Logan Katz LLP, Chartered Accountants

January Learning Kurve

2012-02-06T14:05:00.000-08:00

Check out our monthly electronic newsletter, designed to support your professional and personal financial and related interests with concise information on a select topic, as well as updates on activities at Logan Katz LLP. We hope you enjoy The Learning Kurve and welcome any suggestions and comments you might have on its content or format.

2012-01-09T08:53:00.000-08:00

2011-12-15T12:04:00.000-08:00

We had a wonderful turnout at this morning’s BreakfastSeminar “An Economic Outlook for 2012” put on by ourselves and RBC Royal Bank.

Ms. Dawn Desjardins, Assistant Chief Economist of RBC RoyalBank, flew in from Toronto to speak at the event. She had much to say about theglobal economy, but also focused in on what is affecting our nation.

According to Ms. Desjardins there has been modest growth inthe U.S. economy. The growth in the employment sector has also shownappreciation, however, at a slow and gradual pace.

Interest rates have remained low, and although they areexpected to rise it will not be significant, said Ms. Desjardins.

She also noted that the debt-to-income ratio in Canada isnow at 150%, which raised the question “Will we as Canadians be able to serviceit, especially if interest rates start to rise?” The housing affordability wasa topic up for discussion and Ms. Desjardins demonstrated graphically that forOntario the housing costs-to-income ratio currently sits at around 42%.

Canadian exports to the U.S. are more or less stableaccording to Ms. Desjardins as just over 50% are commodity based.

Ms. Desjardins said that, although it will take a few years,the budget is expected to be balanced.

In general, Canada’s economy is expected to grow, but at aslow pace in 2012.

Where do you see Canada’s economy going in 2012?

2011-12-15T08:51:00.000-08:00

Click here for important and up-to-date tax information for U.S. citizens residing in Canada.

2011-12-07T10:15:00.001-08:00

Second Annual Holiday FoodDrive

With the holiday seasonis full swing, we are reminded of those less fortunate than ourselves. Thespirit of giving fills our hearts as we proudly announce the launch of our secondannual Holiday Food Drive to support the Ottawa Food Bank!

We encourage all ourclients to bring in a donation of non-perishable food or household products ontheir next visit to our office.

We thank you for yoursupport. Together, we continue to make adifference in our community!

2e édition de la collecte d’alimentsdes fêtes

La saison des fêtes étant parminous, il est important de se rappeler que tous n’ont pas la bonne fortuned’avoir autant de chances et d’opportunités que nous. C’est dans cet esprit degénérosité que nous annonçons le lancement de notre deuxième collected’aliments non-périssables au profit de la Banque alimentaire d’Ottawa.

Lors de votre prochaine visite chezLogan Katz, nous vous encourageons à apporter avec vous quelques donsd’aliments non-périssables ou de produits hygiéniques, afin que nous puissionsfaire un geste marquant.

Nous vous remercions de votre appui.C’est ensemble que nous pouvons apporter une contribution à notre communauté!

2011-11-23T14:49:00.001-08:00

2011-11-18T08:13:00.001-08:00

LoganKatz LLP wants to bring meaningful, current information to our clients andcontacts. The Pooled Registered Pension Plan (PRPP) legislation announcementthis week is summarized in the article below. We are following the PRPP issueand will provide further details once they are available.

POOLEDREGISTERED PENSION PLAN ACT

The federal government introduced legislation in Parliamentyesterday outlining the federal portion of the proposed Pooled RegisteredPension Plan (PRPP). The framework for the PRPP came about in December2010 after prior research showed that certain Canadian households are notsaving adequately for retirement.

The PRPP would be designed as a voluntary, administrativelylow-cost option to meet Canadians’ retirement income needs, especially to thosewho do not have access to an employer sponsored pension plan, including thosewho are self-employed.

Regulated financial institutions would act as third partyadministrators and take over most of the responsibilities that are normallyheld by the employer for traditional pension plans, acting in a fiduciary roleto plan members, and disclosing plan provisions and investment performance inplain language. The administrators of PRPPs would be responsible for creating alow-cost option for a large group along with a number of other manageableinvestment options.

Employers would be responsible for the selection of aspecific plan and the enrolment of their employees who choose to participate.As PRPP’s would be defined contribution pension plans, employers would select adefault contribution rate, which would designate the amount to be deducted on aregular basis from participating employees’ paycheques. It will be decided on ajurisdictional basis whether employers are required to make contributions.

The plan would also carry fewer restrictions on portabilitymeaning it could be easily moved to another retirement savings vehicle or bestopped altogether.

The framework is still awaiting provincial enablinglegislation and modifications to the tax rules by the federal government tobecome fully operational.

Informationretrieved from http://www.fin.gc.ca/activty/pubs/pension/prpp-irpac-eng.asp

2011-11-16T12:33:00.000-08:00

New Hiring Credit for Small Businesses

2011-11-13T17:36:00.000-08:00

The 2011 Federal Budget introduced a program called the Hiring Credit for Small Businesses (HCSB) to assist small businesses by providing a credit to lighten the Employment Insurance (EI) premiums payable.

The program’s aim is to encourage hiring or to help businesses to retain staff. This program is designed to include a credit to small businesses that increase their payrolls over those paid in 2010.

This is a one-time credit of up to $1,000 available to employers whose premiums were at or below $10,000 in 2010.

The credit is calculated as the difference between the EI premiums paid for 2010 (under $10,000) and the EI premiums paid in 2011. There is no election required or special form to complete as the Canada Revenue Agency (CRA) will automatically calculate the credit when an eligible employer’s 2011 T4 information return is filed. The 2011 T4 information return(s) must be filed before January 1, 2015. No HCSB will be allowed based on a T4 information return filed after that date. The 2011 T4 information return otherwise has a filing deadline of February 29, 2012.

Once CRA has calculated your credit, they will apply it to any outstanding balance on your payroll account(s) and then transfer the remaining credit to the current year.

You are eligible for this credit if you meet all of the following conditions:

you deducted EI premiums from the remuneration you paid to your employees, (or paid the worker’s share of EI premiums for barbers, hairdressers, fishers, or drivers of taxis and other passenger-carrying vehicles) and you remitted these premiums (along with your share of EI premiums) to your payroll (RP) account;
you reported the income and deductions on a T4 slip and have filed this information on your RP account for 2010 and 2011;
the total of employer EI premiums you paid for 2010 was $10,000 or less; and
your total employer EI premiums increased in 2011.

Individuals who have chosen to pay EI premiums on their self-employed earnings are not eligible for the HCSB.

If you sold or closed your business in 2010, you will not be eligible to receive the HCSB.

If you started your business in 2011 and received a new business number, you will receive the HCSB. CRA will use a zero value for your 2010 employer’s share of EI premiums when they calculate the credit.

Employers are not permitted to short remit their 2011 payroll remittances by the amount of the HCSB they think they will receive.

If you receive a HCSB payment, you have to claim that amount as income or reduce your EI expense when you file your business return, even is some or all of this credit paid off a debt.

The credit is available for both new hires and increases in wages for existing employees as the credit is merely determined by the change in the overall level of EI premiums from 2010 to 2011.

There does not appear to be any restriction to only commercial concerns. Providing they meet the eligibility conditions, not for profit organizations and registered charities can take advantage of the credit.