SUMMER 2001 E-NOTES
To print the summer E-notes
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.
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
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.
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.
- 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.
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.