Nunavut Payroll Tax Case Study

Wages earned by employees during December and to be paid in January are $33,875; associated payroll taxes on these wages are $2,710.

Once the payroll for the month being processed has been completed the information is sent to HMRC via an FPS file. This is to keep in line with the Real Time Information that was brought in by HMRC in 2013. RTI was brought in to assist with assessment for people’s entitlement to Universal Credits. Employers are required to make two submissions each month, an FPS and an EPS. Full Payment Submission (FPS) is the main submission giving breakdown of PAYE/NIC calculations for each employee. Employer Payment Summary (EPS) is the data which enables the employer to reduce the amount of tax and NIC payable, so will reflect any recovery of statutory payments.

Together with AK/ADMS 4562 3.0, introduces students to the principles and practice of Canadian taxation and related tax planning, to provide a basic understanding of the Canadian Income Tax Act and its GST implications in

11 Mangino, R. 12 Flores, I. 13 Palmetto, C. 21 Waters, R. 22 Kroll, C. 31 Ruppert,

Fig. 3 "Current Publications: Employment and Labour." : The Employment Insurance Program in Canada: How It Works. N.p., n.d. Web. 21 Feb. 2016.

HMRC, Salary Sacrifice: An Overview for Employers.[internet]. Available at: http://www.hmrc.gov.uk/paye/payroll/special-pay/salary-sacrifice.htm [last accessed 26th November 2010]

Canada Revenue Agency provides two options for filing form RC4616 where there are existing elections. Option one provides for filing a common effective date of December 31, 2014. The second option provides for filing separate forms for the original effectives dates.

The main competitive advantage that the organization has had relates to the sense of pride of its’ Canadian Roots as well as previous success in relation to the speed of strategic decisions in the past.  To begin to address the situation faced by this organization, it is impertinent that all of the mandatory government legislations are updated and in full effect.  It would also be worth doing research on similar industries and competitors to see how they have made their compensation strategies successful as well as any best practices that we might want to consider benchmarking.  This should be an eye opener to the organization to insure the appropriate changes are made to put them at a more competitive advantage.

Ensure that the computation of salaries will be accurate and will not affect or interrupt other related processes in the system

When you start working you will be given a Tax Code that will indicate to your employer how much tax you should be pay. Taxes are compulsory. A part of each person’s earnings is collected by the government, and then used to pay for the things that we need as a country, such as hospitals, roads, schools and defences. Each year you will receive a P60 form, which will show how much you have earned, and how much tax you have paid for that year. When you leave a job your employer must give you a P45 form, which you must give to your new employer.

HMRC ensure the correct tax is paid at the right time, whether this relates to payment of taxes received by the department or entitlement to benefits paid.

Overall, Canada has a higher income tax rate compared to the United States of America, thus employees from the USA who work in Canada are subjected to factors such as the Canadian non-residential tax rate and currency exchange rate. In correspondence to the Canadian equalization adjustment, it will ensure that employees, like yourself, will be compensated with the equivalent net income, after deductibles and exchange rate. In other words, the value of your contract may vary, but ultimately, you will receive the same salary, as if you are working in the USA.

As an employee, your employer is obliged by law to take off Income Tax and National Insurance contributions from your salary or wages before paying them to you. You're also entitled to all minimum legal employment rights including:

Consideration for economic context is essential for work and learning. Companies, such as public, not for profit, privately operated/owned etc., have the ability to move unaccounted for resources across borders, attain cheap labour by outsourcing and create off-shore accounts to avoid taxes all of which impact work and learning. The Canadian economy is one derived of many variables. Employers creating workplaces by outsourcing their labour, moving resources that are unaccounted for or by creating accounts to avoid taxes are in business to have the lowest expenses and the most profit. These employers are prepared to do what it takes at whatever cost. The community in which I live consisted of several factories. These factories operated for many years employing many people in this community. Over the last 15 years most of these factories shut down and relocated to various other countries, obtaining cheap labour and new ways of distribution, leaving