I Am Running a One-Person Operation.
I. . .
Business owners running single-person operations face unique challenges. As the only person solely responsible for your business, you undoubtedly have questions about pay structure, company structure, and how that will change should you choose to hire employees. At KWB, we can answer questions every step of the way, from starting up your one-person operation to transitioning into a multi-employee business.
We help you to improve cash flow by taking advantage of tax savings opportunities. There are a number of tax breaks available for one-person businesses, and by helping you to identify them, we can help you to improve your profit.
We also provide your small business with business advisory services. We establish a relationship with you so that you can think of us as a partner, allowing you to comfortably bounce ideas off of us. Our relationship with you isn’t just a one-way handing-over of information, but a two-way dialogue that allows you to grow.
If you’re an existing client, please give us a call and set up a meeting.
If you’re a new client, give us a call or send us an email – we’ll set up a no-commitment consultation for approximately a half-hour. We’ll talk about your business, your personal and professional goals, and answer all of your questions about us as well. If there’s a good fit, we’ll provide you with actionable advice and get you started down the path towards your goals.
Blog posts about One-Person Operation
Save Money with a Health Services Plan
Save Money with a Health Plan
How can you save $100’s and maybe $1,000’s in taxes in one simple step? Are you an employee of your own company and do you have significant medical expenses each year of $2,000 or more not covered by a health plan? Then creating a “Private Health Services Plan” (PHSP) as soon as possible could save you big dollars.
CPP Death Benefit and Survivor Payment
CPP death benefit
The CPP death benefit is a one-time, lump-sum payment to the estate of the deceased contributor.
The CPP death benefit can be paid to:
The Estate of the deceased person
The person who paid the funeral expenses
A surviving spouse or common law partner
A next of kin.
The Executor is the
New Protocol for Applying for the Canada Emergency Response Benefit (CERB) – 3 April 2020
Due to the
volume of Canadians applying for the Canada Emergency Response Benefit (CERB),
the Canadian Revenue Agency has set new protocol for applying:
If you were born in January, February or March, you may apply on MondaysIf you were born in April, May or June, you may apply on Tuesdays.If you were
KWB Summary of Relief Programs - Federal and Provincial - 3 April 2020
To our friends, clients, and business partners,
We hope this newsletter finds you well and healthy. The volume of information we’ve received from provincial and federal governments over the last few weeks has been significant and a bit of a moving target, so we’ve put together a summary of all the relief programs that
The Canada Emergency Wage Subsidy - What It Means for Canadian Businesses – 2 April, 2020
help businesses keep and return workers to their payroll through the challenges
posed by the COVID-19 pandemic, the Prime Minister, Justin Trudeau, proposed
the new Canada Emergency Wage Subsidy. This would provide a 75-per-cent wage
subsidy to eligible employers for up to 12 weeks, retroactive to March 15,
wage subsidy aims
Update - The Canada 75 % Wage Subsidy
Minister, Bill Morneau, announced today (April 1st, 2020) that the
75 % wage subsidy would be available within 3-6 weeks time.
What we know so far:
The subsidy is available to all businesses, charities and non-profit organizations as long as they can prove that they have lost 30 % of their revenue
What is the Work-Sharing Program?
Work-Sharing (WS) is a program that helps employers and employees avoid
layoffs when there is a temporary decrease in business activity beyond the
control of the employer. The program provides EI benefits to eligible employees
who agree to reduce their normal working hours and share the available work
while their employer recovers. Work-Sharing is
Essential Services - Is your Business on the List?
businesses and services on the essential services list can continue to provide
services at locations accessible to the public and must have proper risk
mitigation measures in place, such as sanitation stations and appropriate
distancing between customers.
of this list is to provide general guidance to business owners and
What is the Canada Emergency Business Account?
Canada Emergency Business Account will provide interest-free loans of up to
$40,000 to small businesses and not-for-profits, to help cover their operating
costs during a period where their revenues have been temporarily reduced.
these organizations will need to demonstrate they paid between $50,000 to $1
million in total
Explaining the Business Credit Availability Program (BCAP)
Description of the Business Credit Availability Program (BCAP):
On March 13,
2020, the Government announced the establishment of a Business Credit
Availability Program (BCAP) to help Canadian businesses obtain financing during
the current period of significant uncertainty. The BCAP will support
access to financing for Canadian businesses in all sectors and regions
New Information on Wage Subsidy Program - 30 March 2020
Prime Minister Justin Trudeau announced today businesses and non-profit organizations seeing a drop of at least 30 per cent in revenue due to COVID-19 will qualify for the government's 75 per cent wage subsidy program.
The number of people a business employs will not
determine its eligibility. Charities and companies big and small will
Breaking News for Small - Medium Size Businesses - 27 March 2020
Ottawa hikes wage subsidy to 75% for small and medium-sized businesses
The federal government is hiking its wage subsidy for small and medium-sized businesses from 10 per cent to 75 per cent, a
move that business leaders have called for amid the coronavirus outbreak.
Prime Minister Justin Trudeau announced the payroll subsidy,
Document Deliveries and Meetings through COVID-19
Dear valued KWB clients and business partners,
Our office remains open and functional during this time, however, we no longer have reception coverage until further notice. Please take note of the following procedures that have been implemented:
1. Deliveries to our office
You may continue to deliver or drop-off your documents at our
New Information from the Alberta Government – 25 March 2020
In addition, it is now mandatory for travellers returning
from outside of Canada to self-isolate. This legal requirement also applies to
close contacts of confirmed COVID-19 cases, as well as to any individual with
symptoms, such as a fever, cough, sore throat or runny nose.
“We must do everything we can to protect Albertans
Support for entrepreneurs impacted by the coronavirus COVID-19
As announced by the Minister of Finance, BDC puts in place additional measures to provide relief for Canadian
March 18, 2020, new relief measures for qualified businesses include:
Working capital loans of up to
$2 million with flexible repayment terms such as principal postponements
for qualifying businesses;Flexible repayment terms, such
Support for Employers – New Supports Announced 23/03/2020
Corporate income tax changes
Corporate income tax balances and
instalment payments will be deferred from March 19 until August 31, 2020 to
increase employers’ access to cash so they can pay employees, address debts and
Education property tax deferral
property tax rates will be frozen at last year’s level – reversing
Best Practices for Submitting Documents Electronically
We are encouraging you to send us your personal tax
information or corporate records electronically. This guide will assist you through the
process while ensuring your data is secure and well managed.
File Types: We can accept pretty much any file types
(PDF, jpeg, bmp, tiff, png, etc.)
Frequently Asked Questions – Temporary Wage Subsidy for Employers
1. What is the Temporary Wage Subsidy
Temporary Wage Subsidy for Employers is a three-month measure that will allow
eligible employers to reduce the amount of payroll deductions required to be
remitted to the Canada Revenue Agency (CRA).
2. Which employers are eligible?
You are an
eligible employer if you:
Who qualifies for EI?
Whether you qualify for EI will still depend on your specific situation, such as regional rate of employment, and the number of hours worked in the last 52 weeks.
The government recommends people apply as soon as possible to find out if they qualify; waiting more than four weeks after your last day
Support for Albertans – COVID-19
government will provide immediate financial relief to Alberta’s families and
should be focused on their health and not worry about whether they can pay
their bills so we have put a number of options in place for those struggling
Emergency isolation support
This will be
a temporary program
Support for Employers - Alberta - COVID-19
The Alberta government will provide immediate funding and supportive measures to support local businesses, employers and employees.
Support for employers
Corporate income tax changes
Corporate income tax balances and
instalment payments will be deferred from March 19 until August 31, 2020 to
increase employers’ access to cash so they can pay employees, address debts
Tax News and Changes – COVID-19
The Prime Minister and the Minister of Finance announced on
March 18th an economic relief package to begin addressing the
economic impacts of the COVID-19 pandemic. Part of the economic relief package includes
tax relief for individuals and businesses.
Filing Deadline Extensions
The deadline for filing personal income tax returns will be
Resources for Canadian Businesses – COVID-19
Small and medium-sized businesses are the backbone of the
Canadian economy. During this extraordinary time, the Government of Canada is
taking strong action to help Canadian businesses as COVID-19 is affecting them,
their employees and their families.
The Government and public health officials are urging all
stay home unless it is absolutely
To our valued clients and business partners – a KWB announcement
KWB Chartered Professional Accountants has a proactive plan for
continued operation in this new environment. You and our team are our
first priority. We want to inform you of what changes we have made, so we
can continue to complete the work you need us to do, while protecting both you
The best times to post on Social Media
This blog informs you of the best times to post on social media in 2020.
What is the best time to post on Facebook in 2020?
The best time to post on Facebook is between 11 a.m. and 4 p.m. The best day to post on Facebook is Wednesday. While
5 Things to Consider When Filing Your Tax Return
list of some things to avoid when filing your tax return.
Follow these tips; they could save you time and money!
Filing an income tax and benefit return even if you have no income
If you have no income to report, you should still file a return. You may be eligible for
7 Perks of Having a Data Manager (Bookkeeper )
A good data manager should ensure that:
You are compliant with the CRA at all times. You are focused on your business, not the data.You are capturing and recording all expenses for tax deductions.You have timely and accurate information available to make better decisions.You have efficient processes for capturing data
Travel expenses include food, beverage, lodging and transportation (such as airplane, train, bus, etc.) expenses but not motor vehicle expenses.
You can deduct travelling expenses on your personal tax return as long as you meet all of the following conditions:
You were normally required to work away from your employer's place of
If you would like to spend less time organizing your records and more time growing your business, you should automate your document retention with Receipt Bank.
Receipt Bank is a website application that extracts key information from your invoices and receipts and publishes it directly into Quickbooks Online (QBO).
Integrates with QBO
Some of the
EI for the self-employed
An advantage to being self-employed is that you don’t pay into Employment Insurance (EI) like employees do.
However, a program was introduced in 2010 which allows self-employed individuals to opt in to pay Employment Insurance (EI) premiums. Now that this has been in effect for a number of years, let’s revisit some of the key
New Business Guide for setting up your business
If you are starting a new business in Canada or are operating one already, then this article is for you.
Types of business structures
The type of structure you choose has a significant effect on the way you report your income, the type of returns you file each year, and many other matters.
Living Out Allowance
In certain situations, a company can pay and deduct a living out allowance and the employee does not have to report the allowance in their income.
In order for this to apply, the allowance needs to be reasonable. Additional criteria must be met as stated below for employees at a special work site and
Direct Beneficiary Designation - RRSP or RRIF
If you are considering a direct beneficiary designation for either a Registered Retirement Savings Plan (RRSP) or a Registered Retirement Income Fund (RRIF), you should be aware of some negative consequences that can occur.
A direct beneficiary designation can result in unintended tax consequences to the estate, the inequitable treatment of heirs or the distribution
Work in Progress
If you have a professional corporation then the new work in progress tax rules will likely affect you!
Professional corporations are typically set up and used by accountants, lawyers, dentists, doctors, veterinarians and chiropractors. Instead of running their business as a sole proprietor, everything happens under an incorporated entity.
Work in progress (WIP) includes any
The Secret to Fitting a Healthy Lifestyle into your Busy World-Part 2
Part 2 of an article on Healthy Lifestyles.
See Part 1 posted on October 16th.
Strategic Step #2: Automate & Re-Engineer Your Environment
We are creatures of habit. Did you know that on a typical day you make about 300 decisions about nutrition? Most of them are done unconsciously and can often lead to poor
The Secret to Fitting a Healthy Lifestyle into your Busy World-Part 1
Entrepreneurs, business owners, and professionals often lead very busy lives. Being one myself I can relate to wearing many different hats, starting early, ending late, and seeing the impact on my healthy lifestyle.
So many of us get into an unconscious pattern that just becomes our normal way of being. Unfortunately, over time, our health
Tax Filing Deadline
What is your tax filing deadline? How much time do you have to file and what are the costs of not filing or of filing late?
Personal Tax Filing Deadline
Personal taxes are due on April 30 unless that date falls on a Saturday, Sunday or a holiday in which case the return is due on
2018 Tax Rates & Limits
Each year various tax rates, contribution limits, benefit amounts and deduction rates change. The following is a quick reference guide for 2018.
Personal income tax rates and brackets:
Taxable income Rate
$0 to $46,605 15%
$46,606 to $93,208 20.5%
$93,209 to $144,489 26%
$144,490 to $205
Proposals from the Department of Finance on July 18, 2017 included changes to the taxation of split income.
The most common form of split income is income from a dividend from a related entity that is not excluded from being categorized as such.
Prior to 2018, shareholders of privately held companies over the age of
Leasehold Improvements To Your Home Office
Have you made some renovations or leasehold improvements to your home office? You should be claiming any “repairs” in the year that they occur, but you have some options when it comes to claiming the amortization from leasehold improvements to your home office.
However be aware that this option may mean losing your homes
Depending on the amount of your payroll remittance you may have some options as to when you are required to remit it to CRA.
Regular Payroll Remittance
You are a regular remitter if you are a new employer or your average monthly withholding amount (AMWA) two years ago was less than $25,000. In
Do you own a business - either incorporated or unincorporated - and have a spouse or one or more adult children with an income lower than your own? If so, you may be able to shift your income to these other family members, effectively moving the income from a high tax rate to a low tax rate and decreasing the overall tax burden on your family. This is called income splitting.
If you are moving and are the owner of your own business you should consider deducting the expenses in your company rather than on your personal tax return.
If you do not have that option, then the tax rules provide that if you have moved to be at least 40 km closer to your place
Taxable Benefits For The Personal Use of Company Aircraft
A corporate aircraft that is owned or leased primarily for business purposes, but is used for personal purposes (i.e. flight to transport employees or shareholders to a vacation destination) will be considered a taxable benefit to that employee or shareholder.
The value of the benefit is the cost of a regular first class airfare
Deciding when it’s time to start taking your CPP retirement benefits
You can start receiving CPP pension benefits when you reach age 65 (the month after your 65th birthday) which will entitle you to a full CPP benefit depending on how much and how long you have contributed to the CPP.
However, you have the following choices:
Take a reduced CPP retirement pension as early as
Online tools from the CRA and Service Canada
Here are some great tools on the CRA website to help in day to day activities that I personally use.
1) Payroll Deduction Online Calculator
Use the Payroll Deductions Online Calculator (PDOC) to calculate federal, provincial (except for Quebec), and territorial payroll deductions. It will confirm or allow you to calculate the deductions you include
Corporate expenses - What can you deduct?
Often deductible business expenses are overlooked or missed as business owners are unsure whether they are deductible.
A business expense is any cost incurred by the company to generate income. These expenses must be supported by physical documents such as invoices, purchase contracts, sales receipt, etc. If cash is used to purchase items, it is
Cost of Being Found to be a Personal Services Business (PSB)
We often hear about individuals who decide to incorporate while working as an employee for a business. But is it really beneficial to do so?
Let’s look at an example. Joe works as an employee and earns employment income (a T4 slip) in Alberta. On July 1, he incorporates. Although he has incorporated, he continues
Child Related Benefits, Expenses and Deductions
There’s great news for 2015 for Canadians with children. Stephen Harper has announced a “child care benefit boost” – which includes an increase to, or return of, the monthly Universal Child Care Benefit cheques and an increase to the amount taxpayers can deduct for child care expenses and the child fitness credit.
Fraud from mobile banking deposits
Technology is constantly evolving and many commercial banks are using the latest technology advances. Some of these include mobile banking, electronic payments and mobile cheque deposits or Mobile Remote Deposit Capture (MRDC).
We have all seen the commercials showing us how easy it is to deposit a cheque by taking a picture of it with
The "Family Tax Cut" credit
Prime Minister Stephen Harper and Finance Minister Joe Oliver recently announced a “Family Tax Cut” credit which allows certain Canadian families to reduce their overall federal income tax. This relief will be available starting in 2014.
The new measure would allow a higher income spouse to shift a portion of their income to a lower
Online Backups - Keeping it simple
Do you know someone who has lost critical and precious information that was stored on their computer?
Are there things on your computer that you don’t want to lose such as financial or business records or personal information like family photos? We live in a digital world and we don’t have hard copies of anything
The Value of a Unanimous Shareholders Agreement (USA)
The financial wealth of many individuals is represented by the shares of a privately-held corporation, and, as such, a shareholder agreement is an invaluable legal instrument when the corporation is being continued by other shareholders or family.