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
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.
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
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.