Canada, is available twice a month. This publication keeps you apprised of ongoing developments and provides access to timely customized information on industrial relations and collective bargaining in Canada. You can be updated on topics such as: negotiated wage data, benefits, working conditions, work stoppages, labour organizations, union membership, innovative workplace practices, labour standards, occupational safety and health, labour management partnerships, employment equity, and international and intergovernmental labour affairs. Click Here for more about this publication.
May 2006 - Taxation Seminars for Small Business - Did you know that the The Canada Revenue Agency (CRA) provides seminars, as well as some online publications, to assist small businesses in learning about government services, GST/HST, and income tax? These free seminars are offered in most provinces and are often combined with seminars on provincial sales tax, payroll, and other topics. Visit the CRA Events and Seminars webpage to find out more about seminars in your area.
March 2006 - Pay Taxes the Electronic Way - The CRA offers a quick and convenient way to pay your personal or business income tax -- electronically, through your financial institution's telephone and Internet banking services. Depending on the services provided by your institution, you may be allowed to schedule post dated payments, and you can also find out how to file your GST/HST return or remit any balance owing through the Canada Revenue Agency's GST/HST-EDI service. Visit www.cra.gc.ca/electronicpayments to find out more about these services, or contact your bank or other financial institution.
February 2006 - T4A Segment Filing - You no longer need the T4 Segment or T4A Segment when filing less than 500 slips on paper. However, if you choose to use the Segment, the CRA requests that you split your slips into bundles of 200 slips for T4s and 300 slips for T4As (100 sheets), and include a Segment (available in electronic format only) on the top of each bundle. If you file 500 or more slips, you must file on magnetic media. If you file on magnetic media or by Internet, the CRA requests that you do not send them a paper copy of your return.
January 2006 - Ordering Updated CRA Forms and Publications - The Canada Revenue Agency allows you to download and print copies of relevant forms and publications for payroll, HR and related use. They also allow you to order printed copies online (via an electronic order form) or by telephone. Click Here to visit their Internet site where you can learn more about ordering options and to view the latest updates for 2006.
November 2005 - Service Canada Website - A New website, entitled "Service Canada", was official opened in communities across the country on September 14th, 2005. Service Canada integrates services from a number of federal departments to form an easy-to-access service delivery network. These services touch all aspects of the lives of Canadians: from parental and pension benefits, to matching employers with job seekers, applying for a passport and obtaining a Social Insurance Number. Click Here for more information.
October 2005 - Online Requests for Business - This CRA service allows business clients to electronically ask for certain financial actions to be processed on an account. Upon request, each will be promptly forwarded to the appropriate office for action. At present, the service also accepts requests for the following communication based items: statements, additional remittance vouchers, reproductions of previously issued communication items and account communication instructions. Click Here for more information.
September 2005 - Essential Skills and Workplace Literacy Initiative - The Essential Skills and Workplace Literacy Initiative has a website that will help to ensure Canadians have the right skills for changing work and life demands. Canadians can use this site to search close to 200 occupational profiles and to help them learn more about the skills needed for a given job. Click Here for more information.
July 2005 - View and Update Personal CPP Information - The CRA provides an online service that allows employees to to view and update their Canada Pension Plan (CPP) and Old Age Security (OAS) address, telephone number and payment destination. When an employee moves, they must be be sure to also inform the Canada Revenue Agency of their new address using the online service. Click Here for more information.
June 2005 - Canada Pension Plan (CPP) Statement of Contributions - Did you know that the CRA provides an online service that allows you to view and print your Canada Pension Plan (CPP) Statement of Contributions? As long as you meet the basic requirements, you can view your history of earnings, contributions to the CPP as well as estimates for any CPP benefits you may be eligible to receive. Click Here for more information.
May 2005 - Statement of Account for Current Source Deductions Online - The CRA has announced the E-PD7A online service that allows you to receive and view your Statement of Account for Current Source Deductions. E-PD7A replaces the paper version of the PD7A and the PD7A(TM). This online service is secure, convenient, and environmentally friendly. It is cheaper than sending paper, it ends errors caused by re-keying data, and it provides quicker turnaround. Click Here for more information.
April 2005 - Job Creation Partnerships - HRSDC's Job Creation Partnerships program supports the creation of meaningful employment opportunities by linking the needs of unemployed workers with local economic development. Through the collaborative efforts in a JCP project, both the community and local economy benefit. Click Here for more information.
March 2005 - Employer-Paid Membership Fees - Employer-paid (or reimbursed) professional membership fees are not taxable federally if the employer is the "primary beneficiary" of the payment, even if the membership is a condition of employment. If it is not a condition of employment, it is up to the employer to determine who is the primary beneficiary (if the CRA requests it, the employer must be able to support its position). Exceptions may apply if the employer is the one who primarily benefits from the professional membership fees payment.
February 2005 - Year-End Reporting - Most payroll programs allow you to print your T4s as often as necessary. Test print them on plain paper to verify accuracy and alignment, and take time to thoroughly test your printer before you produce your final T4s for the year. Your program may also allow you to run special year-end reports to identify corrections, adjustments, and manual cheques from previous payrolls before the last payroll of the year.
January 2005 - TOD Updates for 2005 - The latest version of the CRA's Tables on Diskette (TOD) program includes the updated annual maximum employee EI premium of $760.50 along with the various provincial/territorial changes. TOD is a stand-alone computer program that calculates the Canada Pension Plan (CPP); Employment Insurance (EI); and federal, provincial (except Quebec) and territorial tax deductions for all pay periods.
December 2004 - Donations to Registered Charities - If you make donations to registered charities, you can claim them as a non-refundable tax credit on your tax return. Total donations of up to $200 will give you a federal tax credit of 16% of the donation. Donations that are more than $200 will give you a federal tax credit of 29% of the donation amount that exceeds $200. The provincial and territorial amounts may vary. Married couples or common-law partners can pool their donations and claim them on one return. Donations need not be claimed in the year they are made but can be carried forward for up to five years.
November 2004 - Newly Employed in Canada - If you employ a newcomer to Canada, you should make them aware that they may be entitled to credit payments such as the Canada Child Tax Benefit (CCTB) or the goods and services tax/harmonized sales tax (GST/HST) credit. To receive these credits, they need to report their income from all sources, employment or otherwise, from both inside and outside Canada.
October 2004 - SIN Starting with the Number Nine - Social Insurance Numbers that begin with the number nine are issued, for work purposes, to individuals who are not Canadian citizens or permanent residents. The SIN is only valid for the length of their stay in Canada as determined by Citizenship and Immigration Canada. These workers are required to have an employment contract and a valid working permit that allows them to work for that employer (hiring such a person who does not have an employment form duly filled out is an an offence under the Canada Immigration Act). All SINs beginning with a nine will have an expiry date.
September 2004 - Payroll Remittances and ATMs - If you use an automated teller machine when sending in your payments to the CRA, remember to allow time for the financial institution to process the payment. Although the institution will debit your account at the time you use the ATM, the ATM receipt is not considered proof of payment by the due date.
August 2004 - Information slips available only in Laser Format - The CRA reminds information slip users that T4, T4A, T4RIF, T4RSP, NR4, T5, T5007 and T5008 slips are only available in flat (laser) format. As of 2004, form T2202A (Tuition and Education Amounts Certificate) can also be ordfered through this process. This form is useful if you have employees who paid tuition fees to certified institutions that provide courses for occupational training.
July 2004 - Elimination of carbon-loaded information slip - The CRA is in the last phase of its two-year plan to eliminate carbon-loaded slips. 2004 is the last year that carbon-loaded slips will be provided, in limited quantities, to small employers. If you still need to use the carbon-loaded slips, the CRA encourages you to call 1-800-959-2221 to place your order.
June 2004 - ROE reason code for Compassionate Care Leave - If you are using ROE on the Web, the CRA has stated that code "Z" should be used for Compassionate Care Leave. Paper ROEs will be adjusted to include reason code "Z" the next time ROE forms are printed. In the meantime, if you are using paper ROEs, use reason code "K" (other) and write "compassionate care leave" in the "comments section" at Box 18.
May 2004 - ROE on the Web - The HRSDC now offers the ROE Web feature that enables Canadian employers to create, submit and print ROE by using Internet technology. If you use specialized payroll software, your software vendor will let you know when a solution is available that will incorporate ROE Web into their software products. The current release of GrandMaster Suite (v3.90.09) allows you to create an ROE web file for use with the HRSDC ROE Web service.
April 2004 - Vacation Pay Earnings - Earnings subject to vacation pay differ according to the labour standards of the province of territory. Banking of overtime is legislated in Alberta, British Columbia, Manitoba and the Yukon. In other jurisdictions, you are required to obtain authorization from the Director of Employment/Labour Standards. Remember to verify these earnings according to the labour standards for each employee's province or territory of employment.
March 2004 - Deductions at Source - On the TD1 form, an individual can request to have more tax deducted from their pay. They simply have to indicate the additional tax they want to have deducted from each remuneration. Conversely, if an employee wants a reduction in tax, they should complete Form T1213, Request to Reduce Tax Deductions at Source (available from your employer or the CRA).
February 2004 - Filing T4 Returns - Employers have to file their T4 information return by the last day of February following the calendar year to which the information return applies, (for example, you have to file the 2003 T4 or T4A Information Return by the last day of February 2004). If the last day of February is a Saturday, Sunday, or a statutory holiday, your information return is due the next business day. You have to give two copies of the slips to your employees by the last day of February following the calendar year to which the slips apply.
January 2004 - New Human Resources Management Website - The Government of Canada has provided a new website entitled Human Resources Management. It is is designed to help small to medium sized businesses find government and non-government human resources management information. Click Here to learn more.
December 2003 - New Labour Market Website - The Labour Market Information Web Site has been enhanced and is now available to answer your questions about jobs, skills and worker availability in local areas across Canada. The site's information is provided by a cross-Canada team of professionals who work mostly in local Human Resources Development Canada (HRDC) offices. Click Here to learn more about this site.
November 2003 - Electronic Mailing List – Magnetic Media - The CCRA provides a free e-mail service that notifies employers who file returns using magnetic media. The e-mail notification includes new information that appears on the Magnetic Media section of the CCRA website including: Legislative changes affecting the filing of returns, New technical specifications for filing returns, and Magnetic media and filing news updates. Click Here to learn more about this free service.
October 2003 - Applying for EI Benefits On-Line - The HRDC offers an on-line EI application for employees who need to apply for EI benefits. The website is available 24 hours a day, 7 days a week and allows employees to apply at their own convenience from any computer that has access to the World Wide Web. Once they have completed the application, it is transmitted electronically to their local HRDC office for processing. Click Here for more information.
August/September 2003 - Be Creative when Preparing for Vacation Downtime - A proper holiday forecasting plan is essential when managing for summer holidays. While flexibility is understood, forecasting is an essential ingredient for successful, proactive resource planning. If people in your organization are tardy about completing forecast sheets in advance, be creative in your approach. Create a forecast log that includes destination and activity, and offer a prize for the best, or most creative vacation plan. You might also request that the winner make a semi-official presentation about the trip for team members upon his return to work. This will build presentation skills and foster morale simultaneously.
July 2003 - Hire a Young Worker through Employer Link - Designed for business owners, managers and human resource professionals, Employer Link is a guide to Government of Canada programs and services to help employers hire youth. Developed through Canada’s Youth Employment Strategy, Employer Link is the perfect tool to help you hire a young worker. Click Here to learn more about this service.
June 2003 - CPP Statement of Contributions Online Request - If your employees contribute to the Canada Pension Plan (CPP), they can now request online that an official copy of their Statement of Contributions be mailed to them. The statement provides them with a report of their contributions to the CPP. Click Here to learn more about this service.
May 2003 - Vacation Pay and Statutory Holidays - If an employees vacation falls on one or more statutory holidays, the vacation may be extended by one day for each such holiday, and the employer must pay the employee the wages to which he or she is entitled for those statutory holidays, in addition to the vacation pay.
April 2003 - Electronic Mailing List – Payroll Deductions - Did you know that the CCRA provides a free electronic service that notifies you immediately of any changes to the payroll deductions rules and regulations? Businesses are invited to subscribe, free of charge, to this mailing list to get quick and easy access to recently announced information and new publications. The list also includes any changes regarding Tables on Diskette, Payroll Deductions Formulas for Computer Programs, Nova Scotia Workers' Compensation Board (WCB) awards, events and business seminars and other matters of interest to employers. Click Here to learn more about this free service.
March 2003 - Meal and Entertainment Expenses Search Map - If you employ people who work in multiple provinces, the CCRA has provided a handy searchable map that will help you calculate the amount to deduct for entertainment and meal expenses. This can be quite useful since the deduction amount will vary depending on where the expense was incurred. Click Here to learn more about this useful feature.
February 2003 - Magnetic Media and Multiple Accounts Filers - Starting with the T4032 January 1, 2003 edition, the CCRA will no longer automatically mail the paper copy of this publication to businesses that file their T4 information returns on Magnetic media or use multiple employer accounts. If this affects your business, you can obtain your copy using any of the following methods; Order or download and print a paper copy of the Payroll Deductions Tables and the Tables On Diskette (TOD) from the CCRA Web site at www.ccra.gc.ca/payroll; Order a hard copy of TOD and a printed version of the T4032 publications by calling 1-800-959-2221. Generally, the electronic version of the T4032 publications is available on the CCRA Web site in early June (if applicable) and early December. You are able to download and print them at your convenience once they are posted on the Web site. The printed copies are usually available three weeks later.
January 2003 - Forms for Commission-Earning Employees - If you have an employee who is remunerated by commission and claiming expenses, they will need to complete a federal TD1 form, a provincial or territorial TD1 form, and Form TD1X, Statement of Commission Income and Expenses for Payroll Tax Deductions. Taxable income is the same for federal, provincial, and territorial tax calculation purposes. There is no provincial or territorial Form TD1X to complete.
December 2002 - Avoid Costly Penalties by Remitting Early - Employers who do not comply with the rules face various penalties and interest charges. The CCRA applies a 10% or 20% penalty if you send them your remittance after the due date or if you did not deduct the required amount of income tax, CPP, or EI premiums or you withheld these amounts without remitting them. Further, If you did not deduct for CPP or EI, you will have to pay your employee's share in addition to your share. The penalty for not filing information returns by the end of February of the following calendar year is $25 a day for each slip or summary. There is a minimum penalty of $100 and a maximum penalty of $2,500. These information returns are the T4, T4A, and T4F Supplementary slips and the related summaries.
November 2002 - HRDC Report on Hirings Program - Human Resources Development Canada (HRDC) has developed the Report on Hirings Program to prevent, deter and detect abuse of the EI program. Under the program, employers inform HRDC of the first day worked of newly hired or rehired employees. You may submit in three ways: a) Manual Report on Hirings - Employers manually complete a Hiring Detail form sent to them each month. The form is then returned to our regional Data Entry Centre whose address is indicated on a prepaid self-addressed envelope b) Automated Report on Hirings - Employers give us the data on a computer printout c) Centralized Payroll System - Employers provide data on a computer tape. This method is for large employers and Payroll Service Bureaus. HRDC will only extract information on employees who are, or have been claimants, and for whom there appears to be an over-payment. Information collected through the Report on Hirings (ROH) program can be used in the administration of HRDC's employment and benefit programs. Click Here for more information.
October 2002 - Human Resources Development Canada's Job Bank - Did you know that Human Resources Development Canada offers a website for employers who wish to post available jobs in the HRDC Job Bank? This Internet job advertisement service is offered free of charge and is publicly accessible by anyone with an Internet connection. The site provides a secure, easy method of posting multiple job listings and offers an excellent opportunity for employers to advertise available job listings in a cost-efficient manner. Click Here For more information.
September 2002 - Canadian Training Solutions for Workplace Learning - This site has been developed for employers who want to learn more about training. It contains a section to help employers understand the benefits of training and explore its many applications. The site provides access to one of the largest public databases of training providers in Canada with an extensive range of training suppliers to meet the needs of all sizes of companies. Discover how using new learning technologies to train your employees can improve performance. Click Here For more information.
August 2002 - How to order Record of Employment (ROE) forms - It is not possible to download a ROE form online. Whether you are a Canadian business or a non-Canadian business operating in Canada, you need to contact your nearest HRDC office. When ordering ROEs you require the following: - your business number (employer's number) issued by Canada Customs and Revenue Agency (CCRA), the name, telephone number and address of your business. If you do not have such a number, you will have to request it from CCRA before you place an order. If you plan on ordering and picking up your ROEs in person, you will also be asked to provide photo identification.
July 2002 - Remitting Payroll Deductions Quarterly - Beginning in 2002, the CCRA no longer send letters to employers to let them know they are eligible to continue to remit quarterly for 2003. If you currently remit quarterly, you can continue to do so unless the CCRA informs you that you are no longer eligible. If you are a new eligible employer, you do not have to apply to remit quarterly. The CCRA will let you know if you are eligible and provide you with more details. If you would like more information about quarterly remitting, please view the Remitting Payroll Deductions guide available on the CCRAs website.
June 2002 - Promoting Work Life Balance - A website has been created to help employers, unions, managers and human resources practitioners and professionals find the most pertinent and recent information on work-life balance. The site contains references and links to a large number of reports, articles and papers on a variety of subjects related to work-life balance. It also provides descriptions and examples of policies, programs and practices for such topics as Workplace Flexibility, Leave and Benefits, Reduction of Working Time, Work-life Stress Management. Visit http://labour-travail.hrdc-drhc.gc.ca/worklife for more information.
May 2002 - Changing Your Business Address - If your business is moving, you should be aware that the CCRA does not accept business address changes via the Internet. If using regular Mail or Fax, you should forward your new address to the appropriate tax centre for your business. If using the telephone, you can contact the CCRA Business Enquiries line at 1-800-959-5525. If you use the CCRA's direct deposit service and you have a new account at a financial institution, you will also need inform them of your new account. Note that the CCRA will not forward your new information to other government departments (you must do so yourself). No matter which method you choose to notify the CCRA, remember to include the following items: your full business name, Business Number, signature of authorized contact person, new business and/or mailing address, as well as new telephone number if applicable. The effective date should also be included.
April 2002 - Business Registration On-line - The Canada Customs and Revenue Agency (CCRA) has made business registration simpler and faster with the introduction of the www.businessregistration.gc.ca web site. This site is tailor-made for small and medium-sized businesses, and offers information and self-help registration in one convenient location. Canadian businesses now have the opportunity, for the first time nationally, to register for CCRA, Nova Scotia and Ontario business programs during a single Internet session. By visiting the web site, businesses can register for several CCRA programs including the GST/HST Goods and Services Tax/Harmonized Sales Tax and the Payroll deductions program. For more information, please visit: http://www.businessregistration.gc.ca.
March 2002 - Benefit Information on Canada Benefits Website - The new Canada Benefits Website provides Canadians with access to government-wide information about financial assistance and entitlements programs for individuals. In addition to Employment Insurance information you can also find out about other government financial benefit programs - maternity benefits, tax credits, programs for homeowners, student loans and grants, public pensions, services and benefits for veterans and more. Click Here for more information.
February 2002 - Software Overrides at Year-end - If you employ an in-house payroll processing program, you may have employees with amounts that do not balance come year-end. Most payroll software programs provide an override facility that allows you to manually "key-in" an new amount as required. When you perform such an override, you are replacing a calculated figure with a manual amount (since most payroll programs calculate data based on set rate tables and static formulas), As always, it is good practice to verify your data entry before overriding these calculated amounts.
January 2002 - Keeping Employee Files Up-to-Date - Ensure that your employee files are kept up-to-date by completing the latest provincial TD1 forms for 2002. These forms are available on the CCRA website at http://www.ccra-adrc.gc.ca/formspubs/forms/td1-e.html. You must produce a completed and up-to-date TD1 for each employee if requested by CCRA.
December 2001 - Continuous Forms to be Replaced - 2002 is the final year that the CCRA will support continuous feed forms for T4s. When filing in 2003 (for the 2002 tax year), you will only be able to use forms that are laser printer compatible (i.e. single-sheet feed). If your company is still using impact printers (dot matrix) with continuous feed forms, you will need to upgrade your system before that time.
November 2001 - Preparing for Year-End - As year-end approaches, many companies will be preparing for their final payroll runs of the year. One thing you can do to help this run as smoothly as possible is to have an adequate supply of T4 forms available (along with any other forms you require). You will need several copies per employee (two for the employee, one for your records and one for the CCRA). Stock up on the forms early to avoid the rush that will occur in November.
October 2001 - Filing on Magnetic Media - If your company is thinking of moving to magnetic media to submit year-end information, you will need to apply for a Transmitter Number as well as create a test file for approval by the CCRA. The purpose of the test file is to make sure that the data is in a format that can be read accurately. For best results, submit your test file based on the newest specification guides (available on the CCRA website). The verification of test files starts in the first week of October and is completed by mid January of each year. Click Here for more information.
September 2001 - Electronic Reply Service for Payroll Deductions - TeleReply is a new electronic reply service that allows employers to notify the CCRA by phone if they have no payroll deductions remittance to make during a remittance period. TeleReply is a free service that is available every day except Sundays and statutory holidays. Click Here for more information.
August 2001 - Reducing Your EI Premium Rate - If you are an employer who provides your employees with disability coverage for short-term illness or injury, you may be eligible for a reduction in your EI premium rate. The Premium Reduction Program allows employers to pay Employment Insurance (EI) premiums at a reduced rate if their employees are covered by a short-term disability plan that meets certain requirements set by Human Resources Development Canada (HRDC). Click Here for more information.
July 2001 - Tables on Diskette for Windows (WinTOD) - Canada Customs and Revenue Agency (CCRA) offers WinTOD, Tables on Diskette for Windows. Available free of charge, WinTOD is a stand-alone computer program that the CCRA issues twice a year, as tax changes occur, to calculate payroll deductions -- Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and tax -- by pay period. Click Here for more information.
June 2001 - Produce ROE's In-House - HRDC has developed a software application that enables employers to produce ROEs on a standard laser printer. The ROE Laser Print Project provides software that can be distributed free of charge to any employer who wishes to produce ROEs in-house. The software operates on computers that are running Windows 95 (or greater). The format of the laser printed ROE is exactly the same as the format of the current 3 part pre-printed form. Click Here for more information.
May 2001 - TONI Harmonized Rates - Under the TONI system, the federal and provincial income tax rates will be harmonized for the lump sum rates used for non-periodic and lump sum payments. Therefore there will be no changes to the rates themselves.
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