Hiring Credit for Small Business

December 19th, 2011

Back in June 2011 in an effort to bolster the job market, the Canadian government announced the Hiring Credit. This is a one time payment of up to $1,000, that will be sent out 2012.  To qualify, your small business needs to:

  • pay less than $10,000 in total Employment Insurance (EI) premiums in 2010;
  • reflect an increase in EI premiums in 2011;
  • file a T4 return for 2011

The payment will be the increase in your EI premiums from 2010 to 2011.  Read more here.

Filed under: Business tax by David Boese No Comments »

I recently talked about the CPP changes that are coming in 2012. I want to stress again that these are important changes.  Whether you are an employee or an employer, you need to take the time to read about these changes.

Canada Revenue Agency thinks they are important too…. so they are holding a webinar on December 7.  Consider joining the webinar if you have any questions on this topic.  If you can’t make it, you can view the slides here:


Filed under: Business tax, Other tips, Personal Tax by David Boese No Comments »

This is an important reminder of the CPP changes coming on January 1st 2012.  We’ve had over a year to prepare for them, but it’s a good idea to read about these changes again to make sure you’ve got it all covered.

Here’s a good place to start:  www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/clcltng/cpp-rpc/cppchng-wh-eng.html

Be sure to catch this:

Under the new rules, an employee who works and receives a CPP or QPP retirement pension will now have to contribute to the CPP if he or she is:

  • 60 to 65 years of age;
  • 65 to 70 years of age, unless the employee has filed an election with you or another employer to stop paying CPP contributions (the election will take effect on the first day of the month following the month the employee provides you with a completed and signed election form);
  • 65 to 70 years of age, if the employee revoked his or her election to stop paying CPP contributions in 2013 or later.

Employers, be proactive and check with your employees ahead of time.  If they are  65 or over, do they want to pay into the CPP or not?  Get the elections in place.

Filed under: Business tax, Personal Tax by David Boese 1 Comment »

On October 31, 2011 the Department of Finance (Canada) announced a proposed increase in the corporate rates for Personal Service Business corporations (PSBs).  To summarize very briefly, a PSB corporation is a corporation set up to provide employment services.   Here is a good article that provides a description of a PSB.

Under the proposed changes, the corporate tax rate for a PSB will increase by a dramatic 13 percentage points (from 25% to 38% federally).

If you are the owner of a PSB, you’ll want to be prepared.  If you are considering setting up a PSB, think about it carefully.

Filed under: Business tax by David Boese No Comments »