writing

The Fairness for Self-Employed Act now allows self-employed persons access to EI special benefits on a voluntary basis; these benefits include: Maternity benefits – maximum 15 weeks, available to birth mothers, Parental / adoptive benefits – maximum 35 weeks, available to biological or adoptive parents while caring for a newborn or newly adopted child.  May be taken by either parent or shared between them, Sickness benefits – maximum 15 weeks, available to a person who is unable to work because of sickness, injury or quarantine, Compassionate care benefits- maximum 6 weeks, available to persons who must be away from work temporarily to ...

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money

If you consider ONLY the income tax (BC Personal tax and the Active Small Business Corporate tax rate), you should be indifferent what form your income takes – either salary or dividend.  Our tax system is designed so that there is close integration of tax on these two sources.  However, there are several other factors that should be considered when making the salary versus dividend decision including: CPP EI RRSP Contribution Limit Income splitting Old Age Clawback CPP contributions are NOT paid on dividends Although the savings from not contributing to CPP can be quite substantial (the maximum contribution for ...

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2-writers

Procrastinating doesn’t always pay off.  For those of you who are still gathering your tax papers, we suggest that you make a tax instalment by April 30.  Tax returns that arrive at our office after we break for Easter weekend, may not be filed by the end of the month.  To minimize interest and penalties charged, you may want to consider making a tax instalment.  Refer to our Tax Brochure on the home page for an estimate of tax at various levels of income. ...

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pencil

The following are 4 commonly made mistakes that can problems on tax returns in Canada. RRSP Contributions not claimed RRSP contributions made in the first 60 days of the year (Jan 1 – Mar 1 2010) must be reported on the personal income tax return for the previous year (2009), even if not claimed as a deduction. Contributing to non-registered charities Contributions made to Canadian registered charities may be claimed on your tax return. Check your receipts for a RR# indicating the charity is registered. Appliances do not qualify for the Home Renovation Tax Credit There are many other expenses that qualify – for a ...

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nest

The goal of an RRSP is to save for your retirement, accessing the funds when you will be in a lower tax bracket.  Depending on your age and other income at retirement, it is usually beneficial to contribute 10 – 20% of your taxable income.  To determine the amount that will achieve your financial goals, make an appointment with your financial planner. Before you contribute to your RRSP check your contribution limit using Quick Access on the CRA website or your 2008 Notice of Assessment. Watch that you don’t over contribute – CRA has started to impose penalties on excess over contributions. To use Quick ...

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saving-acct

Open a Tax Free Savings Account (TFSA) to save for anything you want – a car, a vacation, a wedding…  Most of us have a rainy day fund – for the unexpected things in life – a TFSA is the perfect account for this type of savings.  If you are 18 or older, you can contribute up to $5,000 per year. The funds can be withdrawn and re-contributed without tax penalty.  The contributions won’t lower your taxes but the income earned in the TFSA isn’t taxable either.  If you don’t have enough to put into the TFSA now, don’t worry, the unused ...

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