Taxation and Other Business Costs

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.

HST-Canada Government Sales Tax 

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 2010 are: 0.04712096, 0.05515132 and 0.06514894 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.

*Source: City of Timmins - Financial Sevrices - Tax & Water Department

WSIB - Workplace Safety and Insurance Board

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. To get an estimate on your WSIB costs, please use the premium estimator at the following Web address: http://www.wsib.on.ca/wsib/estimator.nsf/premiumEstimator?OpenForm

 *Source: Workplace Safety and Insurance Board

Ontario Corporate Income Tax

The Ontario Corporate Income Tax is a standard 12 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. 

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/

 *Source: Canada Revenue Agency

Utilities

Please visit the Site Selectors Utilities section for current utilities information.

Heating

During our cold northern winters, you will want to ensure your business is well heated. There are numerous types of heating available in our community. Natural gas is a popular and cost effective choice for most businesses. The pricing of natural gas, or any other heating source, varies widely depending on the floor space of the building in which you are operating and the type of business you are operating. For more information on natural gas heating and how it applies to your business please visit: http://www.uniongas.com/business/

Telecommunications

Timmins offers a number of high-end telecommunications providers and has a competitive market for telecommunications, which allows the providers to offer quality service at a reasonable price. Our telecommunications providers include (but are not limited to): Northern Telephone, EasLink and Via NET. A number of these providers offer special business plans with exceptional pricing.