I hope everyone is enjoying the excellent summer weather we are having.
We just wanted to let everyone know our office hours for the months of July and August.
Monday to Thursday 0830 to 430pm
Fridays 0830 to 1pm Have a great summer!
Greg Libbrecht, President Five Star Accounting & Platinum Books
In order to celebrate our country’s birthday - our office will be closed for the July Long Weekend returning to work Tuesday July 3. Thank you for your business and placing your trust in us, and enjoy the long weekend
– Greg Libbrecht, President Platinum Books & Five Star Accounting
Midnight June 15 is the tax filing deadline for unincorporated business owners and their spouses, and the official end of tax season. Failing to file and pay the taxes due by June 15 results late filing penalties and interest. File by midnight June 15 and avoid the 5% late filing penalty plus 1% per month on the outstanding balance for up to 12 months. If you are delinquent on paying for the second time within three years, that penalty goes up to 10% of the outstanding amount plus 2% per month for up to 20 months.
The proposed tax changes are limiting the opportunities to income split. Spousal couples that have one person making significantly less money can still take advantage of spousal Loans. As long as the loan is setup properly tax advantages to the overall tax bill can be significant. Investment income from the money will be taxed at the lower tax rate as long as the following conditions are adhered to.
War Veteran. Hero. Business Owner. Family Man. Inspiration. These are all words that can be used to describe one man - Jayson Nickol. After being injured in Afghanistan in 2008, this Winnipegger returned home and faced many challenges, least of all recovering from the bullet which had shattered his femur. His post-traumatic disorder was a battle he fought at home using golf as well as the support of family, friends and loved ones.
There are 3 proposed changes that could effectively kill the small business as we know it.
1. Income “Sprinkling” - Many small business owners employ and pay family members for working in the business. Although this splitting of income has always been on the radar of CRA, the government now proposes to take it a step further. IF the changes are approved, CRA will be able to apply a ‘reasonableness test’ to determine if in fact, the family member is actually an employee or the business owner is merely attempting to save on taxes by incurring the payroll costs within the business.
Debt Management for Students
Unless their parents put in place planning for post-secondary education students will owe close to $30,000 upon graduation. It is estimated 74% of students will owe this amount when they graduate and most will need even further training to be successful in their chosen field. In addition the cost of tuition for a number of specialized professions has dis-proportionately risen in recent years – putting these students at risk for even higher debt loads upon graduation.
In Alberta, Saskatchewan, Manitoba, Ontario and Newfoundland and Labrador the increases occur October 1. The new rates are:
•Manitoba: $11.15/hr (general), $13.40 (security guards)
•Ontario: $11.60/hr (general), $10.90 (Students), $10.10 (Liquor Servers), $12.80 (homeworkers)
•Newfoundland and Labrador: $11.00/hr
Check your with payroll service provider to make sure you are in compliance before.
Employers are responsible for withholding and remitting source deductions on payments to their employees. This principle becomes tricky to apply when the employer is a complex corporate structure made up of multiple legal entities. Questions about which entity is liable to deduct and remit source deductions to the CRA may occur when labour is shared among the group and the employer of record struggles financially and the others are doing well.
Platinum Books is proud to be a supporter of Habitat for Humanity. This is a great organization that provides a hand up to families that have earned the privilege. Each year since its inception - 11 years ago - Greg Libbrecht has been part of Ride Around the Lake. Click Here http://www.habitat.mb.ca/events-ratl/donate-now.cfm?kwofrid=HYLUWH7 to help us help Habitat - Thank you for your support.