December edition

December 1, 2008

Government of Canada Holds Employment Insurance Premium Rate at Lowest Level in 15 Years

The Honourable Jim Flaherty, Minister of Finance, and the Honourable Diane Finley, Minister of Human Resources and Skills Development, today welcomed the Canada Employment Insurance Commission's decision to hold the Employment Insurance (EI) premium rate for 2009 unchanged at $1.73, its lowest level in 15 years.

"Given the current challenges posed by global economic instability, Canadian workers and businesses appreciate that now is not the time for raising premium rates," said Minister Flaherty.

"Rather, it is time to secure Canada's economy against recent global headwinds, as our Government has already done with $21 billion in incremental tax relief this year."

In considering the rate decision, Minister Finley said: "Our Government will ensure that the program continues to be there for Canadian workers when they need it. We will also act on our commitment to improve the governance and management of the EI Account."

The Chief Actuary has calculated the maximum insurable earnings (MIE) for 2009 as being $42,300, up from $41,100 in 2008. The MIE is the income level up to which earnings are insured and on which premiums are paid by employees and employers. This in turn determines the maximum weekly EI benefits.

The MIE is calculated according to a formula set out in the Employment Insurance Act that indexes the MIE to growth in the average industrial wage. Employers pay 1.4 times the employee rate. The 2009 EI premium rate for Quebec will be $1.38. This is lower than in the rest of Canada because Quebec finances its own parental benefits.

To learn more about the EI program, please visit the Human Resources and Skills Development Canada website at www.hrsdc.gc.ca

--Department of Finance Canada

Are you a Casual Casualty? (Part 1)

We hear a lot about branding today. Companies spend millions on their logo and branding their product or services. What about your brand? Have you thought about your personal brand and what your appearance says about you?

Your visual appearance and how you are dressed make up 55% of the first impression someone has of you. People assess your credibility, expertise, competence and initiative based on that first impression. As we've often heard, we have only a few seconds to make a positive first impression. It can be either effective or disastrous but is always lasting and studies have shown, 67% accurate.

"But," you say, "You shouldn't judge a book by its cover, it's what's inside that counts!" Of course, but today do we have time to get to know someone? How long does that take? If we are faced with a decision whether to hire candidate A, B or C who have very similar education and strengths, how much time do you have to decide? You will likely make a decision based on professional presence and a large part of that in the short term is dependent on what the person is wearing. Yes, packaging makes a difference.

Ask any one in product design. Think about your own consumer choices. Do you buy anything in a torn a dirty wrapper?

During your next lunch-break, look at the people in the lunchtime crowd. Based on what they're wearing can you guess what position they hold?

Does their choice indicate their attitude?

Does it show they care about how they look and the impression they make?

Without knowing anything about their abilities, whom would you trust with an important administrative project for you?

Will it be the chap in the sweat shirt and jeans or the fellow in the navy suit; the lady in the twin set and skirt or the one in Capri's and flip flops?

Here's what Harry Beckwith in his best seller "What Clients Love," says about casual dress:

"If you're dressed for golf be sure you are golfing. When your cat is sick, your investments are plummeting or you are threatened by a lawsuit do you search out a casual veterinarian, a hang loose accountant, or a laid-back lawyer? Do you want your service providers to be casual about your needs, relaxed about your time and dressed as if they wished they were in Palm Springs instead of with you? No you don't and neither do your prospects."

The object of a first impression is to start the process off on a professional note. You sell yourself first and then you sell your company and its product. That's what the best sales people sell; themselves, their company, then their service or product. Sell yourself first.

Take a good look in the mirror and ask yourself "What does the reflection in the mirror say about me?"

Package yourself as a Professional. Remember when you are poorly dressed people notice your clothing. When you are perfectly dressed, they notice you! Why give anyone the ammunition to doubt your ability or expertise?

Dress for success!

....Next newsletter... Part 2

Louise Fox, Canada's Etiquette Expert The Etiquette Ladies http://www.etiquetteladies.com

AT THE WATERCOOLER

You may already be aware of the Tax-Free Savings Account (TFSF) that will be available in January 2009.
Here are some highlights regarding the new account that will be available to all residents over the age of 18:

Contributions of up to $5,000 annually can be made to a TFSA, with unused room being carried forward.

· Contributions will not be deductible.

· Capital gains and other investment income earned in a TFSA will not be taxed.

· Withdrawals will be tax-free.

· Neither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits. · Withdrawals will create contribution room for future savings. · Contributions to a spouse's or common-law partner's TFSA will be allowed, and TFSA assets will be transferable to the TFSA of a spouse or common-law partner upon death.

The Benefits of Saving in a TFSA

Because capital gains and other investment income earned within a TFSA will not be taxed, an individual contributing $200 a month to a TFSA for 20 years will accumulate about $11,045 more in savings than if the investment had been made in a taxable savings vehicle (unregistered account). -Department of Finance Canada

Why choose a TFSA over an RRSP?

1. RRSP contributions are deductible from your income to reduce taxes. Deposits to a TFSA will not be deductible.

2. RRSP withdrawals will be added to your income and fully taxed at then current tax rates. Withdrawals from a TFSA are tax-free. RRSPs are intended for retirement income and TFSAs are like an RRSP for everything else in your life. However, for those of modest income, a TFSA may be an effective way of providing a better income in retirement.

Consider that $2,000 of RRSP income for someone who would qualify for the Guaranteed Income Supplement (GIS) would see a $1,000 reduction of this government benefit. The same income from a TFSA would not reduce the GIS at all. The ability to earn investment income tax-free can be very valuable. For example, Jill saves $4,000 annually for ten years in a TFSA. She withdraws $50,000 (her deposits plus some growth) to start a small business. The full withdrawal amount is tax-free and she can return the full amount to her TFSA to continue earning tax-free investment income.

Withdrawals can be for any purpose at all. You can finance home renovations, a new vehicle, financial emergencies, a recreation property down payment and anything else you can think of with a Tax-Free Savings Account.

IPBC NEWS DESK

UPCOMING MEETINGS

Regional meetings are being organized in Vancouver, Edmonton, Windsor, Ottawa, Toronto, Halifax, and Truro, NS. If you are interested in facilitating a meeting in your area, please email info@ipbc.ca for an information package. Please include your full contact details.

From The Executive Director's Desk

Imagine networking with some of the top bookkeepers in the country. Imagine the chance to be on the fast track to a more lucrative practice . . . to being a certified professional bookkeeper (CPB) . . . and to receiving greater professional recognition inside and outside of this network. Regional Meetings are a vital part of that formula for success. They're a unique chance to combine learning - a guest speaker shares expertise that's sure to make your work a bit easier - with fun and powerful networking.

RECENT GRADS

The IPBC congratulates the following IPBC members in achieving the Certified Professional Bookkeeper (CPB) certification.

ALBERTA

Diane Pepin, Medicine Hat

Misty McConnell, Edmonton

Jaqueline (Bernal) Andriet, Sherwood Park

BRITISH COLUMBIA

Judy Rheault, Kelowna

Petra Gutmann, Tofino

Lovell Godinho, Richmond

Lee Anne Veres, Lantzville

Gordan Holley, West Vancouver

Angela Ruck, White Rock

MANITOBA

Charlene Hiebert, Winnipeg

Ruth Onslow, Gunton

NOVA SCOTIA

Diana Read-Miedema, Truro

ONTARIO

Barbara Stacey, Garden Hill

Peter Lindop, Avonmore

Lois Grift, Ridgetown

Susanne Coghill, Kingsville

Anna Therien, Huntsville

Laura Roth, Waterloo

Wendy Michael, Pembroke

Gayle Young, Ottawa

Lynne Godfrey, Huntsville

UNITED STATES

Kawaljit Singh Batth, New York, NY

WELCOME NEW IPBC MEMBERS IN NOVEMBER

ALBERTA

Shelley L. Brown, Calgary

BRITISH COLUMBIA

Linda Dolen, Fort Nelson

Annilene Hayman, N. Vancouver

NEW BRUNSWICK

Tania Long, Saint John

Carol McKiel, Bathurst

NOVA SCOTIA

Angela Franklin, Porters Lake

ONTARIO

Shah Faisal, Brampton

Rose Moraru, Richmond Hill

Janice Baguley, Newmarket

Daniel Fernandes, Toronto

Sarah J. Simpson, Georgetown

Anne Brown, Kingston

Nicole Dell'Aquila, Scarborough

QUEBEC

Ian Warnock, Brome Village

SASKATCHEWAN

Janet Caouette, Carrot River

UNITED STATES

Kawaljit Singh Batth, New York, NY

Quote of the day

Quality is not an act. It is a habit.

--Aristotle

Do you have a website?

If you are an IPBC member, you should proudly be displaying the IPBC logo along with a link, so your visitor can learn a little about your professional association. Membership in IPBC gives you an edge over your competition.

The purpose of the IPBC newsletter is to assist Canadian bookkeepers with tools, ideas, and resources to make your business efforts easier, and to help your business grow by delivering timely and thoughtful information. Do you have a story to share? Words of wisdom. Pass them along to us. Email to: karenl@ipbc.ca