Federal Budget: Temperatures are not the only things freezing!
On Tuesday, Finance Minister Jim Flaherty announced his annual budget. If you’re a small business and haven’t gotten updated, don’t worry, we’re here to help!
This year, the federal budget brings about small changes for small businesses especially pertaining to one of the most bone-chilling factors: taxes! First, the good news: the Government of Canada isn’t planning on raising personal or corporate taxes. If you’re a client, we’ll follow this matter and inform you about any further changes and how they affect your accounting.
Please have a look below at the proposed changes from 2014 budget.
- If you’re an employer with $15,000 in payroll remittances currently, you might have been used to sending them to the CRA twice a month. The 2014 Federal Budget will raise that threshold to $25,000. This means that you’ll only be sending in one payment a month if you qualify. In addition, if you were an employer meeting the $50,000 payroll remittance threshold and remitting 4 times a month, that threshold has now been increased to $100,000. You now get the advantage of reducing the number of payments required.
- If you’ve never donated to charities before, you might consider it now due to the big tax break you’ll get. In 2014, a credit will be given of 40% for the first $200 you donate.
- The cost of hiring new employees may become more expensive. The EI Hiring Credit program has ended on schedule as of the beginning of 2014.
- EI Premiums rates are being brought to a three year freeze as per 2013 figures at $1.88 per $100 of insurable earnings! The EI premium rate is essentially a payroll tax and the higher the rate, the more negative impact on job creation.
- The Government of Canada is modifying the definition of “split income”. This means that you can now include income paid to a minor in the form of a trust or partnership as ‘split income’.
- Any acupuncturists’ and naturopathic doctor’s services will not longer have to charge HST like other health professionals!
- The Canada Job Grant will be implemented as of 2014. This can provide up to $10,000 in funding to train underemployed/unemployed people for new jobs if you’re a business that qualifies. To find out if you qualify or not, stay with us as we’ll be keeping a look out on the eligibility details!
The Federal Budget for 2014 is 427 pages in length, which means there may be more things pertaining to you than we’ve discussed. To discuss further about the implications the budget may have on you or your business, please don’t hesitate to contact us today. We can be reached at 416-495-1098 or e-mail us at firstname.lastname@example.org.