Saskatoon Co-op Equity & Cash Back
Over 6 million cash to be paid out to local member-owners in 2019. Equity statements will be out in mid-July!
Congratulations! As a result of the continued tremendous support of the Saskatoon Co-op by its members, we have had another very successful year in 2018, with sales of $426.5 million.
This success has allowed the Board of Directors to authorize for the 26th year in a row a general cash repayment to the Co-op’s owners – you, the members.
Patronage will be allocated to members’ share accounts at the following rates, based on each member’s purchases:
Food and Gas Bars (Non Fuel) 1.00%
Car Wash 1.00%
Crop Inputs 3.00%
Home Centres, Agro Hardware 1.00%
Twine, Feed and Agro Equipment 1.00%
Gas Bars (Fuel & Bulk Fuel) 5.45%
Oils and Lubes 10.00%
The explanation of your equity statement is on the reverse of your statement. There are two steps involved:
First, each member is credited with a patronage allocation. How much you are allocated depends on how much you have spent in each particular department. If you spent $4,000 on groceries in 2018, you would be allocated 1.00% of $4,000,or $40.
Second, the General Cash Repayment cheque you received is calculated as a percentage of the allocation. The percentage that applies depends on how much equity you have accumulated before this year’s allocation, as set out in the following table:
Equity Before Allocation General Cash Repayment
$10 to $1,000 35% of Allocation
$1,001 to $3,000 40% of Allocation
Over $3,000 45% of Allocation
If you had between $10 and $1,000 in equity before this year’s allocation, your cheque would be 35 per cent of your 2018 total allocation from all departments.
The minimum General Cash Repayment cheque issued is $10. Uncashed cheques are cancelled after six months, and the equity is then returned to members’ equity accounts.
For those of you who are over 69 years of age and who applied for equity repayment by April 15, 2019, the enclosed cheque represents repayment of your total equity as of February 2, 2019 (less $10 which is retained to keep your membership active).
For those of you who are over 69 years of age and who applied for equity repayment between April 15 and October 15, 2019, your will receive a December equity repayment.
The Board of Directors of the Saskatoon Co-op wishes to thank you again for your continued and loyal support as we look forward to another successful year in 2019.
Because our continued success depends on the strength of our community, we are committed to being a meaningful contributor to bettering the lives of our those around us. For details click on the attachment below Equity & Cash Back 2019 - Co-op Impact 2018.
Understanding your T4A
T4A's are mailed out in February of each year to members who received a member refund in excess of $100 in June of the preceding year. Please keep your address current.
Saskatoon Co-op is required by CRA (Canada Revenue Agency) to report all member refunds paid in excess of $100.00 and to withhold 15% of the amount earned over $100.00 and remit it to the government. The T4A reflects the member refund made to you in the previous year. Member Refunds are not necessarily taxable. Member Refunds earned on consumer goods (i.e. groceries, household items, gasoline for private car use) are not subject to tax. You are entitled to claim the tax withheld as outlined on your T4A as a credit when you file your personal income tax (write on the face of your T4A "Consumer Goods Only"). Instructions for including this on your personal income tax form are provided on the back of your T4A under Recipient. (Patronage returns are normally only taxable for business persons, farmers, contractors, etc.)
Note: The amount indicated in Box 30 of your T4A is the total patronage allocation amount for the tax year. This number is the total allocation of cash and equity, not the amount of your general cash repayment cheque.