Workforce Solutions Brief

Production Capacity up for Fifth Straight Month


Canadian industry operated at 78.1% of its overall production capacity in the third quarter, a 1.2% gain over the previous quarter. The manufacturing sector led the trend, with its rate of capacity at 81.2%, a gain from 78.7% in the second quarter. Although the current rate is still below pre-recession levels, production capacity has steadily increased since its most recent low of 64.8% in the second quarter of 2009. Production capacity refers to the volume of products able to be generated in a given period using current resources.
Ca.finance.yahoo.com - Dec. 13, 2010


Predicted First Quarter Hiring Trends

Commercial and administrative positions will likely see continued hiring increases for the first quarter of 2011, according to a national hiring trends survey conducted by Express Employment Professionals.

Express surveyed 15,070 current and former clients across the company's more than 550 locations in the United States and Canada about their hiring and recruiting plans. According to the hiring trends survey, 29% of respondents plan to hire full-time commercial positions and 19% plan to hire for administrative positions in the first quarter. Survey results also indicate that 12% of respondents plan to hire engineers in the first quarter, and 9% plan to hire marketing professionals.
Express Employment Professionals - Dec. 20, 2010


Debt, Income Both at Record Levels

Household debt reached record levels in November, surpassing the U.S. equivalent for the first time since the late 1990's at 148% of disposable income. Low interest rates, which have encouraged consumers to spend, will inevitably rise, noted Mark Carney, governor of the Bank of Canada in his December address. However, Douglas Porter, deputy chief economist of BMO Capital Markets, reassures that Canadians are prepared to handle their financial obligations. "While debt has risen to record heights, so too have financial assets, due to a rebound in equities and an underlying rise in savings, "Porter said. "Taking these factors into account, as well as the recovery in Canadian full-time employment, leads to the conclusion that household finances are not nearly as weakened as the dire headlines would suggest."
Theglobeandmail.com - Dec. 14, 2010

 Top



Year-end Tax Planning Tips

• Certain expenditures made by individuals by December 31, 2010 will be eligible for 2010 tax deductions or credits including: moving expenses, child care expenses, safety deposit box fees, charitable donations, political contributions, medical expenses, alimony, eligible employment expenses, union, professional or like dues, carrying charges and interest expenses, certain public transit amounts and children's fitness amounts.
• You have until March 1, 2011 to make tax deductible Registered Retirement Savings Plan (RRSP) contributions for the 2010 year.
  Consider contributing to a spousal RRSP to achieve income splitting in the future.
• If you own a business, consider paying a reasonable salary to family members for services rendered to the business.
• An individual whose 2010 net income exceeds $66,733 will lose all, or part of their old age security.
  Senior citizens will begin to lose their income tax age credit if net income exceeds $32,506.
  Contact your professional advisors for assistance in managing 2010 personal income.
• Individuals that wish to contribute to the Canada Pension Plan or a Registered Retirement Savings Plan may require a salary to create "earned income".
   

Electronic Submission of the T1013

As of January 24, 2011 EFILE service providers will be able to electronically submit the Form T1013, Authorizing or Cancelling a Representative, to the CRA using certified EFILE T1 tax preparation software. The forms may be submitted in batches from one to thrity. Authorization can be in effect as early as four days.

For this year only, T1013's submitted electronically will be stock-piled from January 24, 2011 to February 14, 2011. Form T1013s can be submitted electronically year-round. When your form(s) have been submitted you will get a message to indicate whether the submission was successful or not.


US Citizens Living in Canada

On March 18, 2011 of this year in the U.S.,  the Hiring Incentives to Restore Employment, or HIRE Act passed into law. This Act contains provisions that impose reporting requirements on foreign institutions both financial and non-financial. The Act will make it virtually impossible for US persons with financial interests in a foreign country to remain off the IRS radar screen. These provisions may also be referred to as Foreign Account Tax Compliance Act provisions or FATCA.

This legislation is not only specific to financial institutions; non-financial institutions such as corporations and trusts will also be affected. For example, corporations who directly administer Share Purchase Plans (SSPs) and Divided Reinvestment Programs (DRIPs) will have to report this information for US persons. Small business corporations and trusts may also be affected.


HRPA Annual Conference & Tradeshow
February 2 - 4, 2011, Metro Toronto Convention Centre

Be sure to visit our Booth #807 at this years event!
The HRPA Annual Conference & Tradeshow is the second largest human resources conference in the world, attracting more than 3,500 HR and business professionals.

  Top


What's Your Beef?

Let us know what topics are important to you...we appreciate your feedback! 

Send your comments or suggestions to the editor of Workforce Solutions Brief - lmclean@psiint.ca