CPA Year-end and New Year Requirements session on Nov. 30 2012

Staff Post
By Shelley Cahill

On November 30, I attended the Canadian Payroll Association’s 2012 session on Year-End & New Year Requirements. The binder provided to session attendees has been added to the reference collection at the Young Associates office. It contains a number of sections of information which are of interest to us and our clients:

  • Starting with changes to the maximum pensionable earning for both EI CPP: the maximum pensionable earnings for CPP is raised to$51,100 and $47,400 for EI. The 2013 CPP rate is the same, but the EI rate is going up to 1.88% from 1.83%.
  • Additionally, the CRA will, as of January 2013, stop automatically sending out paper copies of the PD7A (payroll remittance forms) to those who are already filing electronically. It is strongly recommended that all companies register for “My Account”; it will allow immediate access to payroll account.
  • In order, to set up “My Account”, you will need to have permission to access your company’s information (RC59 filled out) and your2011 Notice of Assessment from your personal return. This is the future of easy access to all your company’s CRA information.
  • After 2012, there will be no more mail out of the Web Access Code (WAC) – used to upload T4s/T4As etc. to the CRA – and the WAC will not expire. Employers must keep the final letter in a safe place for reference for following years. Also, T4 Desktop application iscancelled effective January 2013.
  • The CRA has made some improvements to the PDOC. It includes: an additional tax bracket for earners over $500k, tax exempt, year-to-date input field, and improvement to the results screens. They have also created a smart phone app for basic personal tax returns and are on Twitter.
  • Service Canada is moving away from using ePass. Moving forward, you will need to sign in using either their Sign In Partners (BMO Credit, BMO Debit, Scotiabank Online or TD Canada Trust easy Web) or by setting up a GC Key. This change took effect September 30, 2012.
  • There are changes to the way employees and employers contribute to CPP while the employee is receiving CPP payments (aged 65-70). Recommend reading on this topic: the updated information in Section 2, pages 32-35.
  • The changes to ROE Web are as follows: there is a new online credentials sign in, as mentioned in paragraph 5; ROEs filed online areno longer required to print off copies for the employees. Employees can access this information through their “My Service Canada Account”.
  • There is an interesting program that was introduced in Budget 2011; it is called Working While on Claim Pilot Project. This allows an individual to keep a portion of their EI payment in addition to their other earnings.

    Example: Blake has been laid off from his full-time job and is collecting EI benefits of $450.00/week. He has found a part-time job that pays $600.00/week.

    Under the new pilot project his EI benefits will be reduced by 50% of his additional earning, leaving him with a combined weekly income of $750.00.

    [$450 – ($600.00 x 50%)] + $600.00 = $750.00

     

  • There is a good possibility that SIN cards are going to be phased out in the near future, but at this time there is no deadline.
  • There will be changes in GST/HST over the next couple years. The first change will be British Columbia reverting back to 7% on March 31, 2013. Secondly, Nova Scotia is reducing their HST from 15% to 13% over the next 2 years, down to 14% in 2014 and 13% in 2015. Lastly, PEI will be implementing an HST of 14%, effective the date of implementation.
  • And, lastly the penny began to be phased out in the fall of 2012 and the Royal Canadian Mint will stop distribution. While the penny will retain its value, gradually cash transactions with be rounded to the nearest $0.05. Non-cash transactions, cheques, EFTs, and debit or credit card payments will still paid to the cent. There is no requirement for employers to round to the nearest $0.05 when paying by cheque or direct deposit; however, employers paying in cash will gradually have to round payments to the nearest $0.05.
  • There is a Year End and a New Year Checklist in the binder.