| CPP/QPP – 2012 | |
| Year’s Maximum Pensionable Earnings | $50,100.00 |
| Year’s Basic Exemption (by pay period type): | |
| Annual | $3,500.00 |
| Monthly (12) | $291.66 |
| Semi-Monthly (24) | $145.83 |
| Bi-Weekly (26) | $134.61 |
| Weekly (52) | $67.30 |
| Maximum Contributory Earnings | $46,600.00 |
| Contribution Rate—Employee/Employer | 4.95% |
| Contribution Rate—Self-Employed | 9.90% |
| Maximum Contribution—Employee/Employer | $2,306.70 |
| Maximum Contribution—Self-Employed | $4,613.40 |
| EMPLOYMENT INSURANCE—2012 | |
| Maximum Annual Insurable Earnings | $45,900.00 |
| Premium Rate (Employee) | 1.83% |
| Premium Rate (Employer, 1.4 x Employee) | 4.95% |
| Annual Maximum Premium (Employee) | 9.90% |
| Annual Maximum Premium (Employer) | $1,175.96 |
| *Unless a reduced premium rate applies | |
| TD1—PERSONAL TAX CREDIT RETURN (FEDERAL) – 2012 | |
| Basic Personal Amount | $10822.00 |
| Eligible Dependant or Spouse or Common-Law Partner Amount | $10822.00 |
| Canada Child Tax Benefit-Base Benefit | $1405.00 |
| Pension Income Amount | $2000.00 |
| Age 65 Amount | $6720.00 |
| Disability Amount | $7546.00 |
| Caregiver Amount or Infirm Dependant Amount | $4402.00 |
| Education Amount—Full Time | $400.00/month |
| Education Amount—Part Time | $120.00/month |
2012 Rates and Maximums Chart
February 8, 2012 By Leave a Comment
Deficit Elimination Critical For Job Creation And Economic Growth
January 24, 2012 By Leave a Comment
The McGuinty government remains focused on jobs and the economy. Despite uncertainty around the world, Ontario’s real Gross Domestic Product (GDP) rose 0.7 per cent (2.7 per cent annualized) in the third quarter (July to September 2011).
Provincial GDP has now increased 5.8 per cent over the past nine quarters, putting it one per cent above its pre-recession level. Growth in the third quarter was driven by increases in exports and Ontario’s manufacturing output. Modest gains in total investment and consumer spending also contributed.
As of December 2011, employment was 42,300 jobs above the pre-recession peak in September 2008. Ontario’s employment has increased by 299,100 net jobs from the recessionary low in May 2009, with full-time employment up by 268,000 net jobs.
The McGuinty government’s plan to make Ontario more competitive and create the right climate for job creation is working. The plan — including Ontario’s Tax Plan for Jobs and Growth — helped stabilize the province’s economy by lowering income taxes for families and businesses and introducing tax changes — including the HST — to help ensure Ontario’s future prosperity.
CRA announces maximum pensionable earnings for 2012
January 24, 2012 By Leave a Comment
The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2012 will be $50,100—up from $48,300 in 2011. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.
Contributors who earn more than $50,100 in 2012 are not required or permitted to make additional contributions to the CPP.
The basic exemption amount for 2012 remains $3,500. Individuals who earn less than that amount do not need to contribute to the CPP.
The employee and employer contribution rates for 2012 will remain unchanged at 4.95%, and the self-employed contribution rate will remain unchanged at 9.9%.
The maximum employer and employee contribution to the plan for 2012 will be $2,306.70, and the maximum self-employed contribution will be $4,613.40. The maximums in 2011 were $2,217.60 and $4,435.20.
Guaranteed Income Supplement for Seniors
January 24, 2012 By Leave a Comment
The Federal Guaranteed Income Supplement (GIS) is available to low-income seniors living in Canada, who are receiving (or are eligible to receive) the Old Age Security Pension (OAS). An application must be filed to receive this supplement – it is not done automatically when you file a tax return. Once a person is receiving the GIS, it will be automatically adjusted each year after the income tax return is filed. However, if there is a reduction in your pension or employment income, Service Canada may calculate your GIS benefit by estimating your pension and employment income for the current year, instead of using last year’s pension and employment income. If you or your spouse or common-law partner have a lower income this year for either of these reasons, you should contact Service Canada. Your benefits may increase.
For January to March 2012, the maximum combined payment from OAS plus GIS is $1,272.48 ($540.12 OAS + $732.36 GIS) per month, for a single person. This maximum is reached if there is no income other than OAS and GIS.
For more information visit the Tax Tips website
Harper Government Highlights Tax Relief for 2012
January 20, 2012 By Leave a Comment
The Harper Government today highlighted the following important tax changes taking effect in 2012:
- The final stage of the tax reduction plan introduced by the Harper Government in 2007 comes into force
on January 1, 2012, when the federal general corporate income tax rate is reduced to 15 per cent. This type of broad-based tax reduction plays a well-recognized role in improving productivity and economic growth rates, thereby creating more and better-paying jobs for Canadians and raising their standard of living. As other nations face the prospect of tax increases due to unsustainable budget deficits and spending commitments, Canadians are benefiting from permanent tax relief that is broad-based and structurally sound. - Effective January 1, 2012, the Family Caregiver Tax Credit will provide new tax support for caregivers of infirm dependent family members. Announced in Budget 2011, this new 15-per-cent non-refundable tax credit on an amount of $2,000 will provide tax relief for caregivers of all types of infirm dependent relatives, including, for the first time, spouses, common-law partners and minor children.
- The temporary 50-per-cent straight-line accelerated capital cost allowance rate for investments in manufacturing or processing machinery and equipment was extended to include investments undertaken in 2012 and 2013. This extension was announced in Budget 2011 to help businesses in manufacturing and processing industries restructure and retool to position themselves for long-term success.
Save More in 2012 With the Tax-Free Savings Account
January 20, 2012 By Leave a Comment
Canadians will have a new $5,000 of room to invest in their Tax-Free Savings Account (TFSA).
“TFSAs will continue to enable Canadians to more easily meet their savings
goals by allowing them to earn investment income absolutely tax-free,” said Minister Flaherty. “Savings contribute to economic growth by increasing the funds available for economic investment, which leads to a higher capacity to produce goods and services and improves the standard of living of Canadians.”
Each year, an individual’s annual TFSA contribution room is made up of three components:
- the annual TFSA dollar limit of $5,000;
- any unused contribution room from the previous year; and
- the total amount of withdrawals from the individual’s TFSA made in the previous year.
For more information visit the Department of Finance website.
Annual Tax Expenditures & Evaluations Report
January 20, 2012 By Leave a Comment
This report provides estimates and projections of the revenue impacts of federal tax measures designed to support the economic and social priorities of the Government of Canada.
The publication reflects tax relief measures from the Next Phase of Canada’s Economic Action Plan, the Harper Government’s low-tax plan for jobs and growth.
“In an uncertain global economy, our Government will stay the course with our low-tax plan for jobs and growth—a plan that has worked and served Canadians well,” said the Honourable Jim Flaherty, Minister of Finance.
“Our economic leadership will continue as we stick to our plan to return to fiscal balance in the medium term, implement our deficit reduction action plan to find savings within government spending, and take targeted actions when necessary to support the recovery.”
For more information visit the Department of Finance website.
We’re Moving
January 10, 2012 By Leave a Comment
On February 6th 2012, Padgett Business Services will be moving to our new offices in Kanata South on 160 D Terence Matthews Crescent Suite 2.
“We are really going to enjoy this new location,” 
said Karen Jerome, CMA, “it will facilitate our continued growth and I think clients and prospective clients will find it more convenient. We’re all looking forward to the new office; the office is situated close to other businesses, fitness facilities, and restaurants.”
Our new address effective February 6 will be:
160 D Terence Matthews Crescent Suite 2 Kanata, Ontario K2M 0B2For more information please contact via email
Padgett Nominated for Professional Services Business of the Year
January 10, 2012 By Leave a Comment
KANATA, Ontario – Padgett Business Services®
was recently nominated for Professional Services Business of the Year through the Kanata Chamber of Commerce. Padgett is a financial reporting, tax consulting, and payroll business that specializes in servicing independent businesses with less than 20 employees. Karen Jerome opened her office in 2007, which is located in the Beaverbrook Mall in Kanata.
“It is an honour to have been nominated for this award with the Kanata Chamber of Commerce. Our specialized advice and personalized service will always be the strength behind what we do for small business owners,” said Karen. “These are the tools that have taken our Kanata office to the forefront of our company and Padgett to the forefront of our industry.”
The Kanata Chamber of Commerce will be holding its People’s Choice Awards on February 23rd, 2012 at the Brookstreet Hotel.
For those interested, you can place your votes through the Kanata Chamber of Commerce website at www.kanatachamber.com . Voting will remain open until February 3, 2012.
Since 1966, Padgett has provided financial reporting and tax consulting services to independent business owners throughout North America. Padgett has been ranked as a #1 small business accounting firm by Entrepreneur, Success, and Income Opportunities magazines, as well as being ranked in Accounting Today’s Top 100. The local operation is part of a network of over 400 independently owned and operated Padgett offices throughout North America.
Form T2200 – Declaration of Conditions of Employment
January 9, 2012 By Leave a Comment
Canada Revenue Agency (CRA) expects employers to complete Form T2200 for employees that have reasonable grounds to make expense claims against employment income. If there is some doubt, CRA will provide interpretive assistance.
For more information about the T2200 visit the CRA website.
