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SUMMER 2001 E-NOTES

To print the summer E-notes click here:



UPDATED PROVINCIAL BUDGET

The Provincial government prepared their traditional spring budget with minimal new tax savings for the Ontario taxpayer. The key tax measure is the introduction of tax credits for parents of children who attend private schools. Starting in 2002 parents will receive a tax credit of 50% of each childs yearly tuition fees, up to a maximum of $700. The amount of the tax credit increases by $700 a year until 2006 when the maximum amount of credit will be $3,500.

SUMMER OFFICE HOURS

As in previous years our office will be closed on Fridays from June 1, 2001 until September 7, 2001. You will be able to leave a Voice-Tel message which we will review on a regular basis. Our office will be open, as usual, from around nine in the morning to about five in the afternoon Monday to Thursday.

STATUTORY HOLIDAYS

A reminder that the following are statutory holidays in Ontario; Canada Day, Labour Day and Thanksgiving. Please note that the Civic Holiday, August 6, is not a statutory holiday.

If your employee works any statutory 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. Part time employees are to be paid an average of the daily hours worked in the preceding 13 week period. Please note that the hours paid for the statutory holiday do not create an overtime situation.

Employees with less than three months constant employment are not eligible for statutory holiday pay.

2000 PERSONAL TAX RETURNS

We wanted to thank our clients for providing their personal tax information on a timely basis. Your efforts allowed us to prepare and file all tax returns by the due date.

We would appreciate receiving a copy of your 2000 personal tax return assessment before September 2001 in order to assist with your 2001 personal tax planning.

REGISTERED EDUCATION SAVINGS PLAN

As mentioned previously the federal government has significantly amended the program by adding an additional 20% tax free contribution (up to $400/year) for each qualified child. Another change has been the establishment of a family RESP. Where the parent(s) has more then one eligible child you can establish a family RESP. The contribution limits and grants remain the same but the plan is not dedicated to a specific child. This allows better growth and withdrawal opportunities if and when an individual child decides to not pursue a post secondary education.

The family plan may allow the funds to remain tax sheltered if there are other qualified children still in the plan. I suggest that you contact your investment consultant if you have more than one qualified child with an RESP.

WORKERS COMPENSATION

A reminder to our clients that the only non eligible wages for their WSIB calculations are shareholders/officers & directors. Your spouse may actively work for the company but is still required to be covered under the Act. To legally eliminate paying WSIB premiums on your spouses wages they must be listed as an officer/director in your companies minute book.

Please note that during a WSIB audit the auditor will request the minute book to verify who is exempt. I suggest you update your records in order to eliminate future premiums.

QUICK METHOD FOR GST

The quick method for GST is very popular with businesses that generate less than $200,000 in taxable revenue. A couple of items to remember if you are registered as a quick method filer.

  1. Any capital items that you purchase for your business ie: computer, equipment, vehicle are eligible for input tax credits separate from your normal GST calculations. This means that you need to detail any GST paid on capital items on line 106 of your GST return and deduct this amount from your quick method calculations.

  2. A reminder to deduct $300 ($30,000 @ 1%) as a credit from your quick method calculation prior to completing line 105. This is the standard "compensation" that Revenue Canada allows all quick method filers.



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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.