Indiana Payroll Serv… on EP Accounting Fall Newsle…
I came across a very interesting video from CTV News’ Pat Foran. It is about Ontario’s new tax system, wherein the tax returns will be issued monthly as opposed to being issued in a single lump sum payment. Pat Foran questions the finance minister re. this new policy.
Here is the link to the video. Take a few minutes to watch it and then formulate your own opinion.
Ontario has a tax system: returns will be issued monthly instead of in a lump sum. Pat Foran asks the finance minister, ‘Did the government drop the ball on this?’
The CRA has some changes in store for us this coming year.
As of January 2012, the maximum CPP pension for 2012 will be $986.67 per month. This figure is derived from the average of maximum pensionable earnings for last five years x 25% / 12 months. These figures generate a premium increase which, at the highest level, reaches $2306.70 or $192.23 per month. Both the employer and employee must contribute; proprietors will pay $384.45 per month or, when their contributory earnings reach $50,100, $4613.40 per month.
The basic exemption amount remains unchanged at $3,500, as it has not been indexed to inflation for several years. This means that premiums have actually increased by four per cent. Meanwhile the expected rate of CPI inflation for 2012 has just been announced as well: two per cent. That is quite a hike.
The following is a guest post by a co-author of the iMark Blog, Dee.
Particularly interesting for me was Chapter five, titled Paupery. I will admit, at first I found the conversation in this chapter contrived and stilted, especially compared with the rest of the book which seems to flow so easily. This might have been because the rest of the book was more of a narrative whereas this chapter was almost entirely dialogue. But then again what do I know about writing? Not as much as I know about money, I will say that much. This brings me to why I enjoyed this chapter so much! The subject of this chapter is finances and money…well, sort of.
Dublanica utilizes this chapter to opine that waiting tables is akin to gambling. Waiters can make next to nothing in any given night or they can make half of their month’s rent. These ups and downs can be addicting, claims Dublanica. On top of that, Dublanica explains how waiting on the rich can take its toll on a waiter’s wallet. The susceptibility to gain an appreciation for expensive foods and wine is ever present. Another issue that waiters face, one that I find particularly intriguing, is tipping.
Most tips are given cash in hand. It is up to the waiter to be honest and, come tax time, declare these tips as part of their income. Tips that are not given in cash have a paper trail so the honour system does not come into play. The full amount from tips that are doled out via credit or debit need to be declared. In either case, it is very rare that a waiter is allowed to keep 100% of his or her tips. Often, a portion is given to the host or hostess, dishwashers, etc. This means that wait staff must pay taxes on money that they are not even earning!
So here is how Dublanica was able to avoid this problem. His employer had all employees enter tip amounts in a ledger and then surrender them to management at the end of the shift. This is opposed to taking the tips home every night. The tips were then divvied up as previously agreed and then doled out with the pay cheque every week. This way the wait staff only had to pay the taxes on the actual amount awarded.
This is how some restaurants deal with tax issues. Do you know of any other method? If so, please leave a comment.
I am looking forward to reading Dublanica’s next book, Keep the Change. In this book Dublanica has travelled across the US to interview people who rely on tips. Obviously tipping is a subject that interests most small business accountants very much.
Attention all academic scholars!
Starting in the September 2011 academic year, the CCRW (Canadian Council on Rehabilitation and Work) will be awarding six scholarships in the amount of $2,500.
According to the website, a qualified scholarship applicant must:
- Be a person with a long-term and reoccurring disability that restricts the ability of a person to perform the activities necessary to participate in educational activities. This limitation is expected to remain with the person for life.
- Be a high school student entering the first year of studies in a Canadian post-secondary institution that is recognized by the Association of Universities and Colleges of Canada at the undergraduate level.
- Be a full-time student.
- Not be involved in the selection process or be a close family member of any scholarship selection committee member.
- Not have been awarded one of these CCRW Scholarships in the past. The scholarships are also non-renewable.
Applications will be evaluated on a number of criteria, including, but not limited to: community involvement, extra-curricular participation, overall approach to overcoming barriers, academic performance and educational goals.
About the CCRW
The CCRW is a Canadian network of organizations and individuals, devoted to promoting, developing and supporting “meaningful and equitable employment of persons with disabilities”. This is achieved through strategic partnerships and knowledge sharing.
The CCRW provides employment services for people with disabilities and assists businesses committed to promoting an equity and inclusion-centric workplace.
Learn about tax credits for Canadians with disabilities.