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Accounting News

Electronic T4 submission requirement

Starting in January 2010, filers who submit more than 50 T4’s to the CRA will be required to file electronically using the Internet.

How is this completed?

Filing electronically means sending your information returns to the CRA using the Internet. The CRA is increasing the size of file that they can accept from 20 megabytes to 150 megabytes. As a result, all filers will be able to send their information returns electronically.  Effective January 1, 2010, filers who previously filed more than 50 returns on paper, CD, DVD, or diskette must file over the Internet or they will be subject to penalties.

How do I prepare for the change?
  1. You should understand whether you payroll software can support electronic T4 creation.  If you are unsure, please contact us to find out.
  2. Ensure your payroll tax table updates are applied.  Contact us to schedule a time to complete this for you.
  3. Setup an ePass account with the CRA (if you do not already have one).  This is a user account which the CRA creates for the employee/business owner whom will be filing.  If an employee will be filing on behalf of the entire company the business owner must associate the employee as a representative of the company.
To setup an ePass account visit the following site: http://www.cra-arc.gc.ca/esrvc-srvce/tx/psssrvcs/bfr-eng.html

To create an account for a representative of your company you can visit the following site for information on how to complete this step: http://www.cra-arc.gc.ca/esrvc-srvce/tx/rprsnttvs/ttrl/rc-ttrll-3-eng.html

To associate your representative to your company, visit the following site: http://www.cra.gc.ca/mybusinessaccount

As always, if you have any questions or concerns please contact us .
 

2009 Canadian Budget - Tax Relief

January 27th the Federal Government unveiled the 2009 budget. Regardless of your political affiliation, you undoubtedly watched with interest to see how the Harper government would attempt to support the Canadian economy in a time of great uncertainty.

Canada's Economic Action Plan, designed to "protect Canadians during the global recession, to create new, good jobs for the future, and to equip our country for success in the years ahead."

One of the strategies - $20 billion in tax relief:

  • Basic personal amount will increase in 2009 to $10,320 from $9,600 in 2008 (worth about $66 for a person with an income of $30,000 to $150,000).
  • The upper limit for the first income-tax bracket (15%) will increase to $40,726 from $37,885, allowing more income to be taxed at 15%; the upper limit for the second tax bracket (22%) will increase to $81,452 from $75,769 (total savings of $133 for a two-income family earning $80,000 with two children).
  • Up to $150 in annual tax savings for seniors through a $1,000 increase -— to $6,408 -— in the age credit amount.
  • Low-income families can earn an extra $1,894 and still receive the maximum National Child Benefit supplement, providing additional benefits of up to $436 annually.

For more information on how the new budget will effect your tax situation, or to begin planning to take advantage of these changes, contact us to arrange a meeting.