Are you self-employed? Some of your important tax questions answered! Becoming a self-employed individual can be empowering but also stressful. There maybe many of questions swirling around in your head, but not to worry – we’re here to answer them! What is considered self-employed income? Well, self-employed income refers to income obtained through your own…
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Should you incorporate your business? Is your small business growing rapidly and you’re starting to wonder about incorporation? No problem – here are some advantages and disadvantages of incorporation. Advantages: Limited Liability As a sole proprietorship, you as the business owner assume the liability for the company. Therefore, your personal assets such as your own home…
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Department of Finance Proposed Changes for Canadian Entrepreneurs On July 18, 2017, the Honourable Bill Morneau released proposed changes to the following three areas of tax planning using private corporations: Income Sprinkling The proposed changes significantly expand the current rules targeting income splitting among family members. Holding Passive Investments Inside a Private Corporation The Government…
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On March 22, 2017, the federal Liberal government released their 2nd budget. For those of you who are not inclined to read the detail and commentary below, an executive summary follows. EXECUTIVE SUMMARY Capital gains inclusion rates – The status quo of 50% of capital gains inclusion remains… no change. Stock option deduction – No…
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What happens when the shareholders no longer need a corporation? A corporation is legally required to file a final T2 income tax returns along with filing annual reports with the registrar of companies as long as it is in existence, regardless of whether it is active or not. In order to stop filing tax returns,…
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Dividend or Salary As the owner of a Canadian small business corporation, you generally have two methods when it comes to paying yourself: Dividend – an investment return paid out of the corporation’s retained earnings Salary – an employment return paid out of the corporation’s net income The Canadian personal and corporate income tax structure is designed to…
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Many small-business owners in Alberta are bracing for the dramatic hikes to the province’s minimum wage, saying they will squeeze their operations when they can least afford it. While other provinces are opting for incremental increases to their minimum wages this year, Alberta boosted the minimum wage to $12.20 from $11.20 on Saturday. That will…
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If you live in Canada, you are likely aware of the recession conditions our economy is currently facing. These are uncertain times, and you might find yourself in the devastating and confusing position of unemployment. So, what are your options? Employment Insurance (EI) is designed to provide temporary financial assistance to Canadians who have lost…
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Accounting is a world of acronyms. CA, CGA, CMA, CPA, what do they all mean? Jibe Accounting is here to help you understand ASAP, OK? As of January of 2013, Chartered Accountants (“CAs”) adopted the Chartered Professional Accountant (“CPA”) designation. The three accounting bodies in Canada, CA, Certified Management Accountants (“CMAs”), and Certified General Accountants…
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As most of you know, GST stands for “government sales tax.” But who has to pay it, and what kinds of goods and services does it apply to? Jibe Accounting has your answers. If you are self-employed, the Canada Revenue Agency assumes that you own a business. If you own a business by yourself, you…
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