Some employers may receive their remittance vouchers late this month. Employers who do not have a remittance voucher can make a payment:
- by cheque or money order at the closest cash counter at a tax services office;
- by internet or telephone banking;
- by submitting a cheque or money order by mail to their Tax Centre (include a note with the 15 digit business number and the period to which it applies);
- employers who opt to wait for their remittance vouchers should make their payments immediately upon receipt.
Threshold 1 and 2 remitters should use the remittance slips in their booklets.
The CRA will attempt to minimize the impact to employers. Any employers subject to a penalty for late remitting their October remittance under the above circumstances should request taxpayer relief consideration under departmental delays using form RC4288.
New income exclusion for housing allowances paid to players on sports teams or members of recreation programs
Starting in 2007, up to $300 per month can be excluded from income for a board and lodging allowance for a participant or member of a sports team or recreational program if certain conditions are met.
TD1, Personal Tax Credits Return - July 1, 2007
The federal TD1 has been revised to include a new non-refundable tax credit amount of $2,000 in respect of children under 18 years of age at the end of 2007.
The new $2,000 non-refundable tax credit in respect of children under 18 years of age will take effect on July 1, 2007. Employees can reduce their tax withheld at source by informing their employer either electronically or in writing rather than submitting a revised TD1. For more information, see Filing Form TD1, Personal Tax Credits Return.
In addition, under proposed changes, the spouse or common-law partner amount and the amount for an eligible dependant increase from a maximum of $7,581 to a maximum of $8,929. The amount will be reduced by the partner or eligible dependant's net income for 2007. A revised TD1, Personal Tax Credits Return is now available.
If the employee files a revised TD1, determine the revised claim code in accordance with the claim code chart in the January 2007 claim code chart. These new and revised personal amounts have not been doubled for the period July to December because that would require the employee to refile the TD1 again for January 2008.
Payroll Deductions Tables (T4032) - July 1, 2007
The payroll deductions tables, effective July 1, 2007, are available for Newfoundland and Labrador, Prince Edward Island, New Brunswick and British Columbia.
Form TD1, 2007 Newfoundland and Labrador Personal Tax Credits Return
Provincial changes effective July 1, 2007, are included in Form TD1NL, 2007 Newfoundland and Labrador Personal Tax Credits Return.
Form TD1, 2007 Prince Edward Island Personal Tax Credits Return
Provincial changes effective July 1, 2007, are included in Form TD1PE, 2007 Prince Edward Island Personal Tax Credits Return.
Quarterly Remitting
Under proposed legislation, the threshold for Quarterly Remitting will increase to $3000 in 2008.
My Business Account
With My Business Account, you can now report a nil remittance, view your return status and account balance online. My Business Account also allows you to file a T4 return (up to 3 T4 slips) via T4 Web forms and transmit an Information return (up to 500 slips (or 610KB)) via Internet File Transfer without a Web Access Code. Simply log in to My Business Account using your epass User ID and Password and proceed to the Welcome page. Under the Payroll heading, select the account you want to access and then select "File a T4 return" or "Transmit a return".
Barbers and hairdressers
We now restrict the insurability of employment of workers employed in barbering or hairdressing establishments, who are not your employees, to barbers and hairdressers only. Other classes of workers, such as manicurists, beauticians, and massage therapists, are now excluded under this special rule. For more information, see Barbers and hairdressers.
Payroll Deductions Online Calculator
You can use our new Payroll Deductions Online Calculator (PDOC). It has the same features as the CD version of the tables, without the hassle of downloading or installing the program. The online calculator is compatible with all users' operating systems. By using the PDOC, you help us reduce printing and mailing costs, and thus save public funds.
Automobile deduction limits and expense benefit rates for 2007
For information about 2007 automobile deduction limits and expense benefit rates, visit Finance Canada.
Automobile Benefits Online Calculator
The calculator is no longer available through Tables on Diskette (TOD). It can now be accessed online at Automobile Benefits Online Calculator.
Employment Insurance rates for 2007
The Employment Insurance premium has been reduced to $1.80 for 2007. For more information, visit Finance Canada.
Canada Pension Plan pensionable earnings for 2007
The CPP pensionable earnings ceiling for 2007 is now $43,700. For more information, see the News Release.
Tables on Diskette (TOD)
Changes are coming for the mail-out of Tables on Diskette (TOD). In keeping with our goal to be environmentally conscious and reduce paper waste, we are significantly reducing the volume of paper payroll products we produce each year. The January 1, 2007 edition of Tables on Diskette (TOD) (T4143) will be published in limited quantities. Our goal is to phase out the CD version of the tables by January 2008.
New codes on T4 slip
New codes have been created for the "Other Information" area of the T4 slip. These codes are optional for 2006, but will be mandatory for 2007. See What's new for T4.
Employer-paid transit passes
Individuals are entitled to a non-refundable tax credit on their tax return for public transit passes bought for travel that occurs after June 30, 2006. A pass is eligible as long as the amount of the monthly (or longer duration) pass is included in the employee's income as a taxable benefit. See Transit passes.
Form T2200
Employed tradespersons (including apprentice mechanics) may be able to deduct the cost of eligible tools they purchased after May 1, 2006, to earn employment income as a tradesperson. Employers will be required to complete Form T2200, Declaration of Conditions of Employment, to certify that the employee must acquire these tools as a condition of, and for use in, his or her employment.
