News in brief

CRA launches app for completing TD1s

› OTTAWA —The Canada Revenue Agency (CRA) has launched a new online application called the Tax Deduction Estimator (form TD1) that helps individuals complete federal and provincial/territorial personal tax credit returns.

Employees enter information such as annual net income, their spouse or common-law partner’s net income and dependants’ ages and net income into the required online boxes. Based on the information, the application will calculate the tax credits for which the individual may qualify.

When completed, employees can add their name, address, date of birth and social insurance number and print it as a TD1 in PDF format. They can then sign it and give it to their employer. The application also offers an option to create an XML version of the form for employers that prefer to receive them that way.

The application is available on the CRA’s website at www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/td1/menu-eng.html.

Quebec proposes HSF rate changes

› QUEBEC CITY —The Quebec government is proposing to reduce the Health Services Fund (HSF) contribution rate for certain manufacturing businesses as of Jan. 1, Finance Minister Carlos Leitão announced in an update on the province’s economic and financial situation late last year.

To encourage investment and job creation, Leitão said the government would reduce contribution rates for small and medium-sized enterprises (SMEs) in the primary and manufacturing sectors with annual payrolls less than $5 million.

For companies with a total payroll of no more than $1 million, the rate would decrease from 2.7 per cent to 1.6 per cent. For SMEs with a payroll between $1 million and under $5 million, the rate would be based on the following formula: 0.935 + [0.665 x (the employer’s total annual payroll ÷ $1 million)].

The regular contribution rate for employers with payrolls over $1 million but under $5 million is 2.31 per cent + [0.39 x (the employer’s total annual payroll ÷ $1 million)]. The contribution rate for employers whose total payroll is $5 million or more is 4.26 per cent.

Quebec to reduce Fondaction tax credit

› QUEBEC CITY — Employers with employees who pay into the labour-sponsored fund Fondaction will have to change their income tax deduction calculations for pay periods after May 31.

Revenu Québec has announced the provincial government will reduce the tax credit for the purchase of Fondaction shares from 25 per cent to 15 per cent for shares or fractions of shares bought after May 31.

The government temporarily increased the credit to 25 per cent on June 1, 2009.

For pay periods that begin as of June 1, 2015, Revenu Québec advises employers that use its Source Deduction Table for Quebec Income Tax (TP-1015.TI-V) for income tax calculations to subtract 75 per cent of the amount deducted from the employee’s gross pay for the purchase of shares instead of 125 per cent.

Little change in weekly earnings in September

› OTTAWA — Average weekly earnings of non-farm payroll employees were $941.92 in September, up slightly from $939.16 in August, Statistics Canada reports.

Statistics Canada revised the August numbers from the previously reported $943.30. On a year-over-year basis, weekly earnings increased 3.4 per cent in September.

The increase in weekly earnings during the 12 months to September reflected a number of factors.

Year-over-year earnings of non-farm payroll employees increased in all provinces, with the biggest growth in Manitoba, Newfoundland and Labrador and New Brunswick. The smallest growth occurred in Quebec and Prince Edward Island.