Resources

Shareholders can receive wages or dividends. We can use a combination of the two to minimize company and personal income taxes payable.

Subcontractors are self-employed and work on specific projects while Employees work for you regularly as part of your team. Knowing the difference can help you hire smart and stay compliant in the long run.

Each option has pros and cons. Subcontractors offer flexibility and lower costs but may be less available. Employees give you consistency and control but it increases your level of responsibility.

Legal rules differ, too. Employees require payroll, tax deductions, and benefits. Subcontractors are responsible their own. Misclassifying workers could lead to CRA audits and potential fees and penalties.

Using both can help your business grow, if you need help to choose what fits your needs give us a call and we can help.

If you use your vehicle for business, for example to carry tools, go to different jobsites or visit clients etc, then you can write a portion of the cost of using your vehicle. Vehicle cost to and from your office is not deductible. Detailed logbook must be maintained to verify the business use of your vehicle

For most business. if your sales exceed $30,000 in any 4 consecutive calendar quarters then you must register for GST. GST must be collected on all sales and the GST (ITC) paid on purchases can be removed.

If your business is incorporated, you need to file a T2 tax return within six months after your fiscal year ends. For example, if your year ends on December 31, your return is due by June 30.

Despite this, if you are a Canadian-controlled private corporation (CCPC), any taxes you owe must be paid within three months after your year-end, even if your T2 is filed later. If you’re not a CCPC, you only have two months to pay. If you’re unsure of when to pay your business taxes, contact us. 

Medical expenses are deductible in any 12 month period that ends in the tax year except in the year of death when medical expense can be claimed for the 24 months ending in a month the tax year

Your employer must provide you with a completed T2200 Statement of Employment expense indicating that you are required to use your cell phone for work.

If you have lived in your home from the time that you purchased it and you have not designated any other property as your principal resident and you have not used a portion of your home as rental property then there will likely not be any capital gains tax. We still have to report the disposition of you house.