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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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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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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There is a very easy way to avoid paying penalties to Canada Revenue Agency – File on Time.  Late filing penalties start at 5% of the balance owing; then for every month you procrastinate an additional 1% is added, to a maximum of 12 months.  If filing late is a way of life for you (late in any one of the three preceding years), then the penalties increase to 10% of the balance owing plus 2% per month to a maximum of 20 months.  Of course when you owe money to the government penalties are only one part of the extra costs you ...

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