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Fall 2001 E-NOTES

To print the Fall E-notes click here:


2001 T4 FILING

According to information provided by Revenue Canada small employers (less then 70 employees) will be able to file their 2001 T4 Summary and related T4sí through the internet. Each employer that is eligible to internet file their T4ís will receive an individual Web Access Code on their personalized T4 Summary form.

Our office will still be providing year end T4 filing services and are looking forward to utilizing the internet filing options. We will require your companies exclusive filing code in order to use this service for your firm. We will require you to keep your year end T4 package (usually mailed in December) and forward same to our office at the end of December 2001.

PROVINCIAL BUDGET UPDATE

Effective October 1, 2001 the Ontario government lowered the personal and corporate tax rates. These new rates were to become effective January 1, 2002 but we will enjoy an additional three months of moderately lower taxes.

The corporate tax rates will decrease as follows: general corporate income tax rate declines from 14% to 12% and the small business rate will decline from 6.5% to 6%. Note that these new rates will be prorated to your corporations year end date.

The personal tax rates will decrease as follows: first level of personal income tax rate to 6.16% and second level of personal income tax rate to 9.22%. This means that an Ontario taxpayer with earned income of $60,000 is paying a combined personal tax rate of 32.22%.

Simply Accounting Users: Do not purchase updated payroll plan for the remainder of the year as you will need a new version for January 1, 2002 payroll.

MOVING EXPENSES

A reminder for full time students that moving expenses to and from your educational institution are deductible against scholarships, bursaries, fellowships, research grants and prizes for achievement.

Moving expenses are also deductible from your residence for education and to a new location for a summer job. You can claim simplified travel and meal costs for the move but you will still need receipts for other moving expenses.

EMPLOYMENT STANDARDS ACT

The new Employment Standards Act was passed in September 2001. This replaces the old ESA but most of the provisions remain the same. Notable differences are as follows.

1/ Employees are allowed to work sixty hours per week. This must be agreed to in writing. Ministry permission is no longer required in advance. Please note that overtime pay is required after 44 hours of work per week.

2/ The calculation of Public Holiday (Statutory Holiday) pay for part time employees has changed. Public Holiday Pay for part time employees is calculated using the average hours worked per day over the preceding four weeks of employment. For example an employee who worked eight days at 6 hours per day would be entitled to six hours pay for the public holiday.

Please note that all employees must work their last scheduled day before and the first scheduled day after the public holiday in order to be eligible for public holiday pay.

The following are public holidays; Christmas, Boxing Day and New Years Day. Note that Remembrance Day is not a public holiday.

3/ The other major change to the new ESA is the fact that all employer-employee arrangements must be in writing. This includes simple things such as change in days off and agreements to work Public Holidays. It appears that the Ministry Of Labour is attempting to force employers to document most aspects of their employee relationship.

VEHICLE DEDUCTIONS

A reminder that for calendar 2001 the vehicle expense amounts for employees are as follows: $.41/km for the first 5,000 km per year and $.35/km for mileage exceeding 5,000 km per year.

The deductible cost limit for vehicle leasing is $800/month.

The capital cost limit for passenger vehicle acquisitions is $30,000 plus tax.




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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
After Hours: (905) 540-7006
E-mail:
info@contrenmanagement.com

© Contren Management Consultants Inc. 1999. All Rights Reserved.