Forum Posts

Taunya Woods Richardson
May 12, 2022
In NTN News + Updates
Source: Canadian Revenue Agency [Note the following content has been sourced directly from CRA's website, including terms and definitions.] Indigenous [Indian] employees We [CRA] recognize that many First Nations people in Canada prefer not to describe themselves as Indians. However, we use the term "Indian" because it has a legal meaning in the Indian Act. The following information will help you determine which deductions you have to make for Indians. Definitions Guidelines Taxable salary or wages paid to Indians Non-taxable salary or wages paid to Indians Reporting Definitions Indian: An Indian is a person who is registered or entitled to be registered as an Indian under the Indian Act. Reserve: The term “reserve” is defined under the Indian Act and, for the purpose of this webpage, includes all settlements given reserve-like treatment for taxation purposes under the Indian Settlements Remission Order. It also includes any other areas that are treated similarly under federal laws such as Category I-A lands under the Cree-Naskapi (of Quebec) Act. Indian living on a reserve: This means an Indian who lives on a reserve in a domestic establishment that is their principal place of residence and that is the centre of their daily routine. Employer resident on a reserve: When an employer is resident on a reserve, the reserve is the place where the central management and control over the employer organization is actually located. We usually consider a group that performs the function of the board of directors of an organization as exercising the central management and control of an organization. However, it may be that some other person or group manages and controls the organization. Generally, a person or group manages and controls an organization at the principal place of business. However, this activity can occur in a place other than the principal administrative office of the organization. It is a question of fact as to where the central management and control is exercised. Guidelines Following the Supreme Court of Canada decision in the Glenn Williams v Canada case, we developed guidelines to help you determine a tax exemption that applies to an Indian’s employment income. These guidelines do not reflect a change in tax policy. They deal only with determining a tax exemption under the Indian Act following the Supreme Court decision. As a result of the Williams decision, you have to examine all factors connecting income to a reserve to determine if income was earned on a reserve and is tax-exempt. When you apply all the connecting factors, be aware of unusual or exceptional circumstances such as these: the income may not be taxable even though it does not fall within one of the guidelines the income may be taxable even though it appears to fall within one of the guidelines If you have any questions about a particular situation, call 1-800-959-5525. Form TD1 IN, Determination of Exemption of an Indian’s Employment Income, will help you decide what type of exemption might apply to an Indian’s employment income according to the Indian Act Exemption for Employment Income Guidelines. Keep a completed form on file for each employee in case we ask to review it. Taxable salary or wages paid to Indians CPP contributions, EI premiums, and income tax If you are an employer paying taxable salary or wages to an Indian, you have to deduct CPP contributions, EI premiums, and income tax. Note: If you paid a retiring allowance to an Indian, see Retiring allowances. Non-taxable salary or wages paid to Indians Canada Pension Plan The employment of an Indian whose income is exempt from tax is excluded from pensionable employment. Therefore, if you are an employer paying non-taxable salary or wages to an Indian, you do not have to deduct CPP contributions. Application for coverage under CPP Although you do not have to deduct CPP from non-taxable income you pay to an Indian, you can choose to provide your Indian employees with optional CPP coverage. You can elect to do this by completing and filing Form CPT124, Application to Cover the Employment of an Indian in Canada Under the Canada Pension Plan Whose Income is Exempt Under the Income Tax Act. However, you cannot revoke this election and you have to cover all employees. Coverage under the CPP starts on either the date you sign the application or on a later date that you specify. It cannot be retroactive to a date before the date you signed the application. For more information about coverage under CPP, go to Indian workers and the Canada Pension Plan. Employment insurance You have to deduct EI premiums from the non-taxable salary or wages you pay to an Indian. Note: EI benefits, retiring allowances, CPP payments, registered pension plan benefits, or wage-loss replacement plan benefits will usually be exempt from income tax when they are received as a result of employment income that was exempt from tax. If a part of the employment income was exempt, then a similar part of these amounts will be exempt. For more information about the Indian Act Exemption for Employment Income Guidelines and the different registration dates, go to Information on the tax exemption under section 87 of the Indian Act. Reporting See the reporting instructions for information on how to complete the T4 Statement of Remuneration Paid (slip) for Indians. Forms and publications Form TD1-IN, Determination of Exemption of an Indian’s Employment Income Form CPT124, Application for Coverage of Employment of an Indian in Canada Under the Canada Pension Plan Whose Income Is Exempt Under the Income Tax Act T90 Income Exempt From Tax Under the Indian Act Related topics Indian Act Exemption for Employment Income Guidelines Information on the tax exemption under section 87 of the Indian Act #Step1
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Taunya Woods Richardson
May 10, 2022
In NTN News + Updates
Public and private best-in-sector organizations are dialing in on increased material and input costs. Perhaps, you should too? On June st B.C. Ferries will add an additional 1.5% to each fare charged. Catch the full article here. Consider following suit by reviewing [quarterly] current material and input costs, applying temporary surcharges, and updating your "Terms of Agreement' to include a clause that informs clients of your right to impose temporary surcharges when necessary. And from the Harvard Business Review: Why Companies Raise Their Prices: Because They Can! Don't be afraid to communicate the changes to your clients. The ones who value you and the work you do will understand. Here's to forging your financial superpowers.
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Taunya Woods Richardson
May 05, 2022
In NTN News + Updates
This is a timely article given the discussions we've been having in Drill 1.1 about Team + Personnel costs. Consider the possibility and budget for the expense of setting up #pensionplans as a benefit or a bonus. It can also become a valuable recruitment and retention strategy if you plan to extend it to employees. Financial Post article: With workplace pensions disappearing, how can workers fill the gap? I personally think this would be a valuable conversation to have with a NTN Pro during one of our weekly group coaching calls. Let us know if you agree.
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Taunya Woods Richardson
May 03, 2022
In NTN News + Updates
BAM! You asked and we delivered. Investment advisor extraordinaire Blair Lukan is joining us on our weekly group coaching call this Friday [May 8th,11AM MT], and he's going to help you boost your bottom-line investment strategy. Whether you're just starting out with investments or looking to recalibrate your current strategy, this is the perfect opportunity to get valuable insights from one of the industry's leading Pros. Blair's not presenting on this call - he is actually going to be answering all of your burning questions! So post them below, share them with your Accountability Agent, or ask them directly on the call, but make sure to get them out into the open where they can be heard and discussed by everyone. This is an incredible opportunity to get the information you need straight from the source, so don't miss out! The future of your business could depend on what you learn on this call, so don't hesitate - just ask those questions and start making progress toward achieving your end-game goals! Let's do this!
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Taunya Woods Richardson
Aug 22, 2021
In NTN News + Updates
If you've been waiting for financial guidance and coaching that takes you from barely breaking even to boldly breaking through, your wait is almost over. We're pouring our heart and soul into building you a framework that brings you the coaches, courses, and community needed to see you through! Mark your calendars: Monday, September 6th is when we open the doors, for a private VIF [Very Important Founder] only tour. Until then, we invite you to learn more about our flagship program The Financially Fierce Formula, the six-step process that will reinvent your business, from the bottom-up! Take the Tour ​
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Taunya Woods Richardson
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