The Kemp Harvey Group

Do you have employees who are 65 and older? Did you know that you are now required to deduct CPP on their earnings unless an election is filed?

In the past, once an employee started collecting CPP one no longer had to contribute CPP. This is no longer the case. Employees aged 60 to 65 must continue to contribute to CPP regardless of whether they are receiving CPP benefits.

Employees aged 65 to 70 are also required to contribute to CPP unless they complete Form CPT30, Election to Stop Contributing to the Canada Pension Plan. This election takes effect the first day of the following month it is filed. The form must be submitted to the Canada Revenue Agency (CRA) and a copy must be given to the employer.

For more information visit the CRA website at: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/cpp-rpc/cpp-menu-eng.html

Canada Revenue Agency (CRA) has proposed a new Family Caregiver Amount for 2012 and subsequent years. This Family Caregiver amount will increase one of the following non-refundable tax credits by and additional $2,000 for each eligible dependant:

• spouse or common-law partner amount
• amount for an eligible dependant – amount for children under age 18 at the end of the year
• amount for infirm dependants age 18 or older – caregiver amount

You can receive this new Family Caregiver amount if you are otherwise eligible for the non-refundable tax credits listed above for a dependant and:

• for individuals age 18 and older, the individual must be dependent on you by reason of mental or physical infirmity or
• for a child under age 18, the child must have a medical or physical infirmity and as a result of that infirmity is, and is likely to be for a long continued period of indefinite duration, dependent on others for significantly more assistance in attending to the child’s needs and care when compared to children of the same age.

CRA will require a signed statement from a medical doctor. This will require information regarding the nature, commencement, and duration of the of the dependant’s impairment.

New for the 2011 taxation year is the Children’s Art Credit, which is similar to the Children’s Fitness Credit. You can claim a maximum of $500 per child for amounts paid for a prescribed program of artistic, cultural, recreational, or developmental activity.

To be eligible the child must have been under 16 at the beginning of 2011. Children with disabilities must be under 18 years old at the beginning of 2011 and are eligible for a maximum claim of $1,000 per child.

To qualify the program must be either a minimum of 8 consecutive weeks long or 5 consecutive days long. It must be supervised and suitable for children.

It must also meet one of these criteria:

•  it contributes to the development of creative skills or expertise in an artistic or cultural activity;
• it provides a substantial focus on wilderness and the natural environment;
• it helps children develop and use particular intellectual skills;
• it includes structured interaction among children where supervisors teach or help children develop interpersonal skills; or
• it provides enrichment or tutoring in academic subjects.

Please note that programs which are part of a school curriculum are not eligible.

For more information contact your local Kemp Harvey Group office.

The Grand Forks office will be closed from Saturday December 24, 2011 and will reopen on Tuesday January 3, 2012. Starting January 3, 2012 our office hours will be 8:00am – 5:00pm.

Thank you to everyone who brought in a food donation for the Community Christmas Hamper Program.

Happy Holidays!

From the Grand Forks Partners and Staff.

Are you a small business that paid less than $10,000.00 in employer’s EI premiums in 2010? You may be elibible for the Hiring Credit for Small Business (HCSB). This is a one-time credit of up to $1,000.00. The credit is calculated based on the difference between the 2010 and 2011 EI premiums paid by your business. Canada Revenue Agency will automatically calculate this credit when the 2011 T4 information return is filed.

For more infomation visit: http://www.cra-arc.gc.ca/hiringcredit/