#payroll basics

Trump signed a comprehensive tax reform bill into law, last December, which includes the Transition Tax (also known as the Repatriation Tax). This tax reform bill targets American multinational companies such as Microsoft and Apple. This is to refrain them from recreating billions dollars of money in their foreign subordinates.

As an effect, a lot of Canadian residents handling US or dual…

Review of Canada’s Comprehensive Tax: In Need

The reduction of the corporate tax rates, which is for permanent basis, and the personal tax rates, which is temporary until the year 2025, are the new U.S. tax law’s prominent change. It highly affects the economic growth of the United States, its inbound investments, and the creation of more jobs. But there are still concerns raised about its effect in the federal deficits, the national debt…

Changes in Ontario Labour Laws: What to Expect in 2018

As an Ontarian worker, you’ve probably heard about Bill 148, or the Fair Workplaces, Better Jobs Act, 2017. Here are the following changes that will take effect this year:

Minimum Wage Increase

Starting January 2018, the minimum wage in Ontario increased to 20%. From the previous minimum of $11.60, it jumped to $14. The wage increase has been welcomed by some, while others consider it to be a…

Why a tax refund isn’t always good news?

Tax refunds are heavily misunderstood. Some people may take them as cash windfall, but the cold heart truth is that it has always been YOUR money. Getting a check after filing your taxes mean that you’ve paid too much income tax throughout the year and you just gave the CRA an interest-free loan while you miss out on a little extra money each pay cheque.

While many had already planned how to put…

Does Canada really need a tax reform?

The last time that Canada had seen a comprehensive review was in 1966, during the Carter Royal Commission on Taxation, but it was not until 1972, that many of its recommendations were implemented. This took about a decade from the start of the Royal Commission. However, this is not to say that a more in-depth review of Canada’s tax reform would be all wrong, rather, it would be too much to…

The Canada Revenue Agency Launched Services to Help Filers

Canada Revenue Agency (CRA) announced last February, through the Honourable Diane Lebouthillier that they will open the filing season by the 26th of the month. This is part of their continuous effort to improve their services to make it convenient and fast for the Canadians to file their tax returns and access both credits and benefits to which they are entitled.

CRA has been processing since…

The T4 Tax Slip

The T4 Tax Slip

The T4 tax slip-also known as the Statement of Remuneration Paid-is an indicator that an employee has been paid prior to deductions. These deductions include an employee’s contributions to a Canadian Pension Plan/Quebec Pension Plan, and Employment Insurance, and other fees deducted from the salary during the tax year. The T4 also shows the exact amount of an employee’s…

The government has failed in addressing the fallout of the recent Phoenix payroll. Auditor General Michael Ferguson foresees that it will take several years still before the government can fix its mess. The budget it would require is also predicted to cost more than $540M. As of now thousands of employees are not paid, underpaid, or overpaid.

In an attempt to provide a lasting solution for the…