Taxes

Employment Insurance provides financial assistance when you’re unemployed and looking for work, and to Canadians who are sick, pregnant, caring for a newborn or adopted child, or caring for a relative who is critically ill.

Both employees and employers pay EI premiums. Employers must pay employment insurance (EI) premiums for each dollar of insurance earnings up to the yearly maximum. As an employer, the University pays a certain amount of EI premiums based on the EI deductions from an employee’s remuneration.
There is no age limit for deducting EI premiums.

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Canada Pension Plan contributions are deducted from your employment income if you:

• are 18 years or older, but younger than 70; and
• are in pensionable employment during the year

Both employees and employers contribute to CPP. Your portion is deducted directly from your pay cheque, and your employer matches your contributions and these are remitted to the Canada Revenue Agency.

The Canada Pension Plan contribution amount is calculated based on your gross pensionable earnings up to a ceiling for the given year. The ceiling is called your maximum pensionable earnings (YMPE). In addition, you’re allowed to earn a certain amount of money before CPP must be deducted. This amount is called the year’s basic exemption (YBE).

If you have reached the age of 65 and are in receipt of a CPP pension, and you do not wish to make CPP contributions, you must file a CPT30 with the CRA in order to stop the contribution, and provide the payroll office with a copy of this filing.

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Income tax will be deducted from your employment income based on the total claim amounts stated on the Federal and Provincial TD1 Forms – Personal Tax Credit Return 

The federal and provincial Personal Tax Credits Return TD1 forms must be completed by new employees and submitted to payroll. The information on these forms is used by payroll to determine the amount of federal and provincial income tax to deduct from an employee’s income.

You do not have to complete a new TD1 every year unless you have changes to claim extra tax credits, or additional taxes to be taken off on each pay.

TD1 TD1ON 

Active employees who have requested to receive paper delivery of their T4 or T4A slip prior to January 31, 2021 will receive 2020 tax slips in the mail.

Any requests submitted after January 31, 2021 will affect T4 distribution starting in 2022.

Inactive employees will receive paper tax slips in the mail. These documents will be sent to the most recently recorded mailing address in payroll. 2020 tax slips will be mailed from the University by the end of February.

Inactive employees who have moved or changed addresses in the past year must notify payroll at brescia.payroll@uwo.ca to have your mailing information updated for future pay statements and tax slips.

Inactive employees who do not receive a tax slip in the mail may contact brescia.payroll@uwo.ca to request a paper copy after March 15, 2021.

Please include the following information in your request:

• Full name
• Date of birth (YYYY-MM-DD)
• Phone Number
  Delivery method:
• Email—please submit your request in writing and provide a valid email address
• Standard mail—please provide a valid mailing address
• Pick-up in person—please visit the payroll office at MSJ Rm 152 after March 15, 2021, between Monday to Friday, 10:00am to 4:00pm. A valid piece of photo ID may be required.

Canada Revenue Agency form T2200 – Process outline for completion of the Declaration of Conditions of Employment form.

An employee’s eligibility to claim expenses will be reviewed on an individual basis. When an employer is asked to sign a completed Form T2200, they are certifying that the expenses paid by the employee are required within the employee’s terms and conditions of employment. The specific terms should appear in the employee’s employment contract or negotiated contract, and not all expenses that are reimbursed by Brescia may be eligible expenses under CRA guidelines for this deduction.

Process

The Form T2200 can only be signed when the conditions for each type of expenditure are met. 

1. Employees will provide a brief written statement outlining the type of expenses incurred and the basis for requesting the form T2200. This statement will be submitted to the payroll office.
2. The payroll officer will review the list of expenses against those eligible for reimbursement under the CRA guidelines and against PER/CWRTER spending.
3. The Form T2200 must be signed by the Vice-Principal, Finance and Administration.
4. The payroll officer will inform the employee once the form is authorized and can be picked up. Please allow 10 business days for completion of forms.

Qualifying Expenses

For complete details on CRA’s current allowable employment expenses, please see Guide T4044 – Employment Expenses available.

A signed T2200 does not provide an employee with any assurance that expenses incurred are deductible. The eligibility to deduct employment expenses is governed by the Canada Revenue Agency. Employees wishing to deduct employment expenses are advised to review the Canada Revenue Agency’s publications and/or seek advice from their personal tax consultant.

CRA Publications

• T2200 Declaration of Conditions of Employment
  T4044 - Employment Expenses guide

Information - 2020 Tax Year Expenses

With so many employees working from their homes during the COVID-19 pandemic, the ability to deduct home office expenses on their 2020 personal income tax returns has become an important topic, and one we have received many questions on. This week he government announced their Fall Economic Statement, and with it they announced a streamlined process for employees and employers to claim eligible work from home expenses on their personal income taxes.

 A summary of the announcement made indicated that if eligible employees have modest work from home expenses, they will be able to claim up to $400 for the 2020 tax year without the need to track detailed expenses and employers may not be required to complete a T2200 form for these employees. This is a new approach to employment related expenses. We assure you that we will still complete T2200 forms for eligible employees whose personal employment related expenses exceed those allowable under this new process.

We generally learn more about the administrative details that go along with legislative announcements in the weeks following the initial announcement. We don’t have the administrative details yet, or if there will be any changes to their definition of an “eligible employee”, and no update has been made at the present time in regards to whether CRA’s list of eligible expenses will change.

More information to follow!