Announcements

 

Get caught up with Andrews & Co.

Whether it's tax season or welcoming new team members, we have a lot going on at our firm. We'll keep you connected by sharing our ongoing news.

  • COVID-19
    Posted

    As a firm, we have been actively monitoring the latest status of COVID-19. We are not booking meetings at this time, however our office is open and we are here to help. We want to ensure you that we will continue to support you through this pandemic. We have created an information summary outlining the governments economic response plan released on March 18th. If you are in need of any help, please reach out to us at info@andrews.ca or 613-837-8282.

    DOWNLOAD THE COVID-19 GUIDE NOW

    As a firm, we have been actively monitoring the latest status of COVID-19. We are not booking meetings at this time, however our office is open and we are here to help. We want to ensure you that we will continue to support you through this pandemic. We have created an information summary outlining the governments economic response plan released on March 18th. If you are in need of any help, please reach out to us at info@andrews.ca or 613-837-8282.

    DOWNLOAD THE COVID-19 GUIDE NOW

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  • 2019 Personal Tax Checklist
    Posted

    Our 2019 Personal Income Tax Return Checklist is now available to download.

    • Visit our resources tab for more information

    Our 2019 Personal Income Tax Return Checklist is now available to download.

    • Visit our resources tab for more information
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  • Spring Career Fairs 2020
    Posted

    Shanley McCrann and Ashley Mouland have spent the past two weeks attending Ottawa U and Carleton’s Spring Career Fairs. It was a pleasure meeting many new faces! For current career opportunities please visit our website under our career section or email Human Resources at smccrann@andrews.ca.

    Shanley McCrann and Ashley Mouland have spent the past two weeks attending Ottawa U and Carleton’s Spring Career Fairs. It was a pleasure meeting many new faces! For current career opportunities please visit our website under our career section or email Human Resources at smccrann@andrews.ca.

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  • International Women’s Day
    Posted

    Happy International Women’s Day from Andrews & Co.

    Happy International Women’s Day from Andrews & Co.

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  • T4/T5 Deadline 2020
    Posted

    The T4/T5 filing deadline is fast approaching!

    A friendly reminder that the T4 (RL1), T4A (RL2), T5 (RL3) filing deadline is one week away (February 28th, 2020). Be sure to provide your accountant with all relevant documents to make sure that your T4s, T5s and all other slips are filed on time to avoid penalties.

    The T4/T5 filing deadline is fast approaching!

    A friendly reminder that the T4 (RL1), T4A (RL2), T5 (RL3) filing deadline is one week away (February 28th, 2020). Be sure to provide your accountant with all relevant documents to make sure that your T4s, T5s and all other slips are filed on time to avoid penalties.

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  • TAX… some quick points to consider..
    Posted
    • The amount of income an individual can earn without paying tax (basic personal amount) will begin increasing in 2020. In the first year, it will rise to $13,229 (from $12,069 in 2019), and will reach $15,000 in 2023. The benefit will begin to be phased out when an individual has earnings of approximately $150,000.
    • The purchase of a zero-emission vehicle, if associated with an income earning purpose (e.g. used in a business), may be eligible for a 100% immediate write-off as long as the federal government purchase incentive was not obtained.
    • TFSAs – As of 2017, the average number of contributions per individual was 49, the average fair market value of each account was $19,633, and the average unused space was $30,947.
    • There are 21 million corporations in Canada (according to 2016 statistics that were recently released). Total tax payable for 2016 was $72.21 Billion.
    • The amount of income an individual can earn without paying tax (basic personal amount) will begin increasing in 2020. In the first year, it will rise to $13,229 (from $12,069 in 2019), and will reach $15,000 in 2023. The benefit will begin to be phased out when an individual has earnings of approximately $150,000.
    • The purchase of a zero-emission vehicle, if associated with an income earning purpose (e.g. used in a business), may be eligible for a 100% immediate write-off as long as the federal government purchase incentive was not obtained.
    • TFSAs – As of 2017, the average number of contributions per individual was 49, the average fair market value of each account was $19,633, and the average unused space was $30,947.
    • There are 21 million corporations in Canada (according to 2016 statistics that were recently released). Total tax payable for 2016 was $72.21 Billion.
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  • CONGRATULATIONS TO OUR NEWEST CPA
    Posted

    Andrews and Co is pleased to congratulate Denis Dinh on becoming a Chartered Professional Accountant. Denis obtained his Bachelor of Commerce from Concordia University and joined our firm in 2017. Denis is a Team Lead and provides audit, taxation and business advisory services to our clients and he’s recently enrolled in the Chartered Professional Accountants of Canada In-Depth Tax program. We are proud to have him as part of our team!

    Andrews and Co is pleased to congratulate Denis Dinh on becoming a Chartered Professional Accountant. Denis obtained his Bachelor of Commerce from Concordia University and joined our firm in 2017. Denis is a Team Lead and provides audit, taxation and business advisory services to our clients and he’s recently enrolled in the Chartered Professional Accountants of Canada In-Depth Tax program. We are proud to have him as part of our team!

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  • CPA Successful Writers
    Posted

    Andrews & Co. is pleased to congratulate Kaitlyn Schryer on passing CPA Ontario’s Common Final Examination. Her strong work ethic and commitment to clients makes her a wonderful asset to the firm. We are lucky to have her as part of our team!

     

    Andrews & Co. is pleased to congratulate Kaitlyn Schryer on passing CPA Ontario’s Common Final Examination. Her strong work ethic and commitment to clients makes her a wonderful asset to the firm. We are lucky to have her as part of our team!

     

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  • Canada Pension Plan (CPP) Changes: Costs and Benefits are Increasing
    Posted

    Starting January 1, 2019, the CPP will be enhanced. This means that both employees and employers will be required to contribute more, but, retirement, survivor, and disability pensions will also increase. The changes will be gradually phased in over 7 years: Phase 1 will take place from 2019 to 2023; and Phase 2 will take place in 2024 and 2025.

    Phase 1 – The prior 4.95% base employer/employee contribution rate will increase annually to 2023, as follows, 5.10%, 5.25%, 5.45%, 5.70%, 5.95%.

    Phase 2 – In 2024, an additional 4% contribution will be required on earnings in excess of the Year’s Maximum Pensionable Earnings (YMPE), up to 107% of the YMPE. For example, if the YMPE is $70,100, the additional limit will be approximately $75,000 ($70,100 x 107%). The 4% rate will be applied to the difference between the two numbers: $4,900 ($75,000 – $70,100). For 2025 and later, the 107% multiplier will be increased to 114%.

    Eligibility for CPP benefits will not be affected, however, some benefits will increase. In 2019, the CPP retirement benefits will begin to grow, eventually covering 1/3 of average earnings up to the maximum amount (which will also be increasing by 14%). One’s benefits will depend on how much and how long they contributed to the enhanced CPP. Post-retirement benefits will also be increased. Disability benefits will be increased depending on one’s contributions, and the survivor’s benefit will also be increased based on the deceased spouse or common-law partner’s contribution.

     

    ACTION ITEM: Employers should budget for higher CPP costs on continual increases over the coming seven years.

     

     

     

    Starting January 1, 2019, the CPP will be enhanced. This means that both employees and employers will be required to contribute more, but, retirement, survivor, and disability pensions will also increase. The changes will be gradually phased in over 7 years: Phase 1 will take place from 2019 to 2023; and Phase 2 will take place in 2024 and 2025.

    Phase 1 – The prior 4.95% base employer/employee contribution rate will increase annually to 2023, as follows, 5.10%, 5.25%, 5.45%, 5.70%, 5.95%.

    Phase 2 – In 2024, an additional 4% contribution will be required on earnings in excess of the Year’s Maximum Pensionable Earnings (YMPE), up to 107% of the YMPE. For example, if the YMPE is $70,100, the additional limit will be approximately $75,000 ($70,100 x 107%). The 4% rate will be applied to the difference between the two numbers: $4,900 ($75,000 – $70,100). For 2025 and later, the 107% multiplier will be increased to 114%.

    Eligibility for CPP benefits will not be affected, however, some benefits will increase. In 2019, the CPP retirement benefits will begin to grow, eventually covering 1/3 of average earnings up to the maximum amount (which will also be increasing by 14%). One’s benefits will depend on how much and how long they contributed to the enhanced CPP. Post-retirement benefits will also be increased. Disability benefits will be increased depending on one’s contributions, and the survivor’s benefit will also be increased based on the deceased spouse or common-law partner’s contribution.

     

    ACTION ITEM: Employers should budget for higher CPP costs on continual increases over the coming seven years.

     

     

     

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  • Federal Carbon Tax: Costs and Rebates
    Posted

    On October 23, 2018, draft amendments to the Federal Fuel Charge Regulations and the Greenhouse Gas Pricing Act were released. As of April 1, 2019, a federal carbon tax is scheduled to be imposed in respect of Ontario, New Brunswick, Manitoba, and Saskatchewan. The federal backstop legislation will be partially used in Prince Edward Island, Yukon, and Nunavut. The other provinces and territory are not subject to this regime as they have, or are, instituting their own custom carbon pricing structures.

    In the first year, the federal tax will, for example, subject gasoline purchases to a 4.42 cents/L tax while 3.91 cents/cubic meter will be assessed on marketable natural gas. The rates will be increased annually until 2024.

    According to a Government Backgrounder entitled Ensuring Transparency the direct proceeds from the federal carbon tax will be returned to the territory or province of origin. For the provinces subject to the federal carbon tax, approximately 90% of funds will be returned directly to individuals and families through a Climate Action Incentive (CAI) payment. The remainder will be returned through electricity generation support in remote communities; support for small and medium enterprises; and support for municipalities, universities, schools, colleges, hospitals, non-profit-organizations, and indigenous communities.

    The following are sample published payout amounts and estimated costs for 2019.

    Province Climate Action Incentive Payments ($) Carbon Tax Cost ($)
    Family of 4 Avg.

    House-hold

    1st

    Adult

    2nd Adult Each Child Avg. House-hold
    Ontario 307 300 154 77 38 244
    Manitoba 339 336 170 85 42 232
    Saskatchewan 609 598 305 152 76 403
    New Brunswick 256 248 128 64 32 202

     

    Also note that a 10% top-up will apply for those residing in rural areas.

    The legislation does not set out the amounts of the payments. Rather, it provides that the amounts for each year may be specified by the Minister of Finance. Absent amounts specified for any specific province, the amounts are nil. It is not clear whether the amounts included in the above release are estimates, or are the amounts specified in accordance with this provision. Payments are expected to increase annually to reflect increases in the federal carbon tax, until at least 2022.

    The Government of Canada website (https://www.canada.ca/en/

    environment-climate-change/services/climate-change/pricing-

    pollution-how-it-will-work.html) provides additional information specific to each jurisdiction.

    The other provinces which are not subject to the federal program generally have similar systems in place which include the collection of levies, and a partial refund to individuals, with the remainder being used to fund the programs or other credits and direct expenditures. For example, in Alberta, the carbon levy is applied at a rate of $30/ton in 2019 to diesel, gasoline, natural gas and propane at the gas station and on heating bills. It does not apply to electricity. A carbon rebate valued at $300 for the first taxpayer, $150 for the spouse, and $45 for each child will be available with the payments beginning to be phased out at an income of $47,500 for individuals ($95,000 for families).

    ACTION ITEM: Review the above website to review exposure and potential rebates in your particular jurisdiction. Businesses may want to budget for increased costs to operate.

    On October 23, 2018, draft amendments to the Federal Fuel Charge Regulations and the Greenhouse Gas Pricing Act were released. As of April 1, 2019, a federal carbon tax is scheduled to be imposed in respect of Ontario, New Brunswick, Manitoba, and Saskatchewan. The federal backstop legislation will be partially used in Prince Edward Island, Yukon, and Nunavut. The other provinces and territory are not subject to this regime as they have, or are, instituting their own custom carbon pricing structures.

    In the first year, the federal tax will, for example, subject gasoline purchases to a 4.42 cents/L tax while 3.91 cents/cubic meter will be assessed on marketable natural gas. The rates will be increased annually until 2024.

    According to a Government Backgrounder entitled Ensuring Transparency the direct proceeds from the federal carbon tax will be returned to the territory or province of origin. For the provinces subject to the federal carbon tax, approximately 90% of funds will be returned directly to individuals and families through a Climate Action Incentive (CAI) payment. The remainder will be returned through electricity generation support in remote communities; support for small and medium enterprises; and support for municipalities, universities, schools, colleges, hospitals, non-profit-organizations, and indigenous communities.

    The following are sample published payout amounts and estimated costs for 2019.

    Province Climate Action Incentive Payments ($) Carbon Tax Cost ($)
    Family of 4 Avg.

    House-hold

    1st

    Adult

    2nd Adult Each Child Avg. House-hold
    Ontario 307 300 154 77 38 244
    Manitoba 339 336 170 85 42 232
    Saskatchewan 609 598 305 152 76 403
    New Brunswick 256 248 128 64 32 202

     

    Also note that a 10% top-up will apply for those residing in rural areas.

    The legislation does not set out the amounts of the payments. Rather, it provides that the amounts for each year may be specified by the Minister of Finance. Absent amounts specified for any specific province, the amounts are nil. It is not clear whether the amounts included in the above release are estimates, or are the amounts specified in accordance with this provision. Payments are expected to increase annually to reflect increases in the federal carbon tax, until at least 2022.

    The Government of Canada website (https://www.canada.ca/en/

    environment-climate-change/services/climate-change/pricing-

    pollution-how-it-will-work.html) provides additional information specific to each jurisdiction.

    The other provinces which are not subject to the federal program generally have similar systems in place which include the collection of levies, and a partial refund to individuals, with the remainder being used to fund the programs or other credits and direct expenditures. For example, in Alberta, the carbon levy is applied at a rate of $30/ton in 2019 to diesel, gasoline, natural gas and propane at the gas station and on heating bills. It does not apply to electricity. A carbon rebate valued at $300 for the first taxpayer, $150 for the spouse, and $45 for each child will be available with the payments beginning to be phased out at an income of $47,500 for individuals ($95,000 for families).

    ACTION ITEM: Review the above website to review exposure and potential rebates in your particular jurisdiction. Businesses may want to budget for increased costs to operate.

    Read More