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Do I need to register for GST?

Portrait Of Female Designer Working At Desk In Modern OfficeIt 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. [Read more…] about Do I need to register for GST?

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Thanksgiving and what you need to know about statutory holiday pay

Did you know that that Thanksgiving was once called Turkey Day and was celebrated by First Nations as a feast prior to the European settlers?

Thanksgiving was proclaimed a national holiday in 1879.  Parliament called it “a day of General Thanksgiving to Almighty God for the bountiful harvest with which Canada has been blessed.”

It is celebrated on the 2nd Monday in October.

I always look forward to the turkey dinner, pumpkin pie and the gathering for friends and family. It’s a celebration of the harvest – and back to school!  [Read more…] about Thanksgiving and what you need to know about statutory holiday pay

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Payroll Basics – Statutory Deductions and Net Income

Tax Forms

What are statutory deductions?

The statutory deductions are mandatory deductions required to be deducted from employee pay by employers. These include:

  • Employment Insurance (EI)
  • Canada Pension Plan (CPP)
  • Taxes Payable – both Federal and Provincial

Employers submit these deductions to the government on behalf of their employees.

The Employer is also required to match the insurance, pension plan and calculate the taxes payable on behalf of the employee.

How is employee net pay calculated?

Employers arrive at net pay by deducting the following:

  • Statutory deductions: EI, CPP and taxes
  • Other deductions that are either voluntary or non-voluntary – including pension plan contributions, insurances and union dues

This money is held in trust until the payroll liabilities are submitted to the proper government agencies or other deductions are sent to 3rd parties for health insurance, union dues and pension.

Vacation pay of 4% or 6% may be added to each pay cheque or accrued and paid out when the employee takes vacation.

These statutory deductions are reported on the Information Slip that are sent after February 28 of the following year.

Self-Employed? You can have employment insurance coverage.

As a self-employed person, you can make contributions to EI and collect insurance if you have a break in earnings for parental, pregnancy or family illness situations.

You register with Service Canada, then you can make the payment on self-employment income to Employment Insurance on your tax return.

Additional information about payroll and deductions

Help for calculating payroll – Online Calculator for Payroll Deductions

Information about Canada Pension and Employment Insurance: EI & CPP Explained

Payroll information for a new small business: Payroll information

Plan and maximize your tax savings

Get help with your bookkeeping, payroll, tax returns and tax planning.

Contact Ina for a free consultation.

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Real Estate Agents

When I kept my first home and bought another, I discovered how important it was to work with the right Realtor.

The agent’s professional service and advice guided me through both the sale and purchase process. Their honest negotiating skills meant that I paid a fair price for my second home.

Realtors are experts at buying and selling homes.

I’m an expert in bookkeeping, payroll, and taxes for real estate businesses.

While you’re busy building your reputation as a top real estate agent, Hands on Accounting can look after your bookkeeping and personal tax returns.

We take the figures you provide and turn them into an accurate reporting of the business NET PROCEEDS. We always do an in-depth review to make sure that you can reduce any taxes owed or get a larger refund.

For employees of real estate companies

We take your gross earnings and calculate your taxes with all the employee expense deductions that you are entitled to if you are earning salary plus commissions.

We can help you with your sales taxes for federal and/or provincial.

If you owe taxes, we can help you find ways to reduce or defer what you owe.

For owners of real estate companies

We can look after all of your bookkeeping needs – keeping your expenses up to date and helping with current or capital expenditures.

If you have employees, we can look after your payroll as well.

To learn more about my services:

Or contact me for a free consultation.

 

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Do I need to register for GST?

Portrait Of Female Designer Working At Desk In Modern OfficeIt 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. [Read more…] about Do I need to register for GST?