The deadline to file tax returns is quickly approaching, resulting in various degrees anxiety for some taxpayers and accountants.  The good news is that the stress can be managed fairly easily with some simple organization techniques.  The most effective starting point is to evaluate your tax situation and prepare a checklist of the documentation that you will need with respect to your specific tax situation. A checklist can help to ensure that important items are not overlooked in the rush to put everything together (and, of course, its always satisfying to cross something off the l ..read more

As of January 1, 2024 Revenue Canada will require all business (except for a handful of exceptions such as some financial institutions and charities) to file their returns electronically. This means that you can no longer use the paper form. The good news is that it is quite easy to file the return online and, in most cases, probably saves you time since you don’t have to put it in an envelope, affix a stamp and take a walk to a mailbox. There are essentially two ways to file your GST/HST online: CRA My Business Account Online Business Banking In this post, I will be reviewing how to do ..read more

For all Canadian businesses that have employees on their payroll, the deadline to file your T4s is February 28th (unless it is a leap year and then it is February 29th),   The good news is that it has become much easier to prepare and submit the T4s particularly if you are submitting them electronically..  The Canada Revenue Agency (CRA) encourages businesses to file the T4s electronically and it should be noted that e-filing is mandatory for employers with more than 50 employees.   Digital Download Print version Save 80% on QuickBooks Online for the first 6 months Related:  ..read more

The first important year end deadline for corporations, with employees, is the end of February. Salary declarations including T4 and RL1 (in Quebec) slips and summaries have to be filed with CRA and RQ. While there are numerous payroll software that handle the filing of the T4 and RL1 slips, the RL1 summary is usually left to the employer (and/or their accountants) to file. While a T4 summary is not required if slips are filed electronically, an RL1 summary has to be filed regardless of the method of filing the RL1 slips i.e. manually or electronically. Additionally, employers in Quebec also h ..read more

In QuickBooks Online (QBO), the terms "Zero Rated," "Out of Scope," and "Exempt" refer to different classifications of transactions for GST/HST and QST (in Quebec).  Each one of these transactions results in $0 tax being added to the transaction, and if you use them interchangeably it is probably not a huge problem.  That being said, there are a couple of reasons you might want to ensure that you get this right: ensure accuracy in their books avoid the small possibility that an a government (Revenue Canada) auditor might nitpick at it or make your sales reports more accurate ..read more

As we approach the new year, it will be time soon to start working on everyone’s favourite activity i.e. getting your tax stuff in order :) . Below are the deadlines that all small businesses need to know for 2024. Download our free Canada unincorporated business tax deadline calendar for 2024 (both Federal and Quebec). Learn more Available at Amazon Interest Rates for Late Tax Filings Due to the increase in interest rates overall, the amount of interest charged on late or overdue balances for both CRA and Revenue Quebec are significantly higher in 2024 (10% compared with 5% in 2022 on overd ..read more

In a recent study by H&R Block, nearly 28% of Canadians reported taking on a side hustle in the “gig economy” to boost their income. This is a significant increase from 2022 in which the analogous percentage was 13%. This is likely a result of inflationary pressures and the expansion of opportunities available for flexible work. What is the Gig Economy? The gig economy, popularized by Uber, refers to work that is flexible and usually incorporates digital apps or platforms.  Examples of the gig economy include: Ridesharing platforms e.g. Uber or Lyft Freelance work platforms e.g. U ..read more

Investment in capital items such as computers, furniture, equipment and cars can cause confusion for small business owners.  Since these are purchases that affect the cash flow of the business, it seems that they should be accounted for as expenses similar to office supplies or rent.  There are however special rules for any acquisitions that qualify as “fixed assets”. A fixed asset, simply speaking, is an acquisition that provides a long term economic benefit to the business. In other words, any business purchases that has a useful life that extends beyond one year, will usually qual ..read more

The self-employed lifestyle holds great promise when you first start being self employed, however you quickly find yourself doing things that you would never have dreamed of.  You are expected to take on role of salesperson, market researcher, accountant, lawyer and social media expert, while not getting paid for any of it.  Your available funds do not allow for outsourcing and at times you are not even aware of what you don’t know.  Luckily the internet provides a wealth of tips and tricks to make these tasks easier, and you might actually find that you enjoy taking on some of ..read more

When starting your new Canadian small business or launching into self employment, it is essential to determine whether you are required to register for GST/HST (and QST if you have a started a business in Quebec). The simple answer is that if you anticipate that your annual gross revenues (total sales) are going to exceed $30,000 and your products or services do not qualify as Exempt or Zero rated (explained below) , then you are required to register for GST/HST and collect sales taxes from your Canadian customers and clients. The $30,000 limit applies to the last 4 quarters of revenues. If yo ..read more