When paying bonus to your staff in Canada, the following amounts must be deducted: Canada Pension Plan (CPP) contributions (excluding the basic exemption amount if paid separately), Employment Insurance (EI) premiums, and income tax. Calculating Bonus: Tips and Considerations While bonus pay can be a powerful employee incentive, it’s not always guaranteed. To be eligible […]
Tips for Establishing Your Company’s Fiscal Year
What is a Fiscal Year and How to Choose the Right One for Your Company? A fiscal year, also referred to as the financial, tax, or accounting year, is the designated 12-month period that a company follows to report its financial information. This period can either be a calendar year or a customized year. It’s […]
Mastering Work Expenses: 5 Tips for Accurate Tax Returns
What qualifies as an employment expense? While working the 9-5 grind, it’s common to incur various expenses related to your job for mastering work expenses. Many Canadians find themselves paying for work-related items out of their own pockets. However, it’s important to exercise caution when claiming these expenses. Not everything you purchase for work is […]
Tax Essentials for Single Parents
Tax for Single Parents: Maximizing Benefits with Assistance from the CRA and Revenu Québec Managing a family is undoubtedly a challenging endeavor, but when it comes to tax for single parents matters, the Canada Revenue Agency (CRA) and Revenu Québec provide various avenues of support to help ease the financial burden. Understanding how your unique […]
Claimable Medical Expenses: Tax Benefits
Maximizing the Medical Expenses Tax Credit One commonly overlooked nonrefundable tax deduction is the medical expenses tax credit. While many Canadians are aware of its existence, a significant number fail to maintain proper records or stay updated on their medical expenditures. It’s important to note that, in addition to yourself, you can claim this tax […]
How to Understand Carbon Tax
The Proactive Solution to Climate Change: Understanding the Carbon Tax and Its Impacts. Canada and communities worldwide are experiencing the consequences of climate change, from extreme weather events endangering lives and homes to long-term, life-changing effects. Canadians pay the price through increased insurance premiums, higher costs for food, health care, and emergency services, as well […]
Tax Credit for Ensuring Safety in Senior Homes
Eligibility Criteria and Qualifying Expenses for Safety in Senior Homes and Tax Credit in Canada To qualify for the safety in senior homes tax credit in Canada, the applicant must meet certain eligibility criteria. The person applying must be at least 65 years old by the end of the year and reside with an elderly […]
Financial relief available for low-income households
Amidst inflation and increasing living expenses, hard-working low-income Canadians can now receive a much-needed financial boost. Introducing the Canada Workers Benefit for low-income households, a refundable tax credit designed to offer essential relief. Unlock Financial Relief with the Canada Workers Benefit for low-income households: Basic Amount and Disability Supplement When filing an income tax return, […]
Unlocking the Benefits of RESPs: Free Money Awaits!
As a parent, the daunting task of financing your child’s education is likely on your mind. Fear not, for the Registered Education Savings Plan (RESP) is here to provide a solution to the escalating costs of tuition. Through Canada’s benefits of RESPs, you not only receive government contributions towards your child’s educational journey but also […]
2024 Income Splitting Rules in Canada
As of January 01, 2019, the federal government implemented an expanded Tax on Splitting Income (TOSI), which had significant implications for small business owners and their families. Prior to 2019, they enjoyed certain tax benefits that were no longer available due to the new rules. To help you understand how these changes will affect you, […]