Happy Holidays from all of us at Contren
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.
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
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.
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
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.
Once again, in the
spirit of the Christmas season, our office will be closed to allow our staff to enjoy time
with their families. 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
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
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.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.
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
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.
The minimum wage for
liquor servers will increase $.30/hour to $6.50.
The regular minimum
wage will increase $.30/hour to $7.45.
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.
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
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.