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Easy, breezy, beautiful CRA online payment option

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“Bummer, I owe the CRA money! How do I pay them?”

Whether you have taxes owing for this year 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 Canada Revenue Agency (CRA) is getting hip by being down with the online payment world!

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
    • The account number for personal: SIN number
    • The account number for business: Business number

Offline payment methods:

Remeber these ones take more time so be sure to give yourself a head start if you want to avoid late payment penalties.

  • 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 remittance voucher that you have, or call the CRA and request the mail one to you. Just know 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, 2018. 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, you do not have to make a payment.

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

They start charging compound daily interest on any outstanding balance starting May 1, 2018, 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.

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

 

Tax tip: Claiming childcare expenses

Ryan Gossling, income tax, childcare expenses, child care expenses

A lot of new mamas (and dadas) come to Homeroom unsure about what childcare expenses they can and can’t claim come tax time. 

Below, we look at eligible childcare costs, the amount you can deduct and which parent claims the costs. 

So, what constitutes a childcare expense?

Childcare expenses are amounts you or another person paid to have someone look after an eligible child so that you or the other person could:

  • carry on a business either alone or as an active partner
  • earn income from employment
  • attend school under the conditions identified under Educational program
  • carry on research or similar work, for which you or the other person received a grant

The child must have lived with you or the other person at the time the transaction incurred for the expense to qualify. Usually, you can only deduct payments for services provided in Canada by a Canadian resident. See other situations for exceptions.

What are eligible childcare expenses?

  • Daycare/ day nursery schools or caregivers providing childcare services. An official childcare expense receipt must be provided.
  • If you employ a nanny, those costs are deductible. Contact us if you need help with payroll source deductions here.
  • Boarding school or overnight sports schools/ camps where lodging is involved (see note in Part A of Form T778)
  • Day camp/ sports school expenses where the primary goal of the camp is to care for childrenNote: An institution offering a sports study program is not a sports school.

Children’s sports and arts credits:

Any program that runs for minimum six consecutive weeks would apply. The maximum amount is $1,000 for sports and $500 for arts (eg. swimming lessons, soccer, dance, hockey, theatre, music and art classes.)

Good to know:

  • The child must have been under 16 years of age (or under 18 years of age if eligible for the disability tax credit) at the beginning of the year in which the eligible expenses were paid.
  • You can claim an additional amount of $500 for each eligible child who qualifies for the disability amount and for whom you paid a minimum of $100 in registration or membership fees.
  • Two parents can claim eligible fees for the same child, as long as they do not claim the same fees and the combined amount is not more than $500

Note: Save your receipts, and dig up more info on the children’s arts tax credit here, and for the children’s fitness tax credit here.

Is your child eligible?

An eligible child is a child of you or your spouse or common-law partner, or a child who was dependent on you or your spouse or common-law partner. Net income in the year was less than or equal to the federal basic personal amount ($11,138 in 2014, $11,327 in 2015).  The child must have been under 16 years of age at the beginning of the year, unless the child was mentally or physically disabled.

Who claims the childcare costs?

When the child lives with both parents, the parent with the lower net income (or zero net income) must claim the expense deduction. The supporting parent with the higher income may claim a deduction only during the period in which the lower income spouse or common-law partner is mentally or physically infirm, confined to a bed or a wheelchair, attending full- time at a secondary school or a designated educational institution or incarcerated in a correctional facility.

The amount that can be claimed for childcare is subject to special rules when the lower income spouse or common- law partner is in part-time attendance at a designated educational institution. Special rules also apply for single parents and those who have separated during the year or are divorced.

How much can you deduct?

You can deduct up to $8,000 annually for each child who is aged six or under at the end of the year, and up to $5,000 for each child aged seven to 15 at any time in the year.

This limit goes up to $11,000 annually for each child who is eligible for the disability tax credit (see topic 80). Also, the total deduction can’t exceed two-thirds of the salary or business income of the parent who is required to claim the deduction. However, it’s limited by the actual amounts paid in the year for childcare.

Still have questions? Comment below for a quick response, or call us at 604-739-9536.

So you think you can claim that expense?

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That’s Michelle Chand, our cool new intern, and a messy bookkeeping project on her lap we call The Big Blue. But all you see is your face,  stuck amid a pile of receipts you are not even sure you can claim as a business expense and a mean clock ticking down to tax time? We can help!

So, you just got a styling hairdo at your favourite salon and a fancy Aritzia number to go with it.  But can you claim your new look come tax season?

Every year around this time, clients come in, confused about what they can and can’t claim.

So, we decided to bust common tax myths:

Home office Tax Myths:

  • Your Dog is not a security expense – You laugh but this is a legit thing people try to claim! We repeat if you have a home office you cannot claim any expenses related to your dog as a security expense. That means vet bills, dog food and hours spent loving your dog are not under any circumstances tax deductible.

  • Home office deductions are based on the percentage of your home that you use to conduct business NOT  the size of your home. You need to calculate: square footage of business area and divide that by the square footage of your home. Storage space for business supplies and/or tools also can be included in your calculations as an area used for business.

Clothing Tax Myths:

  • GENERAL CLOTHING CANNOT BE WRITTEN OFF UNDER ANY CIRCUMSTANCES. The only benefit you are going to get from purchasing some new work threads is the satisfaction of looking really good. The only exception to the rule is safety clothing such as hard hats or steel toe boots and company branded clothing that is considered a uniform.

  • Dry Cleaning is only deductible if you are having a company uniform cleaned. That beautiful Armani Jacket you own unfortunately needs to be cleaned at your own expense.

Food Tax Myths:

  • A legitimate meal expense is one where you are going out with a colleague or potential client to discuss business. Going for a solo lunch while working doesn’t count for a meal. You should also record the name and number of the client you are meeting with on the meal receipt.

NOTE: In an audit of one of our clients, the auditor asked to see each meal receipts with the name and phone number of the person who was present at the meal AND a description of the type of business that was discussed.

Vehicle Tax Myths:

  • Just because your vehicle is branded doesn’t mean that you write off 100 percent of vehicle expenses. Auto expenses are calculated based on the percentage of the year’s total km’s that are driven for business purposes. That said the expense of having your car branded is 100 percent deductible as an advertising expense.

Client Gift Tax Myths

  • If you purchase liquor or any type of gift certificate from a restaurant, for example, a Starbucks or Whole Foods gift certificate, as a client gift, this is considered a MEALS expense (so only 50 percent is deductible) NOT an advertising expense (100% deductible). In order to deduct client gifts at 100 percent you need to buy gifts that aren’t food such as spa packages, flowers, Home Depot gift certificates etc.. Additionally you need to make sure you note which client received what gift in case you are audited.

Employee Tax Myths:

  • If you receive a T4 from your employer, you are not eligible to deduct ANYTHING unless your employer fills out a T2200 form authorizing you to do so. That said any dues or insurance you purchase from professional organizations can be deducted so long as you have been designated as a professional.

Student Tax Myths:

  • Unfortunately, as a student, you are not allowed to deduct any additional expenses beyond what your tuition slip from your educational institution (T2202) indicates. Therefore items such as your computer and stationery supplies are non-deductible.

When filing your taxes it is important to keep in mind that from the CRA’s perspective anything that could be deemed as personal, WILL be deemed as personal in the event of an audit.

Although you can take the risk and claim the above expenses you really should not, because in the event that you are audited and your claims are denied you will be forced to pay a fine in addition to paying back all of the tax you avoided along with interest.

We are taking appointments for tax consultations now so if you want to get ahead of the rest and book your ideal time contact us now.

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

At the Homeroom office, we have set ourselves the challenge to stretch every day.

So we get up every two hours for a break from the chair.

Great warm-up for tax season, right?!

These movements may not be much but 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!

We are 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 your 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.

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 surfaces. 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.

Small daily actions go a long way. They can keep you healthy, stress-free, and organized.