Keeping You on Your Tax Toes

Neha Sahi, CPA, CABlog, Consulting, Tax

It’s March which means T4s (statements of remuneration paid) and T5s (statements on interest and dividends paid) have all been filed with the government.  If your deductions, remittances of those deductions, and the employer share and reporting, are all correct, there should be no further communication from the federal government.

1.      An area often overlooked in Manitoba is the health and education tax, often referred to as the payroll tax.  If you employ individuals in Manitoba and pay them in excess of $1,250,000, taxes are due.  If your total remuneration is more than $1,250,000 and less than $2,500,000, the tax is 4.3% of the excess over $1,250,000.  If your total remuneration is $2,500,000 or more, the tax is 2.15% of the total remuneration.

         The Province requires a form to be filed by March 31 calculating the total tax and a remittance if there is a balance due.  If there is an overpayment, the form must be filed to obtain a refund.  As T4s are filed at the end of February, if you have not filed the provincial form concurrently with the federal form, it is easy to overlook.  If a balance is due and not paid, it will attract penalties and interest.

2.      A second issue which comes up regularly in March and April is employee requests for government mandated forms for the use of vehicles, home offices or other business expenses paid by employees.  The rules are complex and it is often difficult to know if one should sign the form.  We recommend you call one of our tax people who can tailor their sage advice to your particular circumstance.

3.      Finally, have you ever wondered if your payroll expense is too high or not?  We can help you with that.  We have access to data for many industries.  The data includes more than just payroll.  If you would like to know where you fit, give us a call.

Tax department:

–          Ken Goodridge 204-957-8205

–          Alex Zhang 204-977-3518

Industry data assistance:

–          Neha Sahi 204-957-8201

–          Matthew Lazowski 204-977-3506

–          Ann Fuller 204-977-3879