FAQ About Member Equity Cheques
FAQ About Member Equity Cheques
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Frequently Asked Questions regarding Member Equity Cheques
What is Equity?
Once each year, a portion of your Co-op’s profits are returned back to you based on a proportion of your total purchases.
The more you buy, the more equity you earn and more cash you get back!
Why am I not receiving an equity cheque?
It depends! If your purchases haven’t met a minimum threshold you may not be receiving a equity cheque.
Cheques $10 and under are added to your equity shares. The funds are still yours, and will accumulate over time. You may have also joined outside our fiscal year.
We recommend reaching out to our Administration Team to verify.
What happens to the remainder of my equity?
The remainder of your equity stays in your equity share account at Alberni Co-op.
It supports the on going success of your local Co-op.
Equity Shares may be paid out per our by-laws. Check with our Administration Team for details.
How does allocation work?
Each year the Alberni Co-op Board of Directors decide on the allocation
amount based on our financial statement. You can learn more at our yearly Annual General Meeting.
When is a cheque no longer valid?
Under the Canadian Payment Association a cheque is no longer valid after six months.
I didn’t cash my equity cheque last year, what happened to the funds?
Uncashed Equity Cheques are returned to the Members Equity Fund and may be paid out per our by-law.
Check with our Administration Team for details!
How do I cash my equity cheque?
Your equity cheque may be cashed at your financial institution.
Equity Cheques are not accepted at our store locations or administration office.
When can I get my equity paid out?
Contact our Administration Team for details!
Why is Tax deducted off my statement?
Alberni Co-op is required to submit a minimal amount of tax to Revenue Canada.
Fifteen percent of any allocation over $100 is submitted on your behalf.
When filing your income tax, you are entitled to include the deduction (box 22 on the T4A) as a pre-payment of income tax.
If your purchases were used for personal use only, the allocation (box 30 on the T4A) does not need to be included as part of your taxable income.
If you are claiming some or all of the purchases as business/farm expenses, then you must include an applicable portion of that allocation as taxable income on your income tax form.
T4A’s are issued at year end.
Why did I not receive a T4A?
You may not have received a T4A because the allocation was under $100. We recommend connecting with the Administration Team to verify.
