Tax Tips by Accountant in GTA

  • The payment of accumulated sick leave credits may qualify as a retiring allowance if such payment is made in recognition of long service or in respect of the loss of an office or employment.
  • The CRA takes the position that private company employees who retire but retain a seat on the board of directors at nominal compensation may still collect a retiring allowance. However, employees of a public company who retire but retain their seat are not considered to have terminated their employment and are thus not eligible for a retiring allowance.
    Tax Accountant GTA
  • Legal fees incurred in a termination case don’t necessarily have to be paid to a lawyer in order to be deductible. Fees paid to another professional, such as a labour relations consultant retained to negotiate a severance package, may also be deductible by Tax Accountant GTA.
  • If your expenses exceed commission-related income, there may be alternative methods of making claims available to you.  Consult your tax accountant in gta for advice on how to maximize tax savings.
  • If you are a commissioned employee, consider leasing  rather than purchasing capital equipment (such as a computer) where CCA is not allowed tax accountant gta.
  • Commissioned life insurance salespersons are allowed to deduct commissions earned with respect to the purchase of their own policies.
  • Commissioned sales employees who work in their homes should ensure that a separate business telephone line exists in order for regular phone expenses, other than business long-distance charges, to be deductible by tax accountant in gta.
  • CRA Guide RC4110, entitled Employee or Self-Employed?, outlines detailed criteria for determining whether you are employed or self-employed. The major themes of this booklet include an analysis of who has control over the working environment; who owns the tools necessary to do the job; as well as who bears the brunt of responsibility for a potential risk/reward scenario when it comes to a financial profit or loss, Accountant in GTA.
  • Self-employment might also exist in circumstances  where a worker is hired through an agency for various temporary assignments.
  • Consider employing your spouse or common-law partner and/or children to take advantage of income splitting opportunities. Any salary paid must be reasonable for the work performed and T4 slip must be issued by Accountant GTA.
  • You may also want to consider paying out active corporate income that would otherwise attract high corporate rates, e.g., profits in excess of $200,000, as bonuses. Note, however, that accrued bonuses must be paid within 180 days even if you have to lend the after-tax proceeds back to the corporation according to Tax Accountant GTA.
  • When determining the optimal mix of salary and dividends, ensure that personal tax credits are fully utilized. Maintain desired levels of salary for purposes of CPP and RRSP contributions.
  • Because salaries paid by management companies are effectively subject to GST, exempt professionals should consider directly employing administrative staff in GTA.
  • For more information please see your Tax Accountant in GTA or call us at 905-794-8283.

Free business