Business year-end isn’t just when we file your taxes; it’s when we set the path for next year’s successes.
To help you prepare for year-end, we will send you a checklist as your year-end approaches. The checklist identifies all of the documents you will need to bring us so that we can prepare your financial statements and file your taxes efficiently and as quickly as possible. We find this reduces the risk of missing something important, and means that you never have to deal with the feeling that you’ve forgotten something.
When we are reviewing your year-end financial information, we try to identify tax savings for the current year, as well as the upcoming year. For example, we might identify that by changing your business’s tax plan or by changing the structure of your business, you’ll realize tax savings this year.
We also provide personal tax advisory services to individuals who we do business year-end work for. By doing both your personal and business taxes and accounting, we will have a better overall picture of your finances, and can better advise you on tax minimization strategies.
Blog posts about Business Year-End
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.
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,
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
Government introduces Canada Emergency Response Benefit to help workers and businesses
2020 - Ottawa, Ontario - Department of Finance Canada
The Government of Canada is taking strong, immediate and
effective action to protect Canadians and the economy from the impacts of the
global COVID-19 pandemic. No Canadian should have to choose between protecting
their health, putting food on the table, paying for their
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:
Relief for the Energy Sector
Immediate action will protect jobs and provide economic relief to the oil and gas industry
The Government is providing economic relief to Alberta’s energy industry to address challenges resulting from the COVID-19 pandemic and declining oil prices due to an international price war. The energy sector supports more than 500,000 jobs across
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
Year End Tax Tips
Review our year end tax tips to discover a number of perfectly valid actions you may still be able to take before the end of the year to cut your taxes and to optimize your wealth management planning.
As tax planning specialists, we can help you decide exactly what to do, when to do it
Registering For GST
Do you need to register for GST?
Some services are exempt from the GST/HST – that is, no GST/HST applies to them. This means that you do not charge the GST/HST on these services, and you are not entitled to claim input tax credits on property and services acquired to provide them. You cannot register for the GST/HST if
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
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.
Capital Dividend Account
The capital dividend account (CDA) is used to track the amounts that can be paid out to shareholders, tax free.
How is the capital dividend account balance calculated?
Capital gains and losses – The balance increases by 50% of any capital gains your company incurs, and decreases by 50% of any capital losses your company
Outstanding Shareholder Loan
It is very common for owner-managers to draw funds from their company during the year and find themselves with an outstanding shareholder loan at year end.
These balances are often cleared up by recording dividends or bonuses to the shareholders and the problem is solved. If the loan is not repaid during the fiscal
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
Wagepoint is an online payroll software that will meet all of your payroll needs.
T4 and T4A preparation
Statutory Holiday calculations
Record of employment (ROE) preparation
Online pay stubs
Integrates with QBO and TSheets
Wagepoint also integrates with Quickbooks Online (QBO) accounting software
Form T1135 Foreign Income
Form T1135 Foreign Income Verification Statement must be filed if you, your corporation, trust or partnership, owned or held foreign property with a cost amount of more than $100,000 at any time in the year even if some or all of the property was sold before the year of the year.
The form is
Personal Services Business (PSB)
In the past, it was OK and even advisable to conduct business through an incorporated company even if PSB rules applied.
With recent changes to the rules, though, this is no longer true. So what are these changes, and what do they mean to you?
Impact of late filing your corporate tax return
If you are late filing your corporate tax return by more than three years, any overpayment is considered statute barred under the Canadian Income Tax Act (Section 164(1)).
This means that the Canada Revenue Agency (CRA) will not issue the refund to the corporation. In addition, the corporation cannot apply for tax payer relief to
Applying for a Business Number
A Business Number is a nine-digit identifier provided by the Canada Revenue Agency (CRA) to each Canadian business.
This number is given to register tax accounts and to make communication with CRA easier. Each legal entity (sole proprietor, partnership, corporation or trust) requires one business number and each business number can be registered for
Would you like to have a KWB staff person work directly on your accounting system at a time that is convenient for you? Or to help you figure out why your accounts aren’t balancing or why your accounting software has crashed? KWB is here to help! Learn more about our remote accounting support.
CRA Tax Myths
Will CRA email me for information? Can I refuse to pay income taxes if I want to? Can I avoid paying GST? Do I have to pay taxes on lottery winnings? These myths are answered.
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
Borrowing Best Practices
You may not always understand what your banker is seeing or what they are asking for, but the good news is that both your banker and you want to see the business succeed. Here is more info on the 9 simple things that will help you become a more successful borrower.
Many companies may experience a Canada Revenue Agency (CRA) audit. Here’s what you need to know:
Types of Audits:
Not all CRA audits are the same! In some cases, they may only want to see records pertaining to one area or it could be a full audit. Here are a few details regarding the different
Quickbooks Online - Free For Clients of KWB
QuickBooks Online (QBO) is a cloud based version of the traditional QuickBooks desktop accounting software that offers some great features and accessibility not available from the desktop environment. Cloud basically means it resides on and is accessible through the internet.
We like it so much that effective July 1, 2017 we are offering it at
To make sure you are claiming all the tax deductions that you should be, read about the 7 most commonly overlooked tax deductions.
Statute Barred Period
In general, CRA can reassess tax returns for individuals, trusts and Canadian Controlled Private Corporations (CCPC’s) within 3 years from the original Notice of Assessment date. After that, the returns enter a statute barred period.
The typical statute barred period starts 3 years after the Notice of Assessment is issued
A Notice of Assessment is the
Small Business Deduction
The current Small Business Deduction in Canada allows corporations to pay a lower rate of tax on their first $500,000 of active business income. Active business income includes income earned from a company’s regular operations, but excludes other income such as rental or investment income.
Budget 2016 released by the federal government has introduced
How long do you have to file a T1 adjustment?
If you find yourself in a situation where you have filed your personal tax return and then realize that you need to make a change, there are some steps you need to follow.
First, you need to wait until the notice of assessment on your
CRA Online Mail
Tired of waiting for snail mail? The Canada Revenue Agency (CRA) now allows you to receive some of their correspondence electronically through their My Account service.
What correspondence does this apply to?
Notices of Assessment (issued after February 9, 2015)
Notices of Reassessment (issued after February 9, 2015)
Tax Free Savings Account letters (issued after
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.
CRA Requirements for Keeping Financial Information
You are required by law to keep records if one or more of the following situations apply:
You operate a business in Canada
You have to file an income tax return (i.e. corporate or personal)
You have to file a GST return
You filed for a GST rebate
You have a trust
Alberta Corporate Tax Rate Changes
In addition to personal income tax increases, the Alberta NDP government has also increased general corporate tax rates.
However, businesses that earn $500,000 or less of active business income will not be affected by the tax increases due to an offsetting increase to the Alberta small business deduction rate. Businesses that have more than
Alberta Personal Income Tax Changes
On June 30, 2015, the Alberta government passed Bill 2, An Act to Restore Fairness to Public Revenues.
The bill has created a progressive personal income tax rate structure for higher income earners. Effective for 2015 and subsequent tax years, four new tax brackets and rates will be introduced:
Taxable income of $125,000 to
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
CRA's Cash Receipts Window
Canada Revenue Agency (CRA) has announced that they are closing their cash receipts window effective September 30, 2013. Find out how this might affect you.
2013 Federal Budget
On March 21, 2013 the federal budget was released. Read about the 4 items in the budget that we think are most likely to affect you.
Is it too late to reduce your 2012 taxes and optimize your investments?
Is it too late to reduce your 2012 taxes and optimize your investments? Perhaps not—if you contact KWB right away!
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.