Your Co-op membership offers you a lifetime of rewards including the promise of high-quality products and service at competitive prices. We also offer the potential for annual cash-back and an equity account that grows over time, as well as the opportunity to get involved as a member-owner. This makes us a different kind of business; our profits are your profits and they are invested directly back into the community through you.
T4A's are mailed out in January 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.
Saskatoon Co-op Equity & Cash Back
Over 6 million cash to be paid out to local member-owners in 2016. Equity statements will be out in mid-June!
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 2015, with sales of $415,000,000.
This success has permitted the Board of Directors to authorize for the 23rd year in a row a general cash repayment to the Co-op’s owners – you, the members. The total cash to be paid out to members for General Repayment, Estates, Over Age and Left Trading Area is $6.0 million.
Did you know that if you earned an allocation of $34 or more at the Saskatoon Co-op in 2015, you would have received a general repayment cheque this year! The minimum general cash repayment cheque issued is $10.
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%
Twine, Feed and Agro Equipment............1.50%
Home Centres, Agro Hardware
and Crop Inputs.......................................... 2.00%
Gas Bars (Fuel & Bulk Fuel)......................6.20%
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 an 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 2015, you would be allocated 1.00% of $4,000, or $40.00.
Second, the actual 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 30% of Allocation
$1,001 to $3,000 35% of Allocation
Over $3,000 40% of Allocation
If you had between $10 and $1,000 in equity before this year’s allocation, your cheque would be 30% of your 2015 total allocation from all departments.
The minimum General Cash Repayment cheque issued is $10.00. 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, 2016, the cheque that is enclosed represents repayment of your total equity as of January 30, 2016 (less $10.00, which is retained to keep your membership active).
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 2016.
Co-ops have an open membership. Many co-ops include minimum age requirements for members in their bylaws.
Being a co-op member means that you own a share of a business in your community.
To become a member:
- You purchase an initial share in the co-op (see the Become a Member page for details related to your local Co-op).
- You receive a co-op membership number.
Every time you make a purchase at your co-op, you will be asked for your number, which is used to record your purchases. Your purchases are recorded because your share of the co-op’s earnings is based on your purchases through the year.
Your local co-op number works only within the communities served by your local co-op. Communities served by other co-ops will not use the same member number. Each co-op is independent and has different policies regarding equity and cash back.
No, but by becoming a member you become a part owner of the business and share in the earnings of the co-op. You can also attend annual meetings, vote on resolutions and run for a position on the Board of Directors.
Earnings from the co-op are distributed to members based on their purchases during the year. Earnings are returned to members either as equity or cash, depending on each co-op’s financial situation.
The cash portion is paid out to you each year.
The equity portion is your money that is being held back by the co-op to help finance the business, and maintain and upgrade assets to ensure ongoing success.
Equity is normally paid out:
- when you move away from the trading area or
- when you reach a certain age as specified by the Board of Directors or
- when the equity is paid to your estate.
- A tax of 15% is withheld from refunds exceeding $100.
- If your purchases are for personal use they are not taxable and you can claim back this amount as pre-paid income tax by using box 22 of your T4A and including this amount on line 437 of your income tax return.
- If your purchases are for business purposes the amount of your refund can be included as part of your income tax calculation.