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Did You Know ?

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Many companies that offer points systems will allow you to donate your points to certain charities.  If the charity issues you an official receipt for income tax purposes, you can claim the donation as a charitable donation.

Directors are liable not only for unremitted GST/HST but also for GST/HST refunds received by a corporation that it was not entitled to.

An employer is allowed to give to each employee only two non-taxable gifts and two non-taxable awards per year and that the total of these gifts cannot exceed $500 including all taxes.  If the gifts and/or awards exceed $500 the entire fair value of the gifts and/or awards is a taxable benefit for the employee.  The entire total of the gifts and/or awards is deductible by the employer.

Canada Revenue Agency (CRA) considers the following gifts and rewards taxable benefits:
(i)         cash or near-cash gifts and awards - such as gift certificates,
(ii)        points that can be redeemed for air travel or other rewards,
(iii)       reimbursements from an employer to an employee for a gift or an award that the employee purchased,
(iv)       hospitality awards such as employer-provided team building lunches and rewards in the nature of a thank you for doing a good job,
(v)        gifts and awards given by closely held corporations to their shareholders or related persons,
(vi)       disguised remuneration such as a gift or award given as a bonus, and
(vii)manufacturer-provided gifts or awards given directly by the manufacturer to the employee of a dealer.

The CA will be introducing two cost-cutting measures to be implemented in the near future:

1.         Self-serve kiosks will replace the walk in counter and you will need to set up face-to-face appointments with CRA representatives.  The kiosks will have computers with access to CRA technical information and the ability to download forms, etc.

2.         The CRA cash window will be closed.  CRA notes that there are other payment options

WSIB and Custom Farm work Operators
A custom farm operator will be considered an employee of the Farmer for WSIB purposes unless the custom operator has WSIB optional coverage.  If a farmer does not ensure that the operator has appropriate WSIB documentation such as a WSIB Clearance Certificate or a WSIB Independent Operator Ruling, the farmer is. 

Ontario

The Ontario Health premium (OHP) is now payable at 100%, as opposed to 50% for 2004, up to a maximum of $900.

Important Information on Computer Backups

Software Updates:

1.      QuickBooks: The 2005 and 2006 versions include several fixes of issues that were identified in the 2004 and 2005 versions.

2.      Simply: the 2006 version includes several enhancements designed to make the software user-friendlier.  Some of these include:

a.       An improved backup feature that will prompt you to backup your data when you exit the software.

b.      Import Wizard for Accountants’ entries.

c.       Usability enhancements for easier navigation.

d.      New simplified account reconciliation report.

Your company's computer data files are very valuable.  However, making a backup is not a guarantee that the data can be restored when you need it. Here are some procedures that can help to safeguard your data properly:

Use high quality formatted disks. If you reuse disks, ensure you delete all old files first, before using again.

 Do daily backups and use a different backup disk for each day of the week.

Keep your month end backup until another replaces it.

Keep your year end backup stored in a safe place.

Periodically replace your backup disks.

Store backups off site.

If you use more than five disks for a backup, you should consider other methods (zip drive, CD-ROM etc.).

Test your backup files. This can be done by restoring it as a "test" data file or on another computer. 

Test your backup disks for errors.  This can be done by copying the floppy disk to your hard drive.  If there is a problem with reading the data on your disk, you’ll get an error message from your computer that will indicate it cannot read it.

You can also check your software manual for additional suggestions or check with us if there are any further questions.