Here at Danielle’s SOS Financial we are committed to providing you with the largest tax refunds you deserve and finding every tax deduction you are eligible for.
To make sure you don’t miss something, and to help you get every deduction and credit you can, we’ve prepared this handy checklist.
–Bookkeeping vs. Accounting–
If you’re a small business owner, you might be wondering if you need to get a bookkeeper or an accountant – or both.
And now that you understand the need for bookkeeping, you’re might be wondering, “How does it differ from accounting?”
Good question.
The words “bookkeeper” and “accountant” are often used interchangeably. However, there are some key differences that determine the main responsibilities of each role.
–Bookkeeping is a Subset of Accounting–
An accountant, professional bookkeeper, or an employee of the business can do your bookkeeping.
If you’ve just started a business, chances are you’ll be doing the bookkeeping yourself.
This is no bad thing. When launching a new business venture, it’s crucial that you have an intimate grasp of your financial situation. What better way than to do the bookkeeping yourself?
Essentially, bookkeepers take care of the day-to-day financial work.
They keep detailed and accurate financial accounts and use this financial clarity to help make informed business decisions.
–Accountants are Financial Experts–
Accountants are usually qualified, registered members of a statutory association. So they often have titles like CPA (Certified Public Accountant) or CA (Chartered Accountants).
That’s how they can charge the big bucks.
These experts will use the accounts provided by the bookkeeper. They focus on analyzing the transactions to provide financial advice.
They’ll also use the information in the accounts to file tax returns and other reports.
Whereas bookkeepers handle the day-to-day financial tasks, accountants often step in on a quarterly basis to provide advice and make adjustments.
Changes to the rules for deducting Canada Pension Plan (CPP) contributions.
In 2012, the rules for deducting CPP contributions changed. These changes do not affect the salary of an employee working in Quebec or an employee who is considered to be disabled under the CPP or QPP, nor do they affect the salary and wages of a person who has reached 70 years of age.
Year | Maximum annual pensionable earnings | Basic exemption amount | Maximum contributory earnings | Employee and employer contribution rate (%) | Maximum annual employee and employer contribution | Maximum annual self-employed contribution |
---|---|---|---|---|---|---|
2021 | $61,600 | $3,500 | $58,100 | 5.45 | $3,166.45 | $6,332.90 |
2020 | $58,700 | $3,500 | $55,200 | 5.25 | $2,898.00 | $5,796.00 |
2019 | $57,400 | $3,500 | $53,900 | 5.10 | $2,748.90 | $5,497.80 |
2018 | $55,900 | $3,500 | $52,400 | 4.95 | $2,593.80 | $5,187.60 |
2017 | $55,300 | $3,500 | $51,800 | 4.95 | $2,564.10 | $5,128.20 |
2016 | $54,900 | $3,500 | $51,400 | 4.95 | $2,544.30 | $5,088.60 |
2015 | $53,600 | $3,500 | $50,100 | 4.95 | $2,479.95 | $4,959.90 |
2014 | $52,500 | $3,500 | $49,000 | 4.95 | $2,425.50 | $4,851.00 |
2013 | $51,100 | $3,500 | $47,600 | 4.95 | $2,356.20 | $4,712.40 |
2012 | $50,100 | $3,500 | $46,600 | 4.95 | $2,306.70 | $4,613.40 |
2011 | $48,300 | $3,500 | $44,800 | 4.95 | $2,217.60 | $4,435.20 |
2010 | $47,200 | $3,500 | $43,700 | 4.95 | $2,163.15 | $4,326.30 |
The above table is available in comma-separated value (CSV) format at the following link:
Year | Maximum annual pensionable earnings | Basic exemption amount | Maximum contributory earnings | Employee and employer contribution rate (%) | Maximum annual employee and employer contribution | Maximum annual self-employed contribution |
---|---|---|---|---|---|---|
2009 | $46,300 | $3,500 | $42,800 | 4.95 | $2,118.60 | $4,237.20 |
2008 | $44,900 | $3,500 | $41,400 | 4.95 | $2,049.30 | $4,098.60 |
2007 | $43,700 | $3,500 | $40,200 | 4.95 | $1,989.90 | $3,979.80 |
2006 | $42,100 | $3,500 | $38,600 | 4.95 | $1,910.70 | $3,821.40 |
2005 | $41,100 | $3,500 | $37,600 | 4.95 | $1,861.20 | $3,722.40 |
2004 | $40,500 | $3,500 | $37,000 | 4.95 | $1,831.50 | $3,663.00 |
2003 | $39,900 | $3,500 | $36,400 | 4.95 | $1,801.80 | $3,603.60 |
2002 | $39,100 | $3,500 | $35,600 | 4.70 | $1,673.20 | $3,346.40 |
2001 | $38,300 | $3,500 | $34,800 | 4.30 | $1,496.40 | $2,992.80 |
2000 | $37,600 | $3,500 | $34,100 | 3.90 | $1,329.90 | $2,659.80 |
Year | Maximum annual pensionable earnings | Basic exemption amount | Maximum contributory earnings | Employee and employer contribution rate (%) | Maximum annual employee and employer contribution | Maximum annual self-employed contribution |
1999 | $37,400 | $3,500 | $33,900 | 3.50 | $1,186.50 | $2,373.00 |
1998 | $36,900 | $3,500 | $33,400 | 3.20 | $1,068.80 | $2,137.60 |
1997 | $35,800 | $3,500 | $32,300 | 2.925 * | $ 944.78 | $1,889.55 |
1996 | $35,400 | $3,500 | $31,900 | 2.80 | $ 893.20 | $1,786.40 |
1995 | $34,900 | $3,400 | $31,500 | 2.70 | $ 850.50 | $1,701.00 |
1994 | $34,400 | $3,400 | $31,000 | 2.60 | $ 806.00 | $1,612.00 |
1993 | $33,400 | $3,300 | $30,100 | 2.50 | $ 752.50 | $1,505.00 |
1992 | $32,200 | $3,200 | $29,000 | 2.40 | $ 696.00 | $1,392.00 |
1991 | $30,500 | $3,000 | $27,500 | 2.30 | $ 632.50 | $1,265.00 |
1990 | $28,900 | $2,800 | $26,100 | 2.20 | $ 574.20 | $1,148.40 |
Footnote * For 1997, the CPP rate was adjusted to 3.0% with a payment on filing a return (max. $969).
Year | Maximum annual pensionable earnings | Basic exemption amount | Maximum contributory earnings | Employee and employer contribution rate (%) | Maximum annual employee and employer contribution | Maximum annual self-employed contribution |
---|---|---|---|---|---|---|
1989 | $27,700 | $2,700 | $25,000 | 2.10 | $525.00 | $1,050.00 |
1988 | $26,500 | $2,600 | $23,900 | 2.00 | $478.00 | $ 956.00 |
1987 | $25,900 | $2,500 | $23,400 | 1.90 | $444.60 | $ 889.20 |
1986 | $25,800 | $2,500 | $23,300 | 1.80 | $419.40 | $ 838.80 |
1985 | $23,400 | $2,300 | $21,100 | 1.80 | $379.80 | $ 759.60 |
1984 | $20,800 | $2,000 | $18,800 | 1.80 | $338.40 | $ 676.80 |
1983 | $18,500 | $1,800 | $16,700 | 1.80 | $300.60 | $ 601.20 |
1982 | $16,500 | $1,600 | $14,900 | 1.80 | $268.20 | $ 536.40 |
1981 | $14,700 | $1,400 | $13,300 | 1.80 | $239.40 | $ 478.80 |
1980 | $13,100 | $1,300 | $11,800 | 1.80 | $212.10 | $ 424.80 |
Year | Maximum annual pensionable earnings | Basic exemption amount | Maximum contributory earnings | Employee and employer contribution rate (%) | Maximum annual employee and employer contribution | Maximum annual self-employed contribution |
---|---|---|---|---|---|---|
1979 | $11,700 | $1,100 | $10,600 | 1.80 | $190.80 | $381.60 |
1978 | $10,400 | $1,000 | $ 9,400 | 1.80 | $169.20 | $338.40 |
1977 | $ 9,300 | $ 900 | $ 8,400 | 1.80 | $151.20 | $302.40 |
1976 | $ 8,300 | $ 800 | $ 7,500 | 1.80 | $135.00 | $270.00 |
1975 | $ 7,400 | $ 700 | $ 6,700 | 1.80 | $120.60 | $241.20 |
1974 | $ 6,600 | $ 700 | $ 5,900 | 1.80 | $106.20 | $212.40 |
1973 | $ 5,600 | $ 600 | $ 5,000 | 1.80 | $ 90.00 | $180.00 |
1972 | $ 5,500 | $ 600 | $ 4,900 | 1.80 | $ 88.20 | $176.40 |
1971 | $ 5,400 | $ 600 | $ 4,800 | 1.80 | $ 86.40 | $172.80 |
1970 | $ 5,300 | $ 600 | $ 4,700 | 1.80 | $ 84.60 | $169.20 |
Year | Maximum annual pensionable earnings | Basic exemption amount | Maximum contributory earnings | Employee and employer contribution rate (%) | Maximum annual employee and employer contribution | Maximum annual self-employed contribution |
---|---|---|---|---|---|---|
1969 | $5,200 | $600 | $4,600 | 1.80 | $82.80 | $165.60 |
1968 | $5,100 | $600 | $4,500 | 1.80 | $81.00 | $162.00 |
1967 | $5,000 | $600 | $4,400 | 1.80 | $79.20 | $158.40 |
1966 | $5,000 | $600 | $4,400 | 1.80 | $79.20 | $158.40 |
Reporting the assessable earnings paid to your workers for the current year and estimate of what you expect to pay in the upcoming year will ensure that you have the correct WCB-Alberta coverage in place. Through filing your annual return, the information you provide will help make sure you are paying the correct premium amount and receiving a fair and accurate invoice.
New this year: You will no longer receive an annual return PIN letter in the mail. Just log into myWCB and select file my annual return starting Jan. 1, 2021. It’s that easy!
To sign up, go to myWCB. Click Sign up now and then follow the steps to set up a profile. You will need to select the ‘Account Administrator’ role and answer one of three key fact questions to authenticate your access.
What’s new this year [PDF, 0.29MB]
Date of distribution: January 5, 2021
TRANSMITTAL SHEET No: 01 – 2021 January 5, 2021
WHAT’S CHANGED (Please read the policy documents for complete information).
Please note that policy changes since the last issue are indicated by shaded text or shading in the left margin.
Document | Old (remove) | New |
---|---|---|
03-01, General | Part II, Application 6 | Policy 03-01, Part II, Application 6 [PDF, 0.52MB] (issue date January 5, 2021) |
04-01, Establishing Net Earnings | Part II, Application 4 | Policy 04-01, Part II, Application 4 [PDF, 0.18MB] (issue date January 5, 2021) |
Part II, Addendum A | Policy 04-01, Part II, Addendum A [PDF, 0.06MB] (issue date January 5, 2021) | |
Part II, Addendum B | Policy 04-01, Part II, Addendum B [PDF, 0.09MB] (issue date January 5, 2021) | |
04-04, Permanent Disability | Part II, Addendum A | Policy 04-04, Part II, Addendum A [PDF, 0.04MB] (issue date January 5, 2021) |
04-07, Services for Workers with Severe Injuries | Part II, Addendum A | Policy 04-07, Part II, Addendum A [PDF, 0.07MB] (issue date January 5, 2021) |
Part II, Addendum B | Policy 04-07, Part II, Addendum B [PDF, 0.03MB] (issue date January 5, 2021) | |
04-08, Fatalities | Part II, Addendum A | Policy 04-08, Part II, Addendum A [PDF, 0.19MB] (issue date January 5, 2021) |
Part II, Addendum B | Policy 04-08, Part II, Addendum B [PDF, 0.12MB] (issue date January 5, 2021) | |
04-10, Other Home Services | Part II, Addendum A | Policy 04-10, Part II, Addendum A [PDF, 0.06MB] (issue date January 5, 2021) |
06-01, Employers and Workers | Part I | Policy 06-01, Part I [PDF, 0.26MB] (issue date January 5, 2021) |
Part II, Application 1 | Policy 06-01, Part II, Application 1 [PDF, 0.18MB] (issue date January 5, 2021) | |
Part II, Application 2 | Policy 06-01, Part II, Application 2 [PDF, 0.37MB] (issue date January 5, 2021) | |
Part II, Application 3 | Policy 06-01, Part II, Application 3 [PDF, 0.31MB] (issue date January 5, 2021) | |
Part II, Application 4 | Policy 06-01, Part II, Application 4 [PDF, 0.18MB] (issue date January 5, 2021) | |
Part II, Application 5 | Policy 06-01, Part II, Application 5 [PDF, 0.23MB] (issue date January 5, 2021) | |
06-02, Optional Coverage | Part I | Policy 06-02, Part I [PDF, 0.28MB] (issue date January 5, 2021) |
Part II, Application 1 | Policy 06-02, Part II, Application 1 [PDF, 0.25MB] (issue date January 5, 2021) | |
Part II, Application 2 | Policy 06-02, Part II, Application 2 [PDF, 0.33MB] (issue date January 5, 2021) | |
06-03, Premiums | Part I | Policy 06-03, Part I [PDF, 0.25MB] (issue date January 5, 2021) |
Part II, Application 1 | Policy 06-03, Part II, Application 1 [PDF, 0.27MB] (issue date January 5, 2021) | |
Part II, Application 2 | Policy 06-03, Part II, Application 2 [PDF, 0.16MB] (issue date January 5, 2021) | |
Part II, Application 3 | Policy 06-03, Part II, Application 3 [PDF, 0.29MB] (issue date January 5, 2021) | |
Part II, Application 5 | Policy 06-03, Part II, Application 5 [PDF, 0.31MB] (issue date January 5, 2021) | |
07-01, Classification | Part I | Policy 07-01, Part I [PDF, 0.26MB] (issue date January 5, 2021) |
Part II, Application 1 | Policy 07-01, Part II, Application 1 [PDF, 0.21MB] (issue date January 5, 2021) | |
Part II, Application 2 | Policy 07-01, Part II, Application 2 [PDF, 0.20MB] (issue date January 5, 2021) | |
Part II, Application 3 | Policy 07-01, Part II, Application 3 [PDF, 0.16MB] (issue date January 5, 2021) | |
07-02, Experience Records | Part I | Policy 07-02, Part I [PDF, 0.26MB] (issue date January 5, 2021) |
Part II, Application 1 | Policy 07-02, Part II, Application 1 [PDF, 0.18MB] (issue date January 5, 2021) | |
Part II, Application 4 | Policy 07-02, Part II, Application 4 [PDF, 0.27MB] (issue date January 5, 2021) | |
Part II, Application 5 | Policy 07-02, Part II, Application 5 [PDF, 0.15MB] (issue date January 5, 2021) | |
Part II, Application 6 | Policy 07-02, Part II, Application 6 [PDF, 0.16MB] (issue date January 5, 2021) | |
07-03, Financial Administration of Safety Association Grants | Part I | Policy 07-03, Part I [PDF, 0.23MB] (issue date January 5, 2021) |
Part II, Application 1 | Policy 07-03, Part II, Application 1 [PDF, 0.16MB] (issue date January 5, 2021) | |
Appendix E, Compensation Tables | Entire Document | 2021 Compensation Tables: For accidents on or after April 01, 2003 [PDF, 0.20MB] For accidents on or before March 31, 2003 [PDF, 0.20MB] (issue date January 5, 2021) |
Appendix F, Minimum Permanent Disability Awards & Dependants’ Pensions, with Cost-of-Living Adjustments (COLA), Minimum Personal Coverage, Maximum Annual Assessable Earnings & Maximum Annual Compensable Earnings | Entire Document | Appendix F [PDF, 0.28MB] (issue date January 5, 2021) |
The Canada Revenue Agency (CRA) announced new reporting requirements for all Canadian employers who issue T4 slips.
In connection with the COVID-19 support programs launched in 2020, employers will have to submit more detailed T4 information, regardless of whether they applied for the various wage subsidy programs or not.
For more information on the new reporting requirements, including the new Form PD27, read our detailed summary.
All Canadian employers who issue a T4 slip, Statement of Remuneration Paid, will have additional reporting requirements for the 2020 calendar year. These additional reporting requirements will help the Canada Revenue Agency (CRA) validate payments under the various COVID-19 government programs including:
These new reporting requirements apply to all employers, regardless of whether they applied for these programs or not.
For the 2020 calendar year, in addition to reporting employment income in Box 14 or Code 71, the new information codes below should be used to report employment income and retroactive payments made in the following periods:
E.g. If you are reporting employment income for the period of April 25 to May 8, payable on May 14, use code 58.
Employers eligible for the TWS are required to complete and submit Form PD27, 10-percent TWS Self Identification Form for Employers, to the CRA. This includes employers who have already claimed the TWS and those who haven’t but still intend to, as well as employers who qualified for both the TWS and the CEWS but elected to claim a TWS of 10 percent or less (including a claim of zero). However, I
The CRA will use this form to reconcile the TWS remittances to the amounts reported on the 2020 T4 Summary. Employers can also instruct the CRA on how they want to apply any balances of TWS available on the Form PD27.
The self-identification form can be submitted online, by mail or fax. The form requires the following information to be provided:
There is currently no due date for Form PD27, however employers are encouraged to complete and submit this form as soon as possible to avoid receiving a discrepancy notice from the CRA.
As the T4 reporting deadline approaches, it is important to be aware of the new reporting obligations associated with the various government wage subsidy programs introduced in response to COVID-19. These new reporting requirements will necessitate employers to spend additional time to gather information and ensure the proper disclosures are made for each employee. Detailed payroll information is needed and if not readily available could be an onerous task.
For more information on the new T4 reporting requirements or assistance with completing Form PD27, please contact us.
Calculation details for claim periods 11 to 13 are now available.
Changes to CEWS as of January 6, 2021:
Changes to CEWS as of November 19, 2020 (Bill C-9):
Changes to CEWS as of claim period 5 (Bill C-20):
For claim periods 1 to 4 (Bill C-14):