Sometime during the month of February, millions of Canadians will receive mail from the Canada Revenue Agency (CRA). That mail, a “Tax Instalment Reminder”, will set out the amount of instalment payments of income tax to be paid by the recipient taxpayer by March 15 and June 15 of this year.
Newsletter - Page 23 of 31 - Akler Browning LLP
Latest news and regulations from the financial world.
One of the biggest pandemic-related changes in the day-to-day lives of Canadians was the abrupt change to work-from-home arrangements. While such arrangements aren’t new — employees and the self-employed have been working from home for decades, ever since the available technology made such arrangements feasible — what changed in 2020 was the sheer number of Canadians who were working from home for the first time.
Under Canadian tax law, the general rule is that all amounts paid by an employer to his or her employees are treated as taxable income. That rule holds whether those amounts are paid as cash remuneration, or in the form of non-cash benefits.
For most taxpayers, the first few months of the year are a seemingly unending series of bills and payment deadlines. During January and February, many Canadians are still trying to pay off the bills from holiday spending.
Two quarterly newsletters have been added—one dealing with personal issues, and one dealing with corporate issues.
The Employment Insurance premium rate for 2021 is unchanged at 1.58%.
The Quebec Pension Plan contribution rate for 2021 is set at 5.9% of pensionable earnings for the year.
The Canada Pension Plan contribution rate for 2021 is set at 5.45% of pensionable earnings for the year.
Dollar amounts on which individual non-refundable federal tax credits for 2021 are based, and the actual tax credit claimable, will be as follows:
The indexing factor for federal tax credits and brackets for 2021 is 1%. The following federal tax rates and brackets will be in effect for individuals for the 2021 tax year.