19Apr 2022 by admin No Comments

How to set up My Business Account

Tax Returns
How to set up My Business Account with CRA, this is the first thing you want to do once you have incorporated, and secured a business number.  Setting up My Business Account with CRA is a relatively simple process.  First of all, you will need to have already registered for a MyBA account.  Find out how to register for MyBA. If you already have a MyBA account, simply go to CRA login services, select “My Business Account” and use your CRA user ID and password to login. Once logged into MyBA , select “Manage business number(s) in your profile”, and then select “Add a business” to add your organization's Business number. Authorizing a Representative Once your "My Business Account"  is linked to your "My Account", you can appoint a representative…
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18Jun 2019 by admin No Comments

2019 Best Desktop Scanners for Small Business

Electronics
2019 best desktop scanners for small business.  I think that one of the most wonderful invention for the small business is the desktop scanner that can clear away paper clutter, chase away the paper monster and turn the office into a paperless place. While today's computer can generate electronic documents that are passed around via email,  hard copy receipts for purchases are paper documents that come in all kinds of inconvenient sizes, particularly for small business owners and business travellers.    The CRA recommends keeping your tax records for at least six years. Six years can translate to a mountain of paper. As office space become a costly item, more and more businesses are scanning their receipts and storing them in the cloud.  One of the ways of switching to  paperless office (or paper-free office); is to…
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01Jan 2019 by admin No Comments

How to manually calculate CPP contribution

Payroll
The basic exemption for CPP contribution is $3500.  In other words, the first $3500 income is exempt from CPP premiums. The question is, how do we prorate this $3500 exemption over the year.  Here is an excerpt from CRA website.  How to manually calculate the amount of CPP contributions you have to pay As an employer, you have to pay the same amount as your employee. Multiply the result of step 4 by 2. Example Joseph receives a weekly salary of $500 and $50 in taxable benefits. Calculate the amount of CPP contributions that you have to pay. Step 1: Calculate the basic pay-period exemption $3,500 ÷ 52 = $67.30 (do not round off) Step 2: Calculate the total pensionable income $500 + $50 = $550 Step 3: Deduct the basic pay-period exemption from the total pensionable income $550 – $67.30 = $482.70 Step 4: Calculate the amount of CPP contributions $482.70 × 4.95% = $23.89 Step 5: Calculate the…
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01Jan 2019 by admin No Comments

CPP EI rates for 2019

Payroll
Canada Revenue Agency has announced that employee and employer CPP contribution rates for 2019 will be 5.1 per cent, up from 4.95 per cent in 2018.  For self-employed individuals, this means a total of 10.2% for both employer and employee shares. Meanwhile, there is good news.   The EI contribution rate has decreased from 1.66% in 2018 to 1.62% in 2019.  For more information, click here. The maximum employer and employee contribution to the CPP for 2019 will be $2,748.90 each, and the maximum self-employed contribution will be $5,497.80. The maximums in 2018 were $2,593.80 and $5,187.60, respectively.  
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09May 2018 by admin No Comments

Manage Online Mail with CRA

Tax Returns
Online mail is a user friendly service that allows individuals to receive mail from CRA. Mails such as Notice of Assessment or Benefit notices, through Canada Revenue Agency (CRA) MY ACCOUNT. When you sign up for online mail, the CRA will send you an email letting you know when you have new mail to view in My Account. Once you are signed up for online mail, you can go paperless since you will receive all your correspondence online, and they will no longer be printed and mailed. It also acts as your file cabinet - should you or your bank ever need a paper copy, all you need to do is log in to My Account, print or download a copy. Changing your Email address with CRA. 1.One way to…
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08May 2018 by admin No Comments

Who gets Child Tax Benefits under Shared Custody

Tax Credits and Benefits, Tax Returns
  Who gets the child tax benefits when it comes to shared custody.   Not all marriages have a happy ending.  In fact, a big percentage ends in divorce, not a friendly divorce, but a hostile one.  In such case,  the divorced or separated parents may no longer talk to each other, and the child tax benefits become an issue, even in shared custody. The Child Tax Benefit (CTB) is a tax-free monthly payment made to eligible families to help them with the cost of raising children under 18 years of age.   Who gets the Child Tax Benefit is pretty straight-forward, until there is a separation or divorce, and child custody arrangements have changed. Who is eligible for child tax benefits? The ITA says you are eligible for child benefits if you are a…
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02May 2018 by admin No Comments

Are tips subject to CPP and EI

Payroll, Tax Returns
Are tips subject to CPP and EI.   Employees in the hospitality business, such as restaurants, hair salons, coffee shops, hotels... usually receive tips in one form or another.  Do they or their employers need to pay CPP and/or EI on the tips income.  This depends on the types of tips.    Tips can be controlled or direct. Controlled tips are gratuities that are controlled by the employer. Since they are controlled by the employer, the employer is considered to have paid these amounts to the employee. The employer adds a mandatory service charge to a client's bill to cover tips; The employer adds a percentage to a client's bill to cover tips; Tips allocated to employees using a tip sharing formula determined by the employer; Tips that an employer includes…
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02Apr 2018 by admin No Comments

Choosing a Corporation Fiscal Year

Corporations, Tax Returns
Choosing a corporation fiscal year is a decision every new corporation must make.  CRA established some very basic guidelines:  The corporation's tax year, also called its fiscal period, cannot be longer than 53 weeks (371 days)  For new corporations, you can declare your tax fiscal year on your first T2 return after incorporation. Make sure the financial statements you attach to the return match the tax year of the return. On your first T2 return after incorporation, use the date of incorporation as the tax year start. For all subsequent returns, your tax year start will be the day after your tax year-end. Your fiscal year end is a date you must remember by heart, because your corporate tax returns due date is based on your fiscal year end. When to file your…
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07Mar 2018 by admin No Comments

Special tax filing rates for students

Tax Returns
Special Tax Filing rates for Students Accounting Troubleshooters is pleased to offer a $49.95 special pricing for students tax returns. To qualify, a student must have at least four months of full time enrollment at a high school, college or university. Why students should file a tax return: Every student should file a tax return whether or not you earn an income or owe any income tax. Benefits for student tax filings: 1. Earn GST/HST tax rebates · A GST rebate of up to $248 per adult and $130 per child. · A Goods and Service Sales Tax (GST) rebate of up to $230 (when you are 19 years or over and earn less than $20,000). 2. Transfer education credits As a student, you can share or transfer your education tax…
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