You can reduce the amount of income tax you are required to pay by contributing to a Registered Retirement Savings Plan (RRSP.)
The clock is ticking. You have 60 days from the beginning of each year to make your contribution. This year’s deadline is March 1, 2017.
RRSP contributions are deducted from your earned income to reduce or defer any taxes payable. [Read more…]
It depends.
GST/HST registration is mandatory in some cases. It is voluntary in others.
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.
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.
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
The statutory deductions are mandatory deductions required to be deducted from employee pay by employers. These include:
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.
Employers arrive at net pay by deducting the following:
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.
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.
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
Get help with your bookkeeping, payroll, tax returns and tax planning.
Contact Ina for a free consultation.
When I started my business, the Accountant was the bookkeeper for the business. Now the Professional Bookkeeper takes on this role of performing the full cycle record-keeping including payroll.
Bookkeeping is the systematic practice of recording the financial transactions of a business. These include:
Your bookkeeper will keep your records up to date by entering transactions to track the revenues and expenditures. They will also reconcile the statements and accounts. They do not perform any audit functions. [Read more…]
When you bring us your 2018/2017 tax returns all prior years up to 2009.
Bring 2009 Tax Return by January 15, 2020.
Black Friday – Canada 2019– free review on prior years.
We can take the worry out of filing your tax returns, bookkeeping or payroll. We review your taxes situation, so you understand if you,
Let you know if you qualify for deductions or tax credits so you reduce taxes payable or get a larger refund. We prepare all the tax returns if you have not filed your tax returns in the last 10 years. [Read more…]