HOW WILL CHANGES TO THE CANADA PENSION PLAN AFFECT YOUR RETIREMENT PLANS?

Every three years, federal, provincial and territorial Finance ministers review the Canada Pension Plan (CPP) to determine if benefits and/or contribution rates should be changed. Recommendations are based on a number of factors, including whether or not the Plan is meeting the needs of Canadians.

Following their review of the CPP in May 2009, the ministers unanimously recommended changes to the CPP to enhance flexibility and to support both older and younger workers in a fair and affordable way. The changes are being implemented gradually over a six-year period since January 2011, with full implementation in 2016.

What are the highlights of the changes to CPP?

• CPP retirement pensions will be higher if taken after age 65
• CPP retirement pensions will be lower if taken before age 65
• Changes to the general drop-out provision
• Elimination of the Work Cessation Test
• Introduction of the Post-Retirement Benefit

CLICK HERE FOR MORE INFORMATION FROM CANADA REVENUE AGENCY >>

FREE EMPLOYEE TRAINING FOR BUSINESSES IN BC

Together, the Canadian and British Columbia governments have sponsored the Aspect Targeted Skills Shortage program. The initiative bestows up to $7,500 per employer to provide workplace-specific training to eligible employees, to a maximum of $1,500 per employee.

The program is a great chance for employers to support educational opportunities for staff members who have a high-school-or-lower level of education. To be eligible, participating companies must employ less than 100 people and do business within several different industrial sectors.

More information on the program and eligibility criteria can be found on the Aspect web site.

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BEWARE AS CANADA REVENUE AGENCY CRACKS DOWN ON PERSONAL SERVICE BUSINESSES

While setting up a corporation may seem like a good idea if you're self-employed, it can have serious tax consequences in certain instances. If Canada Revenue Agency determines that you are, effectively, an "incorporated employee", it may disallow a number of business expenses as well as the small business deduction which normally applies to the first $500,000 of active business income that a corporation generates. This can result in the corporation's income being taxed at the highest corporate rate.

Some of the criteria that distinguish a corporation set up by a truly independent contractor versus a personal service corporation (PSC) include whether the corporation has only a single client or very few clients, whether the client provides work space or equipment and how much control the client has over when and where the contractor provides his or her services. Canada Revenue Agency's interpretation of the Income Tax Act with regards to "incorporated employees" is that, without the existence of the corporation, the person performing the services on behalf of the client company would reasonably be regarded as an officer or employee of that company.

Those who are required to work on-site for their client, on a schedule determined by the client and who are provided with work space and equipment would most definitely be considered to be operating a personal service business by CRA.

CLICK HERE TO READ MORE ON THE CANADA REVENUE AGENCY WEB SITE >>

FEATURED IPHONE APP: EVERNOTE

Are you constantly trying to keep track of little bits of paper, web site URLs, recipes, to-do list and more? With so many things coming at you from all directions, manual management of all your information can be a real challenge.

Evernote is an awesome free service that lets you store all your notes together in one place, organized how it makes sense to you. Whether it's a grocery list, notes from a meeting or class, vacation plans or a collection of your favourite web pages, Evernote can help you remember everything, even when you're on the go.

Best of all, Evernote also has a desktop app and web-based interface as well, all of which stay synced up so your information is accessible no matter where you are.

The Evernote web site has a wealth of tutorials to help you get the most out of the service and inspire you to find new ways to make managing your information more efficient.

CLICK HERE TO LEARN MORE ABOUT EVERNOTE >>

PAYROLL INFORMATION SEMINAR WITH INTRO TO WORKERS' COMPENSATION and EMPLOYMENT STANDARDS

Various dates throughout 2012, beginning Jan. 18

If your business has employees or may have employees in the future you need to know about B.C. Employment Standards, Work Safe BC, and Canada Revenue Agency Payroll Information and how they apply to your business.

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DO YOU JOURNAL REGULARLY?

Have you tried it and then gradually fall out of habit? Well, you are not alone! Journalling does require you to create a new habit but it's a habit is strongly linked to success.

A look at successful leaders throughout time reveals they all journal in some way.  Journalling help them gain the clarity of their vision, learn from successes and mistakes, and capture ideas when the iron strikes.  Proponents of journalling state that putting pen to paper to write your vision and goals, sets a stronger intention and makes them seem more real than if you were to type that information into a computer. 

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