Tax Tips by Tax Accountant in Brampton

• Flexible employee benefit programs, which allow  employees to custom design their own package of health and other benefits,
  are becoming ever more popular in the workplace. Care should be taken when  structuring such plans, however, because taxable benefits can result. If,  for example, an employee accumulates flex credits and those benefits are received in cash, that amount is generally considered taxable income by Tax Accountant at Brampton.
  

  Accountant Brampton

• Employees who are awarded near-cash merchandise such
  as a gift certificate must take the fair market value of that award into
  account as taxable income.

• If you receive more than two non-cash gifts or  awards from your employer, select the two with an aggregate cost closest  to $500 as your entitlement. For example, if you received four awards that
  cost $300, $200, $150 and $100 respectively, select the first two awards  (costing $500) as being non-taxable and declare the $250 cost of the remaining two in Brampton.

• An employee or ex-employee who receives periodic payments in Brampton under a disability insurance plan, sickness or accident insurance  plan or income maintenance insurance plan to compensate for loss of income  from an office or employment must include that amount in income if the  plan’s premiums were paid for by the employer; however, they may deduct  from income any amount they may have personally contributed toward such a plan according to Tax Accountant at Brampton.

• A lump sum payment (as opposed to a periodic  payment) received from a lawsuit or other source to settle a dispute  concerning disability or similar income compensation might be non-taxable
  under some circumstances, Tax Accountant Brampton ON.

• Under some circumstances an employer provided computer in Brampton and Internet service might not represent a taxable benefit if  employees require such a service to carry out their business obligations.

• If you receive an arbitration award from your  employer for reasons such as a collective agreement breach to compensate  for lost wages, or you receive retroactive payments as a result of a
  decision such as pay equity, you should consult a tax accountant in brampton to determine the appropriate tax treatment for that payment.  The rules can differ depending on the compensation received.

• Where there has been a reduction in the option price  to an amount below the value of the underlying share when the option  was granted, the taxpayer might still be able to claim the stock option deduction.  It could still be available where an employee stock option plan provides  participants the option of acquiring shares at their FMV when the option  was granted – even if the plan is amended at a later date in Brampton ON.

 

For more information please call Karn, Tax Accountant at Brampton.

Hiring Credit of $1,000 for Small Business by Accountant in Brampton

1.What is the Hiring Credit for Small Business (HCSB)?

The HCSB is a one-time credit of up to $1,000 based on the increase in an employer’s employment insurance (EI) premiums paid for 2012 over those paid for 2011 by Payroll Accountant in Woodbridge ON. You don’t need to apply for this credit, it is automatically credit to you, if you qualify for this benefit by your Payroll Accountant in Woodbridge.

2. Who is eligible for the HCSB and how will it be calculated?

A small business at Woodbridge On, whose total employer’s EI premiums paid for 2011 was $10,000 or less and whose total premiums increased in 2012 is eligible for a credit. The credit is calculated as the difference between these two amounts up to a maximum of $1,000. The CRA will automatically calculate the credit when an eligible employer’s 2012 T4 information return is filed by your Payroll Accountant at Woodbridge ON.

3. Is there a time limit for obtaining this credit?

Yes, employers must file their 2012 T4 information return(s) before January 1, 2015 by Payroll Accountant at Woodbridge ON. No HCSB will be allowed based on an information return filed after this date.

4. If an employer meets all of the above listed eligibility criteria but has an outstanding debt with the CRA, will the CRA still calculate the credit?

Yes, the CRA will calculate the HCSB and will apply the amount of the credit towards any outstanding debt owed by the employer.

5. Can employers reduce their 2012 payroll deduction remittances by the HCSB they anticipate they will receive rather than waiting until the credit is calculated?

No. Employers are not permitted to short remit their 2012 payroll remittances by the amount of the HCSB they think they will receive. The credit will only be calculated once the 2012 T4 information return is filed by your accountant at woodbridge on. For more please call Karn, Payroll Accountant at Woodbridge ON.

For more information:

http://www.cra-arc.gc.ca/hiringcredit/

2012 Payroll Changes by Accountant in GTA

What are the changes?

Individuals 65 years of age or younger

 

Starting January 1, 2012, you will now have to contribute to the CPP if you are:

• receiving a CPP or QPP
  retirement pension; and
• working.

Individuals 65 to 70 years of age

Starting January 1, 2012, unless you elect to stop contributing to the CPP, you  will now  have to contribute to the CPP if you are:

• receiving a CPP or QPP  retirement pension; and
• working.

How do you stop contributing to  the CPP?

The method is different if you are an  employee, self-employed or if you are both an employee and self-employed.

Note

To get the maxium benefit of CPP, seniors should apply for CPP at age 65 or 70 by your accountant GTA. To  find out how the changes may affect your CPP benefits, go to Service Canada Web site or call your Accountant in Greater Toronto Aarea (GTA).

Employee

If you are an employee, at least 65 years of age but under 70 and receiving a CPP or QPP retirement pension, you can  elect to stop contributing to the CPP.

You can elect to stop contributing to the  CPP, by:

• completing Form CPT30, Election to Stop Contributing to the Canada Pension Plan,
  or Revocation of a Prior Election;
• giving a copy to all your  employers; and
• sending the original to the  Canada Revenue Agency.

The election takes effect on the first day of  the month following the date you give a copy of the completed Form CPT30 to your  employer. For example, if you give Form CPT30 to your employer on June 22,  2012, the election will take effect on July 1, 2012.

Notes

You cannot elect to stop contributing to the CPP until you are at least 65
years of age.

The election stays in effect until you turn 70 years of age or until you revoke the election.

Self-employed

If you are self-employed, at least 65 years of age but under 70 and receiving a CPP or QPP retirement pension, you can  elect to stop contributing to the CPP.

To do so, complete the applicable section of  Schedule 8, CPP
Contributions on Self-Employment and Other Earnings for 2012 and
file it with your Income Tax and Benefit Return for 2012 by your Payroll Accountant in GTA. Do  not use Form CPT30, Election to Stop Contributing to the Canada Pension Plan,  or Revocation of a Prior Election.

You cannot elect to stop contributing to the  CPP until you are at least 65 years of age. The earliest month an election can  take effect is the first month following the month of your 65th birthday. For  example, if you turn 65 on July 15, 2012, the earliest month an election can  take effect is August 2012.

Note

The election stays in effect until you turn 70 years of age or until you revoke the election.

Individuals
receiving both pensionable earnings and self-employed earnings

If you are both an employee and  self-employed, at least 65 years of age but under 70 and receiving a CPP or QPP retirement pension, you can
elect to stop contributing to the CPP.

You can elect to stop contributing to the  CPP, by:

• completing Form CPT30, Election to Stop Contributing to the Canada Pension Plan,  or Revocation of a Prior Election;
• giving a copy to all your  employers; and
• sending the original to the  Canada Revenue Agency.

The election takes effect on the first day of  the month following the date you give a copy of the completed Form CPT30 to  your employer. This date applies to both your pensionable earnings and  self-employment earnings. For example, if you give Form CPT30 to your employer
on June 22, 2012, the election will take effect on July 1, 2012.

Notes

You cannot elect to stop contributing to the CPP until you are at least 65
years of age. The election stays in effect until you turn 70 years of age or until you revoke the election.

For more information:

http://www.cra-arc.gc.ca

Trademarkes in Canada with Accountant

When registering a trademark please ensure that your trademark is not similar with other trademarks that are already registered by your accountant at Bolton ON. For  more information please call Karn at 905-794-8283.

Starting a Business in Canada with Accountant at Brampton

Check List Of Documents For Business Taxes by Accountant in Brampton

Required documents Check List for new businesses starting in Brampton:

– Invoices (on purchases)
– Invoices (on sales)
– Utilities bills
– Automobile Expenses
– Bank statements
– Deposit Book
– Cancelled cheques
– Cell phone bills
– Insurance invoice
– Invoices (Equipment, Furniture, Computer, Motor Vehicle, Truck, Etc.)
– Closing papers (Legal paper for purchase of Business)
– Closing papers (Legal paper for purchase of Building)
– Rent (lease) paper
– Rent Invoice or Receipt
– Fuel receipts
– Repair & Maintenance receipts
– Meals receipts
– Tolls & permits receipts

For more information please call your Accountant in Brampton at 905-794-8283.

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