New – Important Message Regarding Electronic Funds Transfer
All remittances are due on or before the 20th of the month (following the month the remittances are due for). If you’re paying by electronic funds transfer, the bank takes 2-3 business days to transfer funds to TEIBAS. If your monthly payment isn’t received in TEIBAS’ account on or before the 20th of the month, your payment will be considered late and you will accrue late charges. There is no grace period if the 20th falls on a weekend or statutory holiday.
Questions? Contact TEIBAS Employer Services at 416-637-6789, select option 2. We’re here to help!
What's New - Important Tax Rule Changes from The Federal Government and CRA That Effect T4 Reporting
The Federal Government has made changes to pension rules for multi-employer pension plans like the IBEW Local 353 Pension Plan that impact how you report pension contributions on T4s. The implementation rules are complex, but to summarize, the CRA will no longer allow pension plans to accept pension contributions after the end of the year a member reaches age 71, or on the date they start receiving a pension from the IBEW Local 353 Pension Plan (whichever is earlier) if they continue to work. This means pension contributions can’t be added to their individual pension adjustment.
The effective date of these changes will depend on the date of the renewal of your collective agreement. TEIBAS will be directly notifying employers when a Plan member hits one of these thresholds, along with the effective date of when contributions should no longer be reported as a pension adjustment on the plan member’s T4.
Reminder: Pension contributions should not cease for these members, just the reporting of the pension adjustment. TEIBAS will continue to receive and administer the pension contributions in line with the terms of the applicable collective agreement.
Getting Started – Contribution Remittance
Employers are required to submit to TEIBAS a report and payment for hours worked in the month on or before the 20th of the following month.
Employers are provided access to a web-based remittance tool called MERIT, for submitting their monthly reports.
How to get started
You should have received a package from TEIBAS with an application form to sign up for MERIT. Once you have completed your form, return it to TEIBAS and we will provide you with a username and password to access MERIT. Log in to merit here: merit.teibas.com.
The advantages of the electronic remittance tool MERIT include:
It’s easy to use and makes monthly reporting faster,
Contribution rates for various classifications are provided and maintained and,
It’s fully supported.
- Please make sure to provide us with Revenue Canada Agency Taxation number on the application form, or with your first remittance. Also, please advise us if it changes.
- The report and payment are due on or before the 20th of each month following the month being reported.
- When the 20th falls on a weekend or holiday we recommend you date the cheque no later than the 20th and deliver it to TEIBAS before the due date. For instance, if the 20th of a given month falls on a Sunday, you must deliver the cheque to TEIBAS the Friday before.
- Companies that submit their payments after the due date are deemed to have filed late and are subject to delinquency charges of $0.08 per $100 outstanding per day.
- If you have no employees in a given month for whom contributions are required, you must remit a “NIL” report.
- Contributions are based on the total number of hours earned by the electrical worker, multiplied by the appropriate rate for each fund. The rates for the various job classifications are provided and maintained by the employer’s electronic remittances tool (MERIT) and taxes (GST/HST or PST) are automatically calculated.
- You are required to monitor the contributions made to the pension plan on behalf of each member in your employ during the year. When you are producing T4 slips at the end of the year, you will be required to report the contributions as the Pension Adjustment (PA). The PA is the total amount of the contributions made to the pension plan by the employer on behalf of the employee. (IBEW Local 353 Pension Plan registration number: 0598235)
Reminder: Please ensure you do not report Pension Adjustments beyond the relevant effective date if TEIBAS notifies you a member is either receiving an IBEW Local 353 pension or they have attained the age of 71.
- Some of the funds are paid to an RRSP account for the member. Please refer to the Canada Revenue Agency Employer’s Guide to Payroll Deduction Basics for more information.
- If you are an owner/operator doing bargaining unit work you must contribute to the health and welfare, pension, and group RRSP to a maximum of 1,800 hours per year. Other funds are contributed (e.g., ECA and Union Funds) at a minimum of 150 hours per month.
Electronic Funds Transfer
The following banks and financial institutions are set up to provide electronic funds transfers to the IBEW Local 353 Trust Funds: BMO, CIBC, Central 1 Credit Union, HSBC, National Bank, RBC, Scotia Bank, and TD Canada Trust.
To transfer funds, use your five-digit employer number as the account number and process payment to vendor IBEW LOCAL 353 TRUST FUNDS – TEIBAS. The amount of the transfer is based on the contribution statement balance owing, created through MERIT. You must ensure the funds are electronically transferred on or before the 20th day of the month. Banks and financial institutions require anywhere from one to three days to prepare the transfer of funds. We suggest you check with your provider beforehand because payment received after the 20th day of the month is considered delinquent and interest charges will apply.
The amount the employer calculates using MERIT is withdrawn from the account with pre-authorization. Complete the Pre-authorized Debit form. Employers must submit their data (“pending status”) in MERIT three business days prior to the 20th of the month. While the file is created in advance, funds are not withdrawn from the account until the 20th of the month.
Please note: where employers have not submitted data (e.g. data status is still “open” in MERIT) they will have the following options:
- Submit payment to TEIBAS (cheque or electronic funds transfer)
- Have the payment processed the following month through pre-authorized debit—delinquent interest charges will apply.
Cheques must be made payable to IBEW Local 353 Trust Funds and must be sent to TEIBAS at 110 Sheppard Ave East, Suite 705, Toronto, ON M2N 6Y8.