OTTAWA—Prepare for higher payroll taxes and pricier passports after ringing in the new year, but if you have any money left over then you can put some more of it into your tax-free savings account.Canadians will see more money taken off their paycheques in 2013, with the federal government increasing Employment Insurance rates for both employees and their bosses.
That means the maximum annual EI premium you’ll pay will increase to $891.12 this year, up from $839.97 in 2012.
As a small consolation, the maximum weekly EI benefit will rise to $501 in 2013 from last year’s $485.
Meanwhile, the maximum annual EI premium for employers will rise to $1,247.57 in 2013 from $1,175.96 in 2012.
The bad news, as many will see it, is that the rules are getting stricter.
The Conservative government announced controversial changes to the employment insurance regime this spring that are coming into effect on Jan. 6.
The new rules, which redefine what constitutes a “reasonable job search” and “suitable employment,” are meant to discourage claimants from turning down job opportunities while receiving benefits and to ensure that Canadians receiving EI benefits fill vacant positions before they are offered to foreign workers.
The changes will also divide claimants into three categories: long-tenured workers, occasional claimants and frequent claimants.
Frequent claimants will be required to accept any job they are qualified to perform and wages starting at 70 per cent of their previous hourly earnings after having received benefits for seven weeks.
Meanwhile, it will cost more to get a new Canadian passport this summer.
Other increases scheduled for 2013 include:
• Passport Canada says the cost of a new five-year passport for adults will increase to $120 from $87 beginning July 1, while the cost of a child’s passport will increase to $57 from $37.
At the same time, the agency will also begin offering a new 10-year passport for $160.
Passport Canada says it has been in deficit since the 2008-09 fiscal year — losing about $4.59 per passport over the past four years — and has been making up the difference with previous surpluses that run out next year.
“The current fee structure hinders Passport Canada’s ability to cover costs and expenditures while maintaining existing security and service standards. It also makes implementing enhancements such as the electronic passport (ePassport), one of the Government of Canada’s commitments, financially impossible,” the agency said in a statement posted to the Canada Gazette website on Nov. 30.
• Canada Pension Plan benefits will increase by 1.8 per cent for those retired people already receiving them. The maximum benefit for new recipients will now by $1,012.50 per month, an increase of $25.83.
• Old Age Security benefits will also increase by 0.2 per cent. This increase will affect the basic OAS pension, the Guaranteed Income Supplement and the Allowances.
The maximum basic OAS monthly pension someone can receive will increase from $544.98 to $546.07. These new benefit rates will remain in effect until Dec. 31, 2013.
• The cost of stamps is also going up, with the price of mailing a regular letter within Canada will rise 2 cents to 63 cents on Jan. 14.
• The amount of money Canadians can contribute to the Tax Free Savings Account per year will increase by $500 to $5,500 in 2013.
Gregory Thomas, the federal director for the Canadian Taxpayers Federation, sees that as the silver lining to a year that will otherwise bring increased payroll taxes, but notes the new contribution limit remains far below what Prime Minister Stephen Harper promised during the 2011 election is on the horizon.
Original Article
Source: the star
Author: Joanna Smith
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