Happy New Year. With the New Year come some important changes that as a business owner, you should know about.
Canada Pension Plan
Not only has the maximum pensionable earnings changed for CPP as of January 1, there is now a second contribution rate. The maximum pensionable earnings has been set at $68,500 and the contribution rate for employers and employees is 5.95%, which means the contribution maximum amount is $3,867.50 (for the employer and for the employee).
New for 2024 is CPP2, which provides a second deduction rate for pensionable earnings between $68,500 and $79,400. So if you have employees or your compensation is greater than $68,500, there is an additional 4% contribution rate for both the employer and employee.
T Slip Filings – Electronic Requirements
Effective January 1, 2024, if your business files six or more T4 slips, T4A slips or T5 slips, then you are required to file these slips electronically. If you do not file them electonically, you will be subject to a penalty of $125 from the Canada Revenue Agency.
HST Filing – Electronic Requirement
With the exception of Charities, all HST registrants are required to file their returns electronically beginning January 1, 2024.
Don’t Forget the Canadian Dental Care Plan when filing your T4 Slips
The Canadian Dental Care Plan is now in effect for uninsured Canadians with an adjusted family net income of less than $90,000. With the new plan comes a requirement for employers to include information on the 2023 T4 slips of the employee as to their eligibility to access dental insurance or coverage from their current employment. On the T4 slip, make sure you are filling out Box 45.
CRA Interest Rate set at 10%
For the first quarter of 2024, CRA has set its interest rate at 10% on overdue taxes, CPP contributions and EI premium contributions. The significant interest rate can add up quickly, so staying current with CRA is more important than ever.
There are a few of the changes that are kicking off the New Year from the Canada Revenue Agency that you will want to watch for as a business owner.
Until next time,
Jason
