Are you self-employed? Here’s what the Canada Pension Plan enhancement will mean for you As a self-employed person, you are juggling the unique role of both employer and employee. You need to carefully plan for changes that affect your budget. That’s why it is important for you to know about the Canada Pension Plan (CPP) enhancement, which kicks off this January. Starting January 1, 2019, you will invest slightly more in the CPP to help you build a more secure retirement. The enhancement will increase the maximum CPP retirement pension benefit by about 50 per cent, once mature. To fund enhanced benefits, annual CPP contribution rates will increase modestly over seven years. The gradual increase is designed to help you adjust. What’s new? On January 1, 2019, your CPP contribution rate will increase from 9.9% to 10.2% of your CPP pensionable earnings. You will be able to deduct both the employer... View Article
We work with amazing people – we want you to get to know them.As a Consumer Choice Award Winner, we understand that our business wouldn’t be award winning without our clients and customers. We work with such amazing people who work tremendously hard as small business owners. It’s important to us to share their stories because their businesses make our business better!
Owning and running a successful business can be a lifelong dream but it can also be an onerous task. Bookkeeping and running the financial side of your business is not always an intrinsic skill for every small business owner. So why do you leave the financial side of the business in unskilled hands? If we’re right and this is you, you should consider enlisting the help of a professional to set your business up for success. Here’s a look at some of the benefits of and considerations involved with hiring an external bookkeeping service for your business. Save Time When you spend less time on tasks like bookkeeping, you’ll enjoy more time to focus on your clients, customers and other areas of success. Besides, the bookkeeping you do may take you much longer than it would a professional. Not only does this make it ‘too costly’ for you to do... View Article
Padgett Business Services Hamilton Celebrates 30 Years in Business. Martine Holjevac, franchise owner of Padgett Business Services, is proud to announce three decades of working with small businesses in Hamilton. In 1987 she recognized that small business in Hamilton were in need of affordable accounting services and she jumped at the chance to buy a franchise that would serve this niche market. â€œI got into business all those years ago because I saw a gap in the market and understood there was a need for savvy tax advice for businesses. The opportunity to buy into a franchise was quite novel at the time so I took a chance,â€ said Holjevac. Thirty years ago, this franchise model was new in Canada and Holjevac was one the first two originally sold in the country nation-wide.Â Her instinct paid off and within five years she had won Padgettâ€™s prestigious Office... View Article
Did you know that our income tax system is now 100 years old? Did you know that the income tax system was originally meant to be temporary? How much do you think Canadians have paid to date in income taxes (over 100 years)? Read this article and find out! According to Global News, income taxes were “meant to be a way to raise extra money during the First World War and have stuck around ever since.” By 2016, it is estimate that Canadians have contributed 148 billion to the income tax system. This amount accounts for just under half of all government revenues. For the full story, go to the link: http://globalnews.ca/news/3620689/canadas-income-tax-100-how-much-canadians-have-paid/
Does you child need insulin therapy? Do you have hearing loss? Have you undergone surgery which led to complications? Lots of Canadians are entitled to the Disability Tax Credit and are not collecting it and in many cases, they are not collecting retroactively but they may be entitled to do so. What is the Disability Tax Credit? The disability tax credit (DTC) is a non-refundable tax credit that helps persons with disabilities or their supporting persons reduce the amount of income tax they may have to pay. An individual may claim the disability amount once they are eligible for the DTC. This amount includes a supplement for persons under 18 years of age at the end of the year. The purpose of the DTC is to provide for greater tax equity by allowing some relief for disability costs, since these are unavoidable additional expenses that other taxpayers don’t have to face. Being eligible... View Article
Is Your Family Growing? Here are some of the tax benefits…..Are you expecting a baby? If you are the birth mother of a newborn, you can use the Automated Benefits Application on the birth registration form when you register your newborn with your province. This allows you to apply for the Canada child benefit, the GST/HST credit, and related provincial or territorial programs for your child.
Are you expecting a baby? If you are the birth mother of a newborn, you can use the Automated Benefits Application on the birth registration form when you register your newborn with your province. This allows you to apply for the Canada child benefit, the GST/HST credit, and related provincial or territorial programs for your child. There may be other credits and benefits for your family. Check out this link for all the details and a chart to determine what you are eligible for: http://www.cra-arc.gc.ca/bnfts/menu-eng.html
Canada Pension Plan Basics The Canada Pension Plan (CPP) is a contributory, earnings-related social insurance program. It ensures a measure of protection to a contributor and his or her family caused by the loss of income due to retirement, disability and death. There are three types of CPP benefits: → Disability benefits (which include benefits for disabled contributors and for their dependent children); → Retirement pension; → Survivor benefits (which include the death benefit, the survivor’s pension and the children’s benefit). The CPP operates across Canada, although the province of Quebec has its own similar program, the Quebec Pension Plan (QPP). The CPP and the QPP work together to ensure that all contributors are protected. With very few exceptions, every person in Canada over the age of 18 who earns a salary or a wage must pay into the CPP. You and your employer each pay 50% of the contributions.... View Article
If you moved closer to your work or school, you may be eligible to claim moving expenses. Here are the rules. Call our office if you need help or more information: Line 219 – Moving expenses You can claim eligible moving expenses if: you moved and established a new home to work or run a business at a new location; or you moved to be a student in full-time attendance in a post-secondary program at a university, college or other educational institution. To qualify, your new home must be at least 40 kilometres (by the shortest usual public route) closer to your new work or school. http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/219/menu-eng.html?utm_source=twttr&utm_medium=scl_md&utm_campaign=
Are you participating in the sharing economy? Are you selling goods on Kijiji, driving for Uber or renting your home on Air BNB? Everyone should be reporting their income but they don’t always. But without reporting your income, you also can’t take advantage of the potential tax credits/deductions available to you. Say for example, you rent your house on Air BNB – you’re treating it like a business but not claiming the income you generate. According to statistics Canada, 69000 Canadians rent out some or all space in their home in some kind of peer to peer network, for example but there is generally a lack of knowledge about who needs to declare income. As a general rule, income you generate from any endeavour should be reported. Companies like Uber can and do provide reports to their drivers about the income earned. That also means that you can take advantage of... View Article
Which medical expenses can you claim? To know for whom you can claim medical expenses, see How do you claim eligible medical expenses on your tax return? You can claim only eligible medical expenses on your tax return if you, or your spouse or common-law partner: paid for the medical expenses in any 12-month period ending in 2016 did not claim them in 2015. Generally, you can claim all amounts paid, even if they were not paid in Canada. For all expenses, you can only claim the part of the expense that you or someone else have not been and will not be reimbursed for. However, the expense can be claimed if the reimbursement is included in your or someone else’s income (such as a benefit shown on a T4, Statement of Remuneration Paid, slip) and the reimbursement was not deducted anywhere else on the income tax and benefit return.