cut-tax

Choosing to incorporate your business has many tax advantages, especially if the corporation meets the criteria of a CCPC (Canadian Controlled Private Corporation).  The three main tax advantages include: 1.  Reduced corporate tax rate.  For corporations resident in BC that qualify for the Small Business Deduction, the corporate tax rate is only 13.5%! (That is a reduction of 17%). 2.  Additional month to pay corporate tax.  The due date for corporate tax payable is extended by one month (from two months after the year end to three). 3.  Capital gains exemption.  When a CCPC is sold, there is an entitlement to the $750,000 enhanced ...

With the abundance of paperwork a business owner is faced with, it can be difficult to keep track of the various due dates.  The penalties for being late, especially with Revenue Canada can be quite punitive.  Creating a ‘Due Date’ checklist can be helpful to keep payments and reporting on track. The Due Date Checklist can be created using any number of programs.  Any program will need the same information. Start by asking yourself what you want to track.  Canada Revenue Agency is one of the more important ‘payees’ so list your obiligations with them:  HST, Payroll, Corporate Tax.  WCB will naturally ...

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. ...

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 ...