Davidow & Nelson Blog

When to Apply?: CPP

While the normal age to begin receiving regular CPP is 65, individuals can apply to start receiving earlier at a cost, or later for a greater benefit: – If the individual starts before age 65, payments will decrease by 0.6% each month (or by 7.2% per year), up to a maximum reduction of 36% if… Read more »

TAX TICKLERS… some quick points to consider…

– CRA has opined that U.S. Economic Impact payments received by residents of Canada are not taxable in Canada. – 1,252,830 Canada Emergency Wage Subsidy (CEWS) applications have been approved for a total value of $41.12 billion (as of October 4, 2020). – On October 9, 2020, the Government announced that the CEWS program will… Read more »

Making it Look Professional: VIDEO CONFERENCING TIPS

In an April 29, 2020 CPA Canada article, the author provided a variety of tips for professional meetings conducted by online video conference, which has become much more common during the COVID-19 pandemic. Among the tips discussed, the author recommended the following: – having a meeting host to own the meeting, set the agenda, and… Read more »

Supplemental Unemployment Benefit (SUB) Plans: TEMPORARY LAY-OFFS

The purpose of a SUB plan is to allow an employer to make supplemental payments to Employment Insurance (EI) benefits, without eroding those EI benefits. As payments under a registered SUB plan are not insurable earnings, EI premiums are not deducted. In order to be eligible, SUB plans must be registered with Service Canada before… Read more »

Correcting Errors: CHANGES TO PAYROLL

What if I make a clerical, administrative, or system error resulting in a salary overpayment? On April 6, 2020, CRA released the updated guide RC4120 Employers’ Guide – Filing the T4 slip and Summary providing detailed instructions on these such issues. The employer may elect to have the employee repay the net amount (gross amount… Read more »

2020 Personal Income Tax Return Checklist

SECTIONS: A. Information – All Clients Must Provide B. Additional Information – New Clients Must Provide C. Questions to Answer D. Other ___________________________________________________________________________________________ 2020 was an extraordinary year like no other. Due to the significant changes from the COVID-19 pandemic, there are numerous tax issues to be aware of this year. For example, many individuals… Read more »

YEAR-END TAX PLANNING

December 31, 2020 is fast approaching… see below for a list of tax planning considerations. Please contact us for further details or to discuss whether these may apply to your tax situation. SOME 2020 YEAR-END TAX PLANNING TIPS INCLUDE: 1) Certain expenditures made by individuals by December 31, 2020 will be eligible for 2020 tax… Read more »

Voluntary Departure: EMPLOYMENT INSURANCE (EI)

In a June 5, 2020 Federal Court of Appeal case, the Court reviewed Service Canada’s decision to deny EI benefits on the basis that the individual left his employment voluntarily. The individual argued that although it was his decision to leave, he had just cause (which would allow him to receive EI). To have just… Read more »

Fully or Partially Taxable?: UNREASONABLE ALLOWANCES

In a May 15, 2020 Federal Court of Appeal case, the Court reviewed whether various allowances paid to employees of the taxpayer were subject to CPP and EI. This required determining whether the allowances were taxable. The Tax Court of Canada had previously ruled that some of the allowances were partially taxable, while others were… Read more »

Undoing an Application: OAS DEFERRAL

As of July 1, 2013, where receipt of Old Age Security (OAS) is delayed, the monthly pension is increased by a factor of 0.6% for each month deferred, to a maximum increase of 36% (60 months, commencing receipt at age 70). In a March 25, 2020 Federal Court case, the Court reviewed Service Canada’s decision… Read more »