Saskatchewan’s 2024 Budget Highlights

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On March 20, 2024, the Saskatchewan’s Minister of Finance announced the province’s 2024 budget. This article highlights the most important things you need to know about this budget, broken into 2 sections:

  • Business Tax 

  • Personal Tax

Personal tax changes

There are no changes to the province’s personal tax rates in Budget 2024. 

As a result, the Saskatchewan’s personal income tax rate remains as follows: 

1 The top marginal tax rate on non-eligible dividends is scheduled to decrease to 40.37% for 2025 (assuming no further rate or dividend tax credit changes.)

Business tax changes

The budget delays a planned increase in the 1% small business income tax rate until July 1, 2025. This means that instead of going up on July 1, 2024, the small business tax rate will only increase to 2% on July 1, 2025. This change also affects Saskatchewan’s corporate income tax rates, which are set to be as follows:

1 On first $600,000 of active business income. 

2 Saskatchewan’s small business tax rate is scheduled to increase to 2% on July 1, 2025.

Also, the total Saskatchewan and federal corporate income tax rates are set to be:

1 Assuming no further changes to federal or Saskatchewan tax rates.

2 Saskatchewan’s small business tax rate is scheduled to increase to 2% on July 1, 2025.

Saskatchewan Technology Start-up Incentive

The budget improves the Saskatchewan Technology Start-up Incentive. This program gives a non-refundable 45% tax credit to specific accredited investors who invest in certain start-up businesses. Now, the budget makes more start-ups eligible for this incentive, especially those working on new technologies in clean energy. Plus, the program will last longer, until March 31, 2027, instead of March 31, 2026. Also, there will be more money available for funding these start-ups.

Saskatchewan Commercial Innovation Incentive

The budget gives more time for businesses to apply for the Saskatchewan Commercial Innovation Incentive, also known as the “patent box.” Now, businesses can apply until June 30, 2025, instead of June 30, 2024. This incentive typically lowers the provincial corporate income tax rate to 6% for ten years for businesses that sell their new ideas in Saskatchewan. Also, the government plans to check how well this program is working in 2024 and will listen to what businesses have to say about it.

Critical Minerals Innovation Incentive

The budget brings in the Saskatchewan Critical Minerals Innovation Incentive, a new program. It’s for certain pilot and growing projects that get transferable Crown royalty and freehold production tax credits. These credits are worth 25% of the costs of the program that qualifies. The budget mentions that this incentive is for projects that use new technologies to improve how minerals are recovered, reduce environmental effects, add value during processing, or sell extra or waste products.

Critical Minerals Processing Investment Incentive

The budget brings in the Critical Minerals Processing Investment Incentive. This program gives transferable Crown royalty and freehold production tax credits. These credits amount to 15% of eligible costs for certain projects. The incentive is for new or expanded projects that add value to minerals in Saskatchewan. It includes opportunities to sell extra products made at current mines and processing plants.

Saskatchewan Petroleum Innovation Incentive

The budget gives more time to apply for the Saskatchewan Petroleum Innovation Incentive, now until March 31, 2029, instead of March 31, 2024. This incentive gives transferable tax credits for certain projects that turn innovative ideas into business reality. The credits amount to 25% of the costs of the project that qualifies. The budget also stops helium and lithium projects from being eligible for this incentive because they can now qualify under the new Saskatchewan Critical Minerals Innovation Incentive.

Oil and Gas Processing Investment Incentive

The budget gives more time for the Oil and Gas Processing Investment Incentive until March 31, 2029, instead of March 31, 2024. Also, there’s more funding available. This incentive offers transferable tax credits for certain projects that add value to the oil and gas industry, whether they’re new projects or improving existing ones. The credits amount to 15% of the costs of the project that qualifies. The budget also stops helium and lithium projects from being eligible for this incentive because they can now qualify under the new Critical Minerals Processing Investment Incentive.

Multi-lateral Well Program

The budget starts the Multi-lateral Well Program, which gives drilling incentives for certain new oil wells. The incentives depend on whether the well is shallow, deep, or for exploring. This program is for new wells drilled from April 1, 2024, to March 31, 2028.

We can help!

Wondering how this year’s budget will impact your finances or your business? We can help – give us a call today!

The Benefits of Working With An Employee Benefits Specialist

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We understand that when looking for employee benefits, you’re looking to do so cost-effectively. But it’s essential to make sure you work with an employee benefits specialist, no matter what the price tag is on your benefits package. 

We’ll explain how an employee benefits specialist differs from a generalist and why working with an employee benefits specialist is so important.

How does an employee benefits specialist differ from a generalist?

You may have approached financial advisors who can handle various tasks, such as selling you insurance products, investments, and employee benefits. However, this kind of financial advisor would be considered a generalist, and they lack in-depth knowledge of how complex employee benefits can be.

An employee benefits specialist is the opposite of a generalist. They are licensed advisors who have dedicated their practice to employee benefits. Employee benefits specialist prides themselves on understanding all the nuances associated with employee benefits. A specialist undergoes further training and acquires in-depth knowledge about employee benefits. 

Why is it essential to work with an employee benefits specialist?

Employee benefits plans are complex, and your business could be at risk if your employee benefits program isn’t administered correctly. As you know, employee benefits form a part of an employee’s compensation package. 

These are the benefits of working with an employee benefits specialist:

  • We help provide the best employee benefits suited for you and your business. 
  • We provide a smooth employee enrollment program so your employee saves time. 
  • We help your employees with questions about their employee benefits program. 
  • We educate your employees about how the benefits program works for them. 
  • We know how to deal with complicated benefits claims. 
  • We can explain how to reduce the risk of any liabilities associated with offering employee benefits programs—for example, offering mandatory enrollment versus voluntary enrollment in a benefits program. You can run into issues with voluntary enrollment if your enrollment level is below the required threshold.
  • We can explain how your benefits program can work for different employment situations, such as seasonal and contract workers.

The bottom line is that working with an employee benefits specialist means you’ll have access to a well-designed and administered benefits plan. 

How can I get started working with an employee benefits specialist?

Ready to make a move to working with an employee benefits specialist? We’re here to help you get the benefits program to attract and retain employees. Call us today to get started!

Video link: https://vimeo.com/770504723/50ba274537