CONTREN MANAGEMENT CONSULTANTS
INC. SUMMER 2005 NEWSLETTER
SUMMER OFFICE HOURS
A reminder that the office will be closed on Fridays from June 10, 2005 until September
9, 2005. The office will be closed August 22, 2005 to August 26, 2005 inclusive. We have
updated our after hours voice mail and will be reviewing our messages frequently whenever
the office is closed.
STATUTORY (PUBLIC) HOLIDAYS
A reminder that Canada Day, July 1 and Labour Day, September 5 are Public Holidays in
Ontario. The Civic Holiday, August 1, is not a paid Public Holiday.
ONTARIO HEALTH PREMIUM
As a result of the Provincial Liberal government the citizens of Ontario are now
obligated to pay their own, individual Health Premium. The existing Employers Health Tax
remains in effect and at the same rates.
A reminder that the Health Premium is calculated and collected on the taxpayers
personal income. This includes dividend, interest, rental and earned income. For example
if you earn $40,000 of pension, dividend and interest income you will be required to pay
$450 of Health Premium when you file your 2005 personal tax return.
PERMANENCE OF CHANGE SEMINAR PART THREE
Previous surveys of participants indicate a preference for a "warm weather"
destination. The only downside to a warm weather destination is the incremental cost for
the entire seminar.
We would appreciate all interested parties contacting Debbie to discuss the warm
weather option further. We should have a sense of the groups direction by mid July and
will provide further information at that time.
We appreciate your participation in past seminars and your present interest. As in the
past we would be scheduling the seminar for the end of January.
MINISTRY OF LABOUR
The Ministry Of Labour has recently hired 200 field staff to review the safety
practices of Ontario companies. These staff members have unlimited power to enter your
premises, review your operation and issue orders for non compliance. The claim of
ignorance is not a defense for safety "violations".
As outlined in previous newsletters the Occupational Health & Safety Act requires
companies that regularly employ more then five people to have a Health & Safety
representative. Companies that regularly employ more then 20 but less then 50 people are
required to establish a Joint Health & Safety Committee. This committee must be
comprised of at least two people, one of which must be selected by the
"employees" and not have managerial authority. Companies with more then 50
employees are required to establish a Joint Health & Safety Committee with a minimum
of four members.
These "committees" are a minimum requirement under the Act and each
employer has significant other items for compliance. Some of the basic items addressed in
the Act are WHIMIS training, first aid stations, safety policies and procedure manuals,
fire safety plans and regular safety meetings. We strongly recommend that each client
review their own safety program and compare this to the requirements under the Act.
For further information and resources please visit the web site www.ccohs.ca
PERSONAL TAX RETURNS
Clients with children enrolled in post secondary education can reduce their own
personal taxes by utilizing the students unused education credits.
Each student receives a T2202 which provides tuition fee and monthly education credit
information. If the individual student does not fully utilize their available education
credits the balance, to a specified maximum, can be transferred to a parent. This transfer
of education credits will reduce the parents personal income tax liability.
For the 2004 taxation year our office experienced difficulty receiving the T2202 forms
from the students. In past years this from would be mailed to the students residence which
was likely the parents home. This past year the T2202 forms were only available on the
schools internal web site, accessible only by the student. Some students did not download
this form and provide the information to our office with the rest of their personal tax
information. As a result some parents likely paid more personal income tax then required.
At the beginning of the 2005 calendar year the Federal Department Of Finance announced
updated vehicle kilometer rates, as follows;
For the first 5,000 km per year $.45/km allowable expense
For every km thereafter per year $.39/km allowable expense
Please update your expense reports accordingly. Note that the maximum capital cost for
allowed for depreciation remains at $30,000 (plus taxes) and that the maximum lease
expense remains at $800/month (plus taxes).