Blog

December 7, 2021 by Ina Turner

Do I need to register for GST?

It depends.

GST/HST registration is mandatory in some cases. It is voluntary in others.

You don’t have to register for GST/HST if:

Your revenue does not exceed $30,000 in a single year. If you are a “public service body” the threshold amount is $50,000.

In this case you are considered a “small supplier” and do not need to register.

Keep in mind that a “single year” is any 4 consecutive quarters. You will need to calculate this amount at the end of each quarter to ensure that you haven’t crossed the threshold.

If you are not registered for GST/HST, you don’t charge it to your customers. You also cannot claim back any “Input Tax Credits” on your purchases.

You may choose to register for GST/HST if you want to – but it is not mandatory in this situation.

You MUST register for GST if:

Your revenue exceeds the threshold amount in a single year – defined as 4 consecutive quarters.

Once you cross the threshold, you will have 29 days to register and begin collecting GST/HST.

After you register for GST/HST, you must collect it on all taxable sales. You are also eligible to claim “Input Tax Credits” for any GST/HST you pay on your business purchases.

You will also need to file a GST/HST return – monthly, quarterly or annually.

You must wait one year before unregistering the GST/HST account if you are no longer using the account.

Have any more questions? Need help with your GST/HST?

We can help you keep your books up to date and file your GST/HST Tax Returns for you.

Contact Ina for a free consultation.

More information about GST is available from the CRA website

November 2, 2021 by Ina Turner

Getting Your 2021 Tax Payments On Track

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.

October 4, 2021 by Ina Turner

Hire right bookkeeper avoid mistakes

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.

1. Missing deadlines and not being in compliance with CRA

This can cost you money in penalties and interest. For more information: what you need to know about government deadlines.

2. Incorporating your business or filing for GST/HST too early

[Read more…]

September 15, 2021 by Ina Turner

Don’t know how to calculate your payroll?

How is your employee net pay calculate with employment expenses?

Arriving at net pay for your employee’s pay period is different what goes on employee expenses?

Are you a licensed real estate agent, the salesperson on a salary/commission or truck driver?

Deducting out of pocket expenses are not [Read more…]

September 3, 2021 by Ina Turner

Labour Day 2021 Canada

Celebrating Canada’s Labour Day

In 1872 Over 10,000 Printer’s Revolted in a 9-hour march in the streets of Toronto to established a maxim work week.

Eventually, Sir John A. MacDonald Prime Minister of Canada in 1872, had to repeal the laws in favor of the organize unions.

The Printer’s strike help to form the annual Labour Day Celebrations across Canada – adopted in 1894 by the government of Prime Minister John Thompson – as we see today! [Read more…]