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Happy Holidays from all of us at Contren



Christmas 2004 E-NOTES

 

To print the Christmas 2004 E-notes click here:                                       

STATUTORY (PUBLIC) HOLIDAYS


A reminder that the following are public holidays in Ontario, Christmas Day, Boxing Day and New Years Day.

 

If your employee works any public holiday they are entitled to either 2.5 times their regular pay or 1.5 times their regular pay plus a day off with pay.

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As mentioned previously all employees are entitled to public holiday pay immediately upon hiring. There is no longer a three month exemption upon hiring. This means part time seasonal workers will be paid public holiday pay based on the formula (daily hours worked preceding four weeks/20).


If any public holiday falls on a non working day, which this year could be all three public holidays, qualified employees can either take a substitute work day off with pay or, if agreed to in writing, they can receive public holiday pay for the public holiday with no substitute day off.


A simple way to avoid paying public holiday pay to new part time seasonal employees is to terminate the employee on Dec 24 and rehire the employee, if required, Dec 27. Legally you would be within your rights as an employer and could save yourself the public holiday pay. As mentioned previously you would be viewed as the Grinch to your remaining employees but you would be following the Employment Standards Act.


PAYROLL INFORMATION

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For calendar 2005 the Federal personal exemption amount has increased to $8,148 and the Provincial personal exemption amount has increased to $8,196. Please adjust your payroll ledger information accordingly.


For calendar 2005 the CPP deduction rate has remained constant at 4.95% ($1,861.20 maximum deduction) and the maximum earned income has increased to $41,100.


For calendar 2005 the EI rate has decreased to 1.95% ($760.50 maximum deduction) while the maximum earned income has remained constant at $39,000.


Note that the Ontario health premium, which came into effect July 1, 2004 at one half the yearly assessment, will be fully applied in calendar 2005. This premium (tax) may result in the reduction of some of your employees net pay on their first paycheque of calendar 2005.

 

 

OFFICE CHRISTMAS HOURS

 

Once again, in the spirit of the Christmas season, our office will be closed to allow our staff to enjoy time with their families.images/officehours.gif (1563 bytes) The office will be closed from the afternoon of December 23, 2004 to the morning of December 28, 2004 and will also be closed from the afternoon of December 30, 2004 to the morning of January 3, 2005.


We will be checking our messages on a timely basis throughout the Christmas holidays and will respond where required.


SIMPLY ACCOUNTING

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Simply Accounting has once again updated their package, the new version is Simply 2005. They are not supporting Simply 2003 or Simply 2004 and you need to upgrade to Simply 2005 (Basic, Pro and Premium) in order to receive the payroll upgrades. Any customer who signed on SimplyCARE last year should have received the new version, Simply 2005, by the middle of December. You should download the new payroll tables version before processing the first payroll of 2005. If you are unable to download the payroll files to the correct computer you can order a payroll table CD from Simply Accounting for $19.95.


Please visit their site at www.simplyaccounting.com for more information.


T4 AND T5 INFORMATION


All businesses should have received their 2004 payroll package from the Federal government the first week of December. For the clients who utilize our services to prepare your T4's and T4 Summary we ask that you include this package with your companies payroll information in January 2005.images/officehours.gif (1563 bytes)Simply Accounting users should make a separate backup diskette of their payroll information prior to changing the system date to January 1, 2005. You can still prepare your T4's anytime in 2005 by selecting the previous year T4 option.


Clients who have declared dividends in the past will receive a T5 remittance package that includes a preprinted T5 Summary. Please forward this package to our office in order to facilitate our T5 Summary preparation for 2004.


VEHICLE DEDUCTIONS


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At present the Department of Finance has not introduced new vehicle deduction limits so for 2005 the amounts remain the same. If new amounts are announced we will post the changes at our website, www.contrenmanagement.com


NEW MINIMUM WAGES

 


The minimum wage increase, effective February 1, 2005, is as follows:


The minimum wage for students under 18 years old and working less then 28 hours per week will increase $.25/hour to $6.95.images/minim.gif (2373 bytes)

 

The minimum wage for liquor servers will increase $.30/hour to $6.50.

 

The regular minimum wage will increase $.30/hour to $7.45.

 

MEDICAL EXPENSES

 

 

Each year our office sends a personal tax checklist to our clients to assist in their personal tax return preparation. On this checklist we request medical expenses and provide a few examples of same however discussions with a number of clients this year revealed that the scope of allowable medical expenses was not understood.

 

images/medical.gif (4153 bytes)As always prescription drugs and medical services for your entire family are allowable medical expenses. Medical services includes, but not is limited to, Chiropractors, Chiropodists, Dermatologists, Naturopaths, Plastic Surgeons and Therapists, You can also deduct all of your dental costs, including those expensive orthodontics for your children. All vision care, including corrective surgery is an allowable medical expense.

For clients with aging or infirm patients the cost of required home renovations are an allowable medical expense.

 

The end of the calendar year is the perfect time to gather your medical expenses or ask your care provider for a year end statement of costs. Remember that we will allocate your families medical expenses on the spouse with the lower taxable income thereby creating the largest tax savings available.


Please contact the office if you require additional clarification of medical expenses.

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Contren Management Consultants Inc.
109 Industrial Dr., P.O. Box 295
Dunnville, Ontario. Canada N1A 2X5
Tel: (905) 774-2977
Fax: (905) 774-1096

E-mail: info@contrenmanagement.com


Contren Management Consultants Inc. 1999. All Rights Reserved.