CRA announces prescribed annual interest rates • Reminder: Remembrance Day a statutory holiday in some jurisdictions • New Brunswick sets 2014 maximum insurable earnings
CANADA
CRA announces prescribed annual interest rates
The Canada Revenue Agency (CRA) has announced the prescribed annual interest rates that will apply to any amounts owed to the CRA and any amounts it owes to individuals and corporations.
These rates are calculated quarterly in accordance with applicable legislation and will be in effect from Oct. 1 to Dec. 31. All interest rates have increased by one percentage point since last quarter, except for the rate for corporate taxpayers pertaining to interest on loans and indebtedness.
The following changes will take place:
• The interest rate charged on overdue taxes, Canada Pension Plan (CPP) contributions and employment insurance premiums will be six per cent.
• The interest rate to be paid on corporate taxpayers’ overpayments will be two per cent.
• The interest rate to be paid on non-corporate taxpayers overpayments will be four per cent.
• The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be two per cent.
• The interest rate used to calculate corporate taxpayers loans or indebtedness will be 5.02 per cent.
Reminder: Remembrance Day a statutory holiday in some jurisdictions
Nov. 11 is a statutory holiday under employment/labour standards law in the following jurisdictions: Alberta, British Columbia, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nunavut, Prince Edward Island, Saskatchewan and Yukon and under the Canada Labour Code.
In Manitoba and Nova Scotia, employers are not required to pay employees who do not work on Remembrance Day. In Nova Scotia, employees who do work on the holiday are entitled to another day off with pay. In Manitoba, employees who work on Nov. 11 must be paid the same as they would for working on a statutory holiday.
NEW BRUNSWICK
New Brunswick sets 2014 maximum insurable earnings
The 2014 maximum assessable/insurable earnings for New Brunswick have been set at $60,100. The maximum is currently $59,500.
Quebec proposes 2014 maximum insurable earnings
Quebec has proposed to set its maximum assessable/insurable earnings for 2014 at $69,500, up from $67,500 this year.
CORRECTION
Ontario 2014 maximum insurable earnings
In the October 2013 issue of Canadian Payroll Reporter, the 2014 maximum insurable earnings for Ontario was incorrectly reported. The WSIB has set the amount at $84,100. The amount for 2013 was set at $83,200.
