The Saskatchewan Budget included information on a proposed tax credit for employees in specified trades who have to buy and maintain tools for their job.
Under the proposal, included in the 2006-2007 budget, release on April 6, 2006, eligible employees would claim a tax credit (made up of two parts: a one-time credit for employees entering a trade and an annual credit for maintenance and replacement costs) when they file their personal income tax returns. The proposed measure would apply retroactively to January 1, 2006.
Since the employees claim the tax credit on their tax return, we did not consider the credits to be a payroll-related issue; however, we have since found out that the provincial government will require both the employee claiming the credit and his or her employer to complete a provincial tax form similar to the federal form T2200, Declaration of Condition of Employment, to verify that a legitimate employment relationship exists, the employee is working in one of the specified trades, and that the tools are a condition of employment.
The trades covered would include: hair stylist, bricklayer; drywaller; roofer; insulator; glazier; painter; floor covering installer; plumber; pipe fitter; carpenter; electrician; sheet metal worker; boiler maker; iron worker; auto body repairer; vehicle mechanics; and heavy-duty mechanics.
Since the employees claim the tax credit on their tax return, we did not consider the credits to be a payroll-related issue; however, we have since found out that the provincial government will require both the employee claiming the credit and his or her employer to complete a provincial tax form similar to the federal form T2200, Declaration of Condition of Employment, to verify that a legitimate employment relationship exists, the employee is working in one of the specified trades, and that the tools are a condition of employment.
The trades covered would include: hair stylist, bricklayer; drywaller; roofer; insulator; glazier; painter; floor covering installer; plumber; pipe fitter; carpenter; electrician; sheet metal worker; boiler maker; iron worker; auto body repairer; vehicle mechanics; and heavy-duty mechanics.
