Jun 2022 Newsletter
Stat Holidays & Vacation Time
Canada Day- July 1
Labour Day- September 6
Employees are entitled to take stat holiday days off work and receive stat pay. A pay rate of time-and-a-half is applicable in Ontario for those who work on the stat holiday. Please contact us if you need help calculating these amounts.
Also, make sure your employees are using their vacation days!
Ontario Staycation Tax Credit
This credit encourages Ontario families to explore the province, while helping the tourism and hospitality sectors recover from the financial impacts of the pandemic.
Ontario residents can claim 20% of their eligible 2022 accommodation expenses up to $1,000 as an individual and $2,000 as a family. This would allow you to get back $200 as an individual and $400 as a family. Examples include a stay at a hotel, cottage or campground.
Federal Budget Highlights
Tax Free First Home Savings Account (FHSA)- this proposed new account is intended to help Canadians save for their first home. As with an RRSP, contributions are tax-deductible. Similar to a TFSA, the capital gains and income earned within the account are not taxable. Withdrawals made for the purchase of a qualifying first home are also tax-free.
Residential property flipping rule- this proposed new rule ensures that profits from flipping residential real estate are always subject to full taxation. Specifically, profits arising from dispositions of residential property (including a rental property) that was owned for less than 12 months would be deemed to be business income. The new deeming rule would not apply if the disposition of property is in relation to at least one major life event specified by the budget.
The capital gains inclusion rate did not change from 50%.
There was no personal tax rate changes this year.