Taxation

As a business owner in Timmins, there are several business costs you should be familiar with. Here is an overview of some of the costs associated to running a business in Timmins.

Harmonized Sales Tax (HST)

If you are operating a business in Canada and your business has accumulated more than $30,000 in revenues, you are required to register your business at the federal level and by doing so you will be obligated to charge HST to your customers. The HST is a set rate thirteen per cent sales tax. There are various situations in which the use of HST is not necessary -- for example, if your product is being exported internationally, if you are selling basic groceries or if you are selling prescription drugs. For more information on the HST please read the Government of Canada's publication at http://www.cra-arc.gc.ca/E/pub/gp/rc4027/.
 *Source: Canada Revenue Agency

Municipal and Education Taxes

The municipal and education taxes are charged yearly to any property owner in the City of Timmins. These taxes are calculated by multiplying the assessed value of the property by the current tax rate for that type of property. The combined municipal and education tax rates for 2014 are: 0.0470916, 0.05204979 and 0.06180233 respectively for commercial, industrial and large industrial properties. Please note that in the case where your commercial property is located in the Downtown core, your tax rate will increase by an additional 0.005706 due to the Downtown Business Improvement Area (BIA). The BIA helps market the downtown business sector and strives to maintain growth in the downtown area.

Municipal and Education Tax Rates (2014)

 Type of Property

 Municipal

 Education

 Combined

 Commercial   
      Occupied

 3.250916

 1.22

 4.470916

      Vacant & Excess Land

 2.275641

 0.854

 3.129641

 Industrial   
      Occupied

 3.984979

 1.22

 5.204979

      Vacant & Excess Land

 2.590236

 0.793

 3.383236

 Large Industrial   
      Occupied

 4.960233

 1.22

 6.180233

      Vacant & Excess Land

 3.224151

 0.793

 4.017151

Source: City of Timmins Financial Services - Tax and Water Department

Workplace Safety and Insurance Board (WSIB)

The WSIB is the association charged of enforcing the Workplace Safety and Insurance Act.  It insures that work conditions are safe and by doing so help eliminate preventable injuries. As a business owner in Ontario, with one or more employees, you are required to pay a premium to the WSIB. This premium is calculated based on the type of business and the amount of your payroll. 
 *Source: Workplace Safety and Insurance Board

Ontario Corporate Income Tax

The Ontario Corporate Income Tax is a standard 11.5 per cent tax charged to all private corporations within Ontario. However, if you are a small business owner, you can apply for the Ontario small business deduction. This deduction is calculated by multiplying the corporation's Ontario small business income for the tax year by the small business deduction rate (7.5) for the year.
 *Source: Canada Revenue Agency

Employment Insurance Premiums

As an employer in Canada you are obliged to pay premiums for employment insurance. Your employees' premiums will be deducted from their paycheck at a rate of 1.73 per cent. As an employer, you will be charged 1.4 times the employee rate, which will result in a 2.4 per cent deduction on your income. These premiums insure that the Employment Insurance program is available to you in the case of job loss.
 *Source: Canadian Department of Finance

Canada Pension Plan Premiums

All Canadian employees are obliged to pay a 4.95% premium rate toward the Canada Pension Plan. As an employer, you are to pay the same premium as the employee. However, if you are self-employed, you must pay both the employee and employer premiums. 
 *Source: Canada Revenue Agency

For more information on EI, CPP and other rates and deductions, please see the Government of Canada's Employers' Guide - Payroll Deductions and Remittances at: http://www.cra-arc.gc.ca/E/pub/tg/t4001/