A new year is on us and it’s a good time to start off on the right foot – especially when it comes to your payroll!
New TD1 forms for 2014 are available on Canada Revenue Agency’s website. Have employees fill them out before your first pay in 2014. Each employee should complete TWO forms – one for Federal deductions and one for Provincial. The forms can be found here – http://www.cra-arc.gc.ca/formspubs/frms/td1-eng.html .
Be aware that CPP deduction regulations have changed since January 1, 2012. Employers may have to deduct CPP for employees between the ages of 60 to 70 even if they are receiving CPP pension. Employees who work and receive CPP retirement pension now must contribute to CPP if he/she are between the ages of 60 to 65 years old. Between the ages of 65 to 70 years old the employee can file an election to STOP paying CPP and provides the employer with a completed and signed election form. If the employee completed this election form in 2013 – it remains in effect unless it has been revoked. It is the responsibility of the employer to make the deductions – if they are not done correctly you are responsible for the employee share should CRA determine they must be deducted when T4’s are filed. More information regarding this can be found on CRA’s website.