Canada Post & Year-End Planning
As I am sure everyone is aware, Canada Post is currently on strike and, while there is potentially a resolution that will be agreed upon shortly, there are still likely to be delays as they clear a backlog of mail during a busy holiday season. Physical mail will still be impacted and we encourage you to take proactive steps to ensure you avoid any unintended financial repercussions during this time.
Key Considerations
Insurance Policy Payments
If you pay for your insurance annually and have a renewal date in December or January, please take a moment to confirm that your payment has been received. Missing a payment could result in the cancellation of your coverage, so we recommend checking directly with your provider or arranging payment through online banking or alternative methods. Please reach out to your TPC Advisory team if you have any specific questions regarding your premium date or annual renewal options.
Pre-Authorized Debits (PADs) & Bill Payments
To avoid any delays with regular payments for utilities, phone bills, or other recurring expenses, ensure that your pre-authorized debits (PADs) are active and up to date. For bills paid via mail, consider switching to pre-authorized debit or online payments where possible.
Bank & Credit Card Statements for Bookkeeping
If you are working with a bookkeeper who receives statements via mail, it may be prudent to download your statements digitally and send electronic copies to your bookkeeper to ensure that their services can continue uninterrupted.
BC Assessment Notices
BC Assessment notices, which provide property assessment values, are typically mailed at the end of the year. These may be delayed by the strike. However, BC residents can access the same information online by visiting the BC Assessment website. We recommend checking this site in early January if you are curious about the assessed value of your property.
Year-End Housekeeping Items
First Home Savings Account (FHSA)
If you are eligible for an FHSA and have not yet opened or contributed to one, this is a great opportunity to take advantage of this new type of account. Unlike a TFSA and RRSP, you only begin accumulating FHSA room when an account has been opened. FHSA contribution room of $8,000 can be carried forward by one year, with the maximum allowable contribution of $16,000 if no contribution was made in a previous year. If you or anyone you know is looking to potentially buy a home in 2025 who does not have an FHSA account open, this is a quick and easy way to double their contribution room for 2025.
Review RESP Contributions
Ensure you have maximized contributions to your RESP accounts before year-end deadlines to make the most of available tax benefits and savings opportunities. RESP contributions are based on a calendar year, so now is a great time to take advantage of last-minute Canada Education Savings Grants (CESG).
2025 Payroll/Dividend Planning
With the year-end approaching, it is also a good time to review your remuneration planning to ensure that you enter the new year with a clear understanding of what amounts you should be paying yourself. A reminder for those taking salary, that CPP contributions begin again in January. If your salary exceeded $68,500 in 2024, your January 2025 net income may be less than your December 2024 net income, as you must restart CPP contributions equal to 5.95% of your gross salary.
Additional Tips
- If you rely on paper statements or mail for important notices, consider signing up for electronic statements where available.
- For any payments sent by mail, confirm their receipt with the recipient to avoid penalties or service interruptions.
We are here to help you navigate this situation. If you have any questions or require assistance, please do not hesitate to reach out.