GARY BOOTH CHARTERED ACCOUNTANTS

TAX TIPS - PAYROLL GUIDE

 

Web Sites: Labour Standards	Notice of Termination by Employer: After 3 months - 1 week After 1 year - 2 weeks After 3 years - 1 week/yr worked (max. 8 weeks)
Federal & Ontario - Minimum Wage Guide: 2009 Hourly Rate - $9.50/hr Under 18 - $8.90/hr Home Workers $10.45/hr Liquor Server $8.25	Statutory Holidays: New Year Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Christmas Day Boxing Day
Minimum Daily Pay - Call In: 3 hours	Employer Health Tax: Total Ontario Annual Remuneration - Rate Less than or equal to $400,000 - nil% More than $400,000 - 1.95%
Overtime Pay: Time + 1/2 over 44 hrs/week (certain jobs are exempt from overtime provisions)	Workplace Safety & Insurance Board web site. Maximum Assessable Amounts for 2009 - $74,600
Minimum Vacation with Pay: 2 weeks	Canada Pension Plan for 2009: Year's Maximum Pensionable Earnings - $46,300 Annual Basic Exemption - $3,500 Contribution Rate - $4.95% Maximum Contribution - $2,118.60
Minimum Vacation Pay During First Year and on Termination: 4% of annual earnings	Employment Insurance for 2009: Years' Maximum Insurable Earnings $42,300 Contribution - 1.73% Maximum Contribution - $731.79
Reporting Requirements (Payroll): See Federal and Provincial Tax Tables Payroll Remittances: 15th of the following month, unless a larger employer (average remittances more than $15,000 must file semi-monthly on the 10th and 25th Average remittance of more than $50,000 must file weekly on the 3rd day after the pay period Annual T4 Summary and Supplementaries: Last day of February of the following year Annual T5 Statement of Income and Supplementaries: Last day of February of the following year Workplace Safety and Insurance Board: Generally by the end of the following month, however certain smaller business may , upon permission report less frequently Annual Return to be filed by March 15th of the following year

 

Employee Benefits and Allowances - The following are a few of the taxable benefits and allowances provided by employers to employees:

Item	Taxable	CPP	EI
Employees personal use of employer provided automobile	Yes	Yes	No
Reasonable automobile allowance for use of employee vehicle (i.e. based on reasonable rate per km for business km's driven	No	No	No
Payment or reimbursement of professional membership dues if a condition of employment	No	No	No*
Special occasion gift or non-cash reward to an employee of $500 or less	No**	No**	No**
Club memberships where the employee is the one who primarily benefits	Yes	Yes	No*
Group term life insurance policies with premium paid by employer	Yes	Yes	No*
Dental and health care premiums paid by employer	No	No	No
Free or subsidized board and lodging not at a remote location	Yes	Yes	No*
Long and short-term disability premiums paid by employer to a group plan	No	No	No
Registered Retirement Savings Plan contribution by employer	Yes	Yes	Yes
Retiring allowances (to be reported on a T4A supplementary)	Yes	No	No
* If any of the above are paid in cash to the employee than the amount would be subject to Employment Insurance. ** This does not apply to cash or near cash gifts. Cash or near cash gifts will be considered taxable, pensionable and insurable. Near cash gifts include gift certificates, gold nuggets and any items easily converted to cash.