If you’re newer to business and having trouble understanding what payments to make on your 2020 return, or are having trouble navigating CERB, CEBA, CEWs and TWS I calculations, Hands on Accounting is here to help.
Tax season is upon us- and navigating payments is tricky- if you’re a business owner who suspects you owe taxes for 2020, we’ll help you reduce your taxes payable (there’s still time left so; act quickly!).
In order to understand your government payments for the year, it’s important to look at the following possible sources of income on your 2020 return:
- Employment income
- Retirement income
- Rental income
- Contractors/ consultants
- Incorporated business
We outline more details on the possible sources of income below.
Employment Income
Employment income is income you’ll report on your personal tax return for 2020. This includes CERB, employment income, commissions and bonuses.
Retirement Income
If you received retirement income in 2020 (including pensions and investments), we help you calculate your return for The Canada Pension Plan and Old Age Security Fund.
Hands on Accounting also helps you sort out interest income and dividend income on your return.
Rental Income
If you received rental income this year, and are completing your rental return statement, we make life easier by doing the bookkeeping for you.
Please note; if you are currently without a statement complete to receive government funding, preparing a tax return will help you plan your future savings.
Contractors/Consultants
If you’re working as a self-employed contractor, running a business, or providing consulting work as an employer, everything is the same with the exception hiring employees.
Are you having experienced income loss this year received CEBA is grant as income 2020, and it’s important to keep a record of this for your 2020 return.
Keep in Mind that if you are receiving CEWs, or TEWs this is taxable too.
Business is a corporation
If you’re a corporation, you’ll likely qualify for business loans, refunds for CEWS, and TEWS 10% deduction. If you don’t have a human resources department, Hands on Accounting helps you with the calculations including filing Sales Taxes Returns and Workers Compensations.
More about installments payments
Learn more about installment payments so that you’re running your business debt free and paying your personal taxes on time.
For further information, contact Ina for a virtual consultation.
NEED HELP filing your personal taxes for 2018 or prior years, we are open for the new tax season starting filing taxes 11 February 2021.
If you’re doing your own accounting and don’t have training as a bookkeeper, it can be easy to make mistakes that negatively impact your business. Here are 7 common mistakes business owners make with their bookkeeping.
There are many places you can sell your tax return to get an instant refund.