Legislative roundup: Changes in payroll laws and regulations from across Canada

Personal amounts allowed to be claimed on many province’s personal tax credits returns increased • TFSA maximum contribution increased • HSF tax relief for employers hiring seniors • Quebec compensation tax partly eliminated

CANADA

TFSA maximum contribution to increase in 2013: Ministers

The annual contribution for tax-free savings accounts (TFSAs) will increase by $500 to $5,500 in 2013, said the Canada Revenue Agency.

Since the federal government made TFSAs available in 2009, Canadians have been able to earn tax-free investment income on contributions of up to $5,000 per year. Canadians can earn tax-free income through a range of investment products.

ALBERTA

Reminder: MSP premiums rising

In 2013, the government plans to increase medical services plan (MSP) premium rates. For a single person, the maximum premium is scheduled to increase from $64 per month to $66.50. The maximum premium for a family of two will increase from $116.00 per month to $120.50 and for a family of three or more it will increase from $128 per month to $133.BRITISH COLUMBIA

TD1BC amounts to change in 2013

For 2013, personal amounts claimed on a British Columbia Personal Tax Credits Return (TD1BC) have been revised to reflect an indexing factor of 1.5 per cent.

MANITOBA

TD1MB amounts change in 2013

In 2013, the province's basic personal amount, spouse or common-law partner amount and eligible dependant amount claimed on a Manitoba Personal Tax Credits Return (TD1MB) increased from $8,634 to $8,884.

NEW BRUNSWICK

TD1NB amounts to change in 2013

For 2013, personal amounts claimed on a New Brunswick Personal Tax Credits Return (TD1NB) have been revised to reflect an indexing factor of two per cent.

NEWFOUNDLAND AND LABRADOR

TD1NL amounts to change in 2013

For 2013, personal amounts claimed on a Newfoundland and Labrador Personal Tax Credits Return (TD1NL) have been revised to reflect an indexing factor of 2.6 per cent.

NOVA SCOTIA

Some TD1NS amounts to change in 2013

For 2013, maximum amounts that employees may claim for three non-refundable tax credits: the spouse or common-law partner tax credit and the eligible dependant tax credit would rise from $7,201 to $8,481 and the maximum amount for the disability tax credit would increase from $5,035 to $7,341.

ONTARIO

TD1ON amounts to change in 2013

For 2013, personal amounts claimed on an Ontario Personal Tax Credits Return (TD1ON) have been revised to reflect an indexing factor of 1.8 per cent.

PRINCE EDWARD ISLAND

No changes to TD1PE for 2013

For 2013, personal amounts claimed on a Prince Edward Island Personal Tax Credits Return (TD1PE) remain the same as they were in 2012.

QUEBEC

Reminder:HSF tax relief for employers hiring seniors

Beginning in 2013, the provincial government says it will reduce Health Services Fund (HSF) contributions for employers who hire workers who are at least 65 years of age.

The measure, proposed in this year’s provincial budget, would allow private-sector employers to claim a reduction in their HSF contributions for salaries paid to workers age 65 and over that exceed $5,000, excluding taxable benefits pertaining to previous employment.

The proposal would be phased in between 2013 and 2016, with the maximum salary ceiling per worker gradually increasing as follows: $4,000 in 2013; $5,000 in 2014; $8,000 in 2015 and $10,000 in 2016.

Compensation tax partly eliminated

For 2013, Quebec has partially eliminated the compensation tax paid by financial institutions that are not corporations.

The original one per cent tax is abolished as of Jan. 1, for these businesses; however, the temporary 0.5 per cent increase announced in the 2010 provincial budget that applies to salaries and wages that financial institutions pay will apply until March 31, 2014.

Reminder: Change to payroll contributions for labour fund shares

For 2013, the value of a taxable benefit that results from amounts an employer pays to buy shares or a fraction of a share issued by certain labour funds is no longer included in the definition of an employee`s base wage.

This means the value of the taxable benefit is no longer subject to employee and employer Quebec Pension Plan contributions and employer contributions for the Health Services Fund, Commission des normes du travail, Commission de la santé et de la sécurité du travail and the compensatory tax (for financial institutions), as well as for payroll used to determine the employer’s participation in the Workforce Skills Development and Recognition Fund. The taxable benefit is not subject to EI or QPIP premiums.

SASKATCHEWAN

TD1SK amounts to change in 2013

For 2013, personal amounts claimed on a Saskatchewan Personal Tax Credits Return (TD1SK) have been revised to reflect an indexing factor of two per cent.

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