The 2011 Federal Budget included a perk for small businesses that saw an increase in EI premiums in 2011. The hiring credit of up to $1,000 is automatically calculated by Canada Revenue Agency once your 2011 T4s are filed. Now that you have received this credit how do you account for it in the books? The options are to reduce your EI premium expense or include the credit as income in the year received. My preference is the latter. To account for this in your books the general journal entry is a Debit to Payroll Liabilities and a Credit to Other Income. ...

homestories_tax

Take the mystery out of organizing your tax papers.  If you are a member of the Tri-City Chamber of Commerce, register for this upcoming seminar March 16.  Space is limited. ...

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checklist

There are a number of tasks to complete when wrapping up the calendar year for your business, among them are filing the T4s and WCB return.Don’t panic, you have until February 29th to file but payroll remittances for 2011 must be remitted by January 16, 2012 (date extends to Monday when the 15th falls on a weekend).  Short remittances are subject to penalties so it is a good idea to reconcile your payroll before sending the December payment. T4s may seem like a simple thing to do so why not tackle this on your own and save the accounting fees?  Every year we spend ...

pensions

There are four main changes to CPP effective January 1 2012: The requirement to stop working or reduce earnings in order to apply for early benefits is removed. CPP recipients who continue to work will continue to make premium contributions (as well as their employers) to age 70. The rate of adjustment for early and late pension application increases. The low earnings years ‘drop-out’ provision is increased. These changes do not affect those already receiving CPP retirement benefits UNLESS they will not be 65 before 2012 AND are still earning pensionable earnings. These individuals will have to start contributing again in 2012. For those who are ...

meals

Meals and entertainment expenses are often a significant portion of the advertising budget for businesses. Time spent with clients, potential clients and strategic alliances are a productive way to build relationships which ultimately build business. Often what makes perfect sense to the business owner may not make sense to the tax governing bodies. Understanding the rules will help you make the most of this deduction. Meals and Entertainment For the meal to be deductable for tax purposes it must be incurred for the purposes of producing business income. For example, taking a customer out for lunch or to a hockey ...

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wallet

The minimum wage increased in BC May 1, 2011.  The general minimum wage has been increased to $8.75 per hour.  Liquor servers had their minimum wage increased to $8.50 per hour.  The first job/training wage of $6.00 per hour is no longer in effect.  Check your payroll records before your next payroll run to be sure you are meeting the minimum standards.  For additional information check the BC Government Minimum Wage Factsheet. ...

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