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Easy, breezy, beautiful CRA online payment option

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“How do I pay the CRA online?”

Even the Canada Revenue Agency (CRA) is in with the online!

Whether you have 2016 taxes owing or  you are a business owner who needs to settle a debt, handle it like a boss and pay the CRA to avoid late fees and any legal trouble.

Here are some ways you can pay the CRA, whether you are an individual or a business:

Online (Recommended)

The CRA prefers to receive electronic payments. It’s fast and easy! You can do it two ways:

  • Make a payment using your financial institution’s online banking services:

    • Sign in to your financial institution’s online banking service (RBC Royal BankTD Canada TrustVancity, etc). Bank with another financial institution? See the complete list of banks that can be used on the My Payment service here.
    • Under “Add a payee,” look for an option such as: CRA (revenue)-current year-tax return. CRA (revenue)-tax amount owing. CRA (revenue)-tax installment.
    • See other available options under “Add a payee” that are not listed above here.
    • Business: Specify payroll, GST, Corporate Tax
    • Account number for personal: SIN number
    • Account number for business: Business number
  • Pay via CRA’s My Payment service:

    •  The amount that you can pay will be restricted by your daily banking limit for online transactions
    • Click on “Start my Payment” here to make an electronic payment.

Offline payment methods:

  • In-person (at the bank): You cannot walk into the bank to pay without the remittance voucher. The CRA does not mail them our anymore to encourage people to take advantage of their speedy, secure online payment option.
    • We can provide all our existing clients with a remittance voucher  for their personal taxes which they need to take to their financial institution to pay.
  • Photocopy an old one that you have, or  call the CRA to request it mailed to you. The process takes more than 10 business days, and that might cause you incur late penalties.
  • Mail a personal cheque: In the memo, indicate account number (SIN for personal or business number for self-employed).  Attach a letter to let CRA know what you are paying.

For information about your account balance and payments, including installments, see My Business Account.

When completing your return, you may calculate a balance owing on line 485Your balance is due no later than April 30, 2017. When a due date falls on a Saturday, a Sunday, or a holiday recognized by the CRA, your payment will be considered on time if the CRA receives it or it is postmarked on the next business day.

Generally, if this amount is $2 or less for 2016, you do not have to make a payment.

If you owe tax for 2016, and you file your 2016 return after the filing due date, the CRA will charge a late-filing penalty.

They start charging compound daily interest on any outstanding balance for 2016 starting May 1, 2017, until you pay it in full.

If you can’t pay the full amount you owe, take action right away and call the CRA arrange a payment plan.

For a full list of payment options, go here.

Get in touch with us if you have any concerns here.

Incorporation Series: How do I pay myself if I’m incorporated?

incorporating small business, incorporation, Vancouver Bookkeeper(s), Tax Return Service Vancouver, Small Business Bookkeepers in Vancouver, Quickbooks, CRA

Balling! When your wallet fat from all that cheddar…..

 

You got 99 problems and your incorporated small business ain’t one? Great. Now it is time to pay yourself. Because you can.  Unlike sole proprietors, owners of a corporation no longer have to claim all of the income from the business as personal income.

“How do I pay myself if I’m incorporated”

You can pay yourself in a variety of ways.

1. Salary

You can add yourself to the company payroll and receive a T4.

This is a more expensive option as the company will have to pay all required payroll taxes on your behalf. Owners are exempt from EI but must pay CPP like other employees.

However, choosing this option will allow you to accumulate more room in your RRSP’s which you can utilize to save on personal taxes once you are making the big bucks.

Additionally if you are the lower income earner and need to deduct child care expenses from your taxable income you will need to be pay yourself with a salary.

2. Dividends

You can declare the money you have taken from the company as a dividend.

To do this you will need to get your bookkeeper or accountant to figure out how much money you took from the business throughout the financial  year and issue you with a T5 from the corporation.

Your personal tax rate will be lower than if you take a salary.

Important Note

As tempting as it may be to pay  yourself as a contractor WE DO NOT RECOMMEND THIS OPTION.

Anytime the CRA feels they are missing out on receiving taxes they feel they are entitled to ( which in this case would be payroll taxes)  they will, put quite simply, come after you!

For more information about the penalties for incorrect employee classification check out our blog post Employee VS Contractor – CRA Penalties for incorrect worker classification

In the end we recommend that you talk to your bookkeeper or accountant before you decide how you are going to pay yourself so that you can choose an option that is the most tax effective based on your income requirements.

If you are considering becoming incorporated and would like to discuss your options face-to-face with Teya our business consultant and tax expert you can make an appointment by calling us directly on  604-739-9536  or by requesting an appointment through our contact us page.

Job Alert: Looking for a fabulous bookkeeper!

career search, job search, bookkeeping, quickbooks, small business, income tax, vancouver bookkeeping, vancouver careers, hiring Vancouver

Riding on the back of the shear excitement of another successful tax season, we knocked down a chunk of the back wall and increased our office space by an entire room. The Lady in Charge Teya finally gets the much needed privacy of her own office, and we get more legroom.

Yes, more room for awesome!

So, what does that mean for you?

We are looking for a fabulous part-time bookkeeper to join our growing  team of six, and take over the lonely, soft, leathery chair with your name on it.

Our hiring process is simple. We don’t bother with resumes, and wasting paper.


Do this instead:

  1. Click the pink button below
  2. Follow the instructions carefully

Reply here by answering the following questions:

  • Where do you see yourself in 5 years?
  • If you could be an animal what would you be and why?
  • How many years experience do you have working with Quickbooks?
  • Why do you want to work at Homeroom?

Homeroom Small Business Solutions is a growing, fast-paced tax preparation and bookkeeping company based in Vancouver. We pride ourselves on providing quality customer service, accurate and honest bookkeeping and great employee benefits.

We love what we do and want to find additional team members who are passionate about providing great customer service, set and achieve high standards of work, pay close attention to detail and who are loyal, motivated and passionate about life and business.

In return we will offer you a stable, flexible, supportive workplace with opportunities for growth.

We currently have a part-time position available, with a potential for full-time, for a qualified bookkeeper starting mid May.

Salary + Benefits will depend on experience.

We also pay commission for any clients you bring to the company.

Must have:

  • Min 1 years experience using Quickbooks Desktop
  • Strong understanding of GST and PST
  • Strong understanding and ability to troubleshoot bank reconciliations
  • Patience to train and answer questions from junior bookkeepers on our team
  • Experience processing payroll
  • Excellent customer service skills
  • Excellent communication skills
  • Ability to quickly learn and adapt to changing technology
  • Ability to work well within a team environment
  • A willingness to learn new bookkeeping procedures
  • An optimistic, friendly & supportive attitude
  • Ability to enter data in a timely and accurate manner

Bonus:

  • Experience using Client Track or similar databases
  • Experience using Quickbooks Online
  • Ability to generate and read reports

If you believe you are the perfect fit please send us an email answering the questions at the top of the ad. No phone calls or drop ins.

Job Type:

Part-time

Required experience:

  • Accounting: 1 year
  • Bookkeeping: 1 year

 

The truth and lies about GST/ HST

GST pinata

Launching a small business can feel like swinging blindly at a big, colourful, juicy piñata: a hit or a miss, but if it’s a strike, you get all the yummies and toys inside, along with some lame confetti and papier-mâché filler.

The lackluster, more boring, of the bunch become the key steps and financial decisions to starting a new business. But, without careful planning, you might as well be that person with their eyes shut, hopelessly flailing their stick into open air.

One of the things you need to consider is whether or not you need to charge Goods & Services Tax (GST).

We hope our handy tips and our clarification of some common myths helps you move forward in your small business planning.

 What is GST?

  • GST is an input tax: Meaning that the amount that you PAY to others reduces the amount that you OWE.

Why would you register for GST before making sales of $30,000?

  • If you are starting your small business and incurring high start-up expenses. You can get a refund on the GST that you pay on those expenses.

  • Some potential clients might not want to do business with you if you don’t have a GST number.

Why would you hold off from registering?

  • Keep your paperwork simple for as long as possible. If you register you will need to hire a bookkeeper to make sure your returns are correct, filed properly and on time.

  • When you bill your clients your total will appear cheaper than a competitor who charges GST.

 It’s July and I’ve just made sales of $30,000. What do I do now?

  • By law you have 3 months AFTER you have made sales of $30,000 to register and start charging GST.

  • You must include your GST number on all your invoices.

  • You must keep all records of GST charged and paid for 7 years

Here are four common myths about Goods and Services Tax:

Myth: Every small business must register for GST.

Fact: Every small business that has made GROSS SALES of $30,000 in a calendar year must register.

Myth: I am registered for GST but my sales are less than $30,000 so I do not need to charge my customers the tax.

Fact: If you are registered, then you are obligated by law to charge all of your customers GST.

Myth: GST and HST are two different taxes.

Fact: In fact they are the same tax being paid to the same agency (Canada Revenue Agency). The only difference is that in BC we now charge GST of 5%; before we charged HST of 12%.

Myth: My Business number is different from my GST number.

Fact: Your GST number is your Business number (9 digits) with the ending RT0001.

Avoid CRA penalties

Income Tax Filing Vancouver

Unleash your inner beach diva mid tax season, and rejoice!

Whether you’re ripping the waves in Tofino, or lounging at home with a bird’s nest do, file you e-return whenever, wherever.

Our quick and easy electronic tax filing option is a great alternative for anyone who prefers hassle-free, no appointment necessary service.

April 30th filing deadline is approaching as quick as the Easter bunny. Save time and paper, and avoid CRA penalties.

And don’t let taxes stop you from quality time on the beach.

Fill out the form below, and request an e-return today!

If you know someone who needs help with their taxes, please forward this post to them. We always appreciate your referrals. 🙂

Request an e-return

 

Stretch your tax worries away

u-work-out-bruh-funny-cat-meme
Feel the burn? Power through tax season like a champ with these sassy moves.  Stretch your tax worries away. By Anja Konjicanin

“Close your eyes.”

We did.

The Homeroom team was told to hold open our hands. 
A small, metallic object grazed our skin: a golden key. And then we felt up an old record. It was the intro to the importance of consistency.
On a name tag, we jotted down reasons for wanting to keep up with personal goals. Our ‘why’. Then we keyed the crap out of the disc. One scratch at a time, like squirrelly kids colouring, we repeated the seesaw movement, up and down, until any lingering hope of listening to the record died. Our ‘why’, though, lived on….and this stare…err album, would serve as the perfect reminder.

Peter Frampton gem
Shout out to the curly-haired legend, Peter Frampton….

Ever since we keyed mint vintage vinyls, a harbour for consistency meant to remind us of the importance of remaining faithful to our goals (and that we slayed fine records), we’ve stuck to our office challenge: stretch every day. That is, get up every two hours for a break from the chair.

Great warm-up for tax season, no?

These movements may not be much. The consistency with which they are repeated makes all the difference toward a long healthy life. Because a little bit goes a long way with these office-friendly stretches that keep on giving!

I’m doing it for the forever healthy, happy, energetic body. What’s your WHY?

Sit Less, move more, do more, feel great:

1. Neck mobilization (6-8 reps): Keeping your chin up turn your neck side to side with a pause and hold on each side. With your chin pointed down toward your chest roll your chin from shoulder to shoulder in gentle half-circle.

2. Shoulder and upper back openers (6-8 reps): Arms are in front of your with forearms and palms together. Separate your arms keeping them at a 90 degree angle push back until you feel your upper back squeeze together. Keep your back squeezed raise your arms over head. Return to the first position and repeat.

3. Wrist and hand stretch and mobility (6-8 reps): Arms are extended straight in front of your body. Flex or roll wrists and hands as demonstrated.

4. Good morning twists (6-8 reps): Arms are crossed against your chest. Keeping your head up and back straight hinge at the hips moving your chest toward the ground until you feel a stretch up the back of your leg (hamstrings). Hinge up to standing erect pressing your hips forward until you feel your bottom (glutes) flex tight. Then standing straight and tall twist to the right, return to the middle and twist left. Start at the first position and repeat as directed.

5. YTUW Back, Glutes, and Hamstrings Hinge (3 reps): Standing straight and tall push your glutes out (stick your bottom out). Raise your hands above head then move your arms down into a “Y” position, then “T”, “U”, “W”. Return to hands above head. Hinge forward keeping your head up and back straight until your hands come to rest on your desk or other flat surface. Slide your fingers forward on your desk feeling a stretch down the back of your body. Return to standing and repeat as directed.

6. Split Stance Tilt for calves and hip flexors (2 reps pers leg): Part 1 – Standing tall with feet shoulder width apart. Step forward into what would be a natural stride keeping your back heel pushed down to the ground. Push your hips forward toward the front foot keeping your chest high and your head up. Part 2 – In the same stance look up and fully arch your back and tilt your hips up and away from your back leg. Return to standing shoulder width and repeat with the other leg.

7. Ankle circles (2 reps per side): With your toe pressed into the ground make small circles rolling your ankle in one direction and then the other.

Canadian Tax Return Series: What Can Actors Claim?

Actor, business, Vancouver, taxes

Vancouver has a very successful entertainment industry and as a result is the home of many actors and actresses. For a lot of people in the acting community what you can and cannot claim as a tax deduction can be very confusing as urban legends about possible expenses tend to run rampant throughout the city.

We spoke with a local actor, David, who was audited by the CRA in 2001. A lot of the expenses he believed he could claim were rejected by the CRA because they were deemed as personal expenses.

We hope that this post will help you improve your understanding of what you can claim and the penalties that you may face if you claim expenses that are denied.

Did you think you had anything to worry about when you found out you were being audited?

Not really, I had been given a rough guide to follow by my accountant that listed items that were considered fair deductions. After referring to the guide I thought all of my claims were rather conservative.

What expenses did you claim that were denied?

The cost of my headshots, clothes that I had purchased specifically for auditions, movie tickets that I had purchased to study my craft and the cost of my acting classes were all deemed as personal expenses, not business expenses.

Additionally my car expenses were denied (which was surprising) after the CRA deemed traveling to and from auditions as a personal expense.

Were you penalized?

YES!! I ended up owing around 30K in tax and penalties after the audit.

What did you learn from this experience?

Be really conservative with what you claim. Also if you are in doubt check with a recommended tax consultant who regularly deals with actors tax returns.

Also make sure you communicate with the CRA if you owe money. They are fair and will devise a payment plan for you so long as you talk to them. If you ignore them they will just continue to punish you.

 

Homeroom Small Business Solutions has a lot of experience filing tax returns for actors if you would like us to help you complete you 2013 tax return please contact us to make an appointment.