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.
As mentioned 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 weeks/20).
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. Of course you would be viewed as the Grinch to your remaining employees but you would
be following the Employment Standards Act.
For calendar 2003 the Federal personal exemption amount (draft) has increased to $7,756
and the Provincial personal exemption amount (draft) has increased to $7,817. Please
adjust your payroll ledger information accordingly.
For calendar 2003 the CPP deduction rate has increased to 4.95% ($1,801.80 total
deduction) and the maximum earned income has increased to $39,900. For your information
the CPP rate was 2.5% in 1994 which means we, as business owners, are paying more then
double the CPP employers portion then just nine years ago. Lower personal taxes help our
employees but the employer is paying an additional hidden "tax" of about $1,000
per full time employee.
For calendar 2003 the EI rate has decreased to 2.1% ($819.00 total deduction) while the
maximum earned income has remained constant at $39,000.
Note that the proposed Ontario personal tax rate reduction for January 1, 2003 has been
deferred until January 1, 2004.
OFFICE CHRISTMAS HOURS
Our office will be closed from the afternoon of December 24, 2002 to the morning of
January 2, 2003 in order to allow Debbie to fully enjoy the spirit of the Christmas
We will be checking our messages on a timely basis throughout the Christmas holidays.
Simply Accounting has developed an updated package called Simply 2003. They are still
supporting Version 9 and in fact have a special deal on presently for payroll updates for
Version 9. There will be no new updates for Version 8 in 2003.
As a point of interest Simply Accounting still supports the old DOS program and is
presently issuing Version 4.0U updates for calendar 2003.
All businesses should be receiving their 2002 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 2003.
Simply Accounting users should make a separate backup diskette of their payroll
information prior to changing the system date to January 1, 2003. You can prepare your
T4's anytime in 2003 by selecting the previous year T4 option.
Please note that the 2002 T4 internet filing options have expanded but may require
additional work. For clients who use a payroll package, including Simply Accounting, it
will be easier and more accurate to print the T4's and T4 Summary and mail this
information to Revenue Canada.
At present the Department of Finance has not introduced new vehicle deduction limits so
for 2003 the amounts remain the same. If new amounts are announced we will post the
changes at our website,
For calendar 2004 and future the RRSP deduction maximums increase. The yearly maximum
will still be a function of earned income (18% of income) therefore your earned income in
2003 must increase to be eligible for the maximum deduction in 2004. For 2006 and future
years the maximum deduction and corresponding income will be indexed to inflation so we
there is no definitive amounts at present.
We have outlined the future RRSP amounts below:
A reminder that any unused RRSP eligibility carries forward forever.
MAX DEDUCTION INCOME REQUIRED
ELIGIBILITY FOR NEXT YR CONT
2006 & future Indexed
EMPLOYEES TIME OFF
A number of our clients have conflicting information regarding employees who are absent
from the workplace. Some employers pay for time off sick or for a death in the family
while other employers allow unpaid time off for the same circumstances, when requested by
the employee. In most cases this is the result of the companies written policy but
depending on the size of the company this is not a legal requirement.
The Employment Standards Act is very clear about what is called "Emergency
Emergency leave is unpaid, job protected leave of up to 10 days per year. This time off
may be taken in case of illness, injury or other urgent matters. The key for employees
being eligible for emergency leave is that their employer normally has 50 or more
employees. If the company has less then 50 employees there is no provision for any time
The reality is that most, if not all, "small" employers will not terminate an
employee if they miss work for illness, death or injury but the employee does not have the
right to time off. The fact that the employer has allowed their employee time off, whether
paid or unpaid, has been made at the employers singular discretion. If the employee states
that they have the right to this time off please refer them to the Employment Standards
Act section on Emergency Leave.