Personal Taxes are due by the end of April

Just a reminder that your personal taxes are due by the end of this month (April).  You really don’t want to be late…especially if you owe money to our beloved Government.  Call now to get them done ASAP.  403.966.3534

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What are “Accrued Liabilities”?

I often get asked what exactly are “Accrued Liabilites”.  Well…here’s my answer to that…

Generally speaking accrued liabilities are amounts that you owe but didn’t occur in the reporting period and haven’t been recorded yet under accounts payable.

In simple terms: Accrued liabilities are expenses that you want to record today, but don’t yet have an invoice for.

For the most part accountants will put their fees under this account. This allows you to use the expense of the work for the taxes in the year that it happens.

Wages, sales tax, rent, etc are all items that could be used as an accrued liability.

Examples of Accrued Expenses
Accrued expenses include the following:
  • Interest Payable
  • Interest Expense
  • Interest owed but not yet paid on borrowed funds.
  • Salary and wage expense owed, but not yet paid.
  • Salaries Expense*
  • Salaries Payable
  • *Many companies use “Salaries Expense” for employees paid by the week and
  • “Wages Expense” for employees paid by the hour.
  • Rent owed, but not yet paid.
  • Rent Expense
  • Rent Payable
  • Utility and telephone bills owed, but not yet paid:
  • Utilities [or Telephone] Expense
  • Utilities [or Telephone] Payable
  • Salary and wage expense owed, but not yet paid.
  • Salaries Expense*
  • Salaries Payable
  • *Many companies use “Salaries Expense” for employees paid by the week and
  • “Wages Expense” for employees paid by the hour.
  • Commissions and royalties owed but not yet paid.
  • Commission [or Royalty] Expense
  • Commission [or Royalty] Payable
  • Salary and wage expense owed, but not yet paid.
  • Salaries Expense*
  • Salaries Payable
  • *Many companies use “Salaries Expense” for employees paid by the week and
  • “Wages Expense” for employees paid by the hour.
  • Utility and telephone bills owed, but not yet paid:
  • Utilities [or Telephone] Expense


2015 Income tax rates

Canadian Tax Brackets 2015 | Income Tax Bracketsimages 2

  • 15% on the first $44,701 of taxable income
  • 22% on the next $44,702 of taxable income (on the portion of taxable income between $44,702 and $89,401)
  • 26%on the next $89,402 of taxable income (on the portion of taxable income between $89,402 and $138,586)
  • 29% of taxable income over $138,586

Are you making the most of your TFSA?

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On January 1, 2015,

Canadian residents age 18 and over received a new year’s gift from the federal government: $5,500 in additional Tax‑Free Savings Account (TFSA) contribution room. Haven’t opened a TFSA yet? If you were a Canadian resident 18 or older when the program was launched in 2009 and have never contributed, you now have a cumulative total of $36,500 in contribution room. Couples where both are eligible would have $73,000 between them.

TFSAs can play an important role in many families’ financial planning. These flexible accounts, appropriate for many different saving goals, offer tax‑free investment growth and tax‑free withdrawals. If you withdraw, you can recontribute the same amount in the following calendar year. TFSAs also offer an opportunity for income splitting (either spouse or partner can contribute) and estate planning.

Yet many eligible Canadians don’t have a TFSA, many of those who do haven’t maximized their contributions, and TFSA assets are often in cash rather than in an appropriately diversified portfolio. In other words, many of us are not making the most of our TFSAs. Are you? If not, here are five tips to help you catch up.

1. Contribute your tax refund

If you’re expecting a tax refund this year, consider depositing this “found money” directly into your TFSA. If you get the average refund of around $1,600¹, your TFSA contribution could grow to $2,865 over 10 years at an annually compounded rate of return of 6%.

2. Make an in-kind contribution

You don’t necessarily have to find extra money in your budget or cash out investments to make a TFSA contribution. Instead, you can make an in-kind contribution of a qualified investment from a non-registered account. Your contribution amount will be the fair market value of your investment.

If you’re contributing an asset that has increased in value, however, caution is advised. The transfer may trigger a taxable capital gain, or a capital loss that could not be claimed.

3. Set up regular contributions

One of the most effective ways to maximize your TFSA contributions every year is to set up regular contributions. It’s often easier to plan to make weekly contributions of just over $105 or monthly contributions of just over $450 than annual contributions of $5,500 — and the money you contribute earlier in the year can benefit from more time growing tax‑free.

4. Maximize tax‑free growth

As with any other account, how you invest your TFSA funds can make a big difference to your savings down the road. Many Canadians are very conservative in their TFSAs, favouring high-interest savings accounts and guaranteed investment certificates. That may be appropriate if your goals for your TFSA money are short term. If you have more time before you plan to access your TFSA savings, investments with higher potential rates of return can help you take greater advantage of tax‑free growth.

5. Talk to your Financial Advisor

Whether you’re building a contingency fund, saving for short- to medium-term goals, or supplementing longer-term savings in a Registered Retirement Savings Plan (RRSP) or Registered Education Savings Plan (RESP), your TFSA is an excellent, flexible way to help you reach your goals. Talk to your CIBC Financial Advisor about how to make the most of your TFSA.

TFSA snapshot

Here is a quick look at what other Canadians were doing with their Tax‑Free Savings Accounts as of 2012.

How many Canadians had a TFSA? 9,596,830
How many Canadians contributed? 6,174,590
How many Canadians maximized their contribution? 2,254,030
What was the average contribution? $5,425.98
What was the average unused contribution room? $9,969.19
What was the average fair market value? $9,117.88

BUSINESS EXPENSES THAT CAN BE USED

Receipts

BUSINESS EXPENSES THAT CAN BE USED

  • Advertising
  • Bad Debts
  • Benefit Plan
  • Business taxes, fees, licenses, dues, memberships and subscriptions
  • Delivery and freight
  • Insurance
  • Interest
  • Maintenance and repairs
  • Management and administration fees
  • Meals and entertainment (when entertaining a client)
  • Motor vehicle expenses
  • Office supplies & expenses
  • Legal, accounting and other professional fees
  • Property taxes
  • Rent
  • Salaries, wages and benefits
  • Travel
  • Telephone & utilities

If you do not have an office in another location, you can write off a portion of your home expenses.  We will require the total square footage of your home and the square footage used for business purposes.

  • Heat
  • Electricity
  • Insurance
  • Maintenance
  • Mortgage interest (can be obtained from your bank)
  • Property taxes

Capital cost items:

These are items such as furniture and computers purchased to run your business; only a percentage of captial cost allowance is used each year as an expense to your company.

Vehicle Expenses:

If you are a limited or incorporated company and you drive your personal vehicle for business purposes, keep a log of all kilometers driven for business and a calculation can be done monthly or yearly to recapture the amount as an expense.  Currently the Government allows .53 cents for the first 5000 kilometers and .47 cents for every kilometer after that; however, if you use your vehicle solely for business purposes (you have another vehicle for personal use), you are able to write the entire vehicle off.

REMINDERS

ReminderREMINDERS

1.  RRSP deadline – March 1, 2015

2.  Personal Taxes Due – April 30, 2015

3.  Quarterly GST filers – due 30 days after quarter cut-off

4.  Payroll – source deductions due the 15th of the following month deductions are withheld from employees

5.  T2 Corporation Taxes – due no later than six months after your year-end

6.  Make sure to take your odometer reading at year-end for taxes

Bookkeeping Rates & Fees

Money pic

MONTHLY BOOKKEEPING RATES & FEES

BASIC PACKAGE                                                                                 $150.00 per month*

    This package is great for the Consultant / Sole Proprietor  working with a     maximum of five clients in a year.

        INCLUDES:

  • Sorting and filing of your receipts
  • Data entry of all your income and expenses
  • GST remittance as per required

 

BRONZE PACKAGE                                                                             $250.00 per month*

    This package is great for the Small business consisting of one person /     partnership with a maximum of five employees and/or subcontractors.

        INCLUDES:

  •  Sorting and filing of your receipts if required
  •  Reconciliation of one bank statement and one credit card statement 
  •  GST remittance as per required
  •  Compile year-end financial statements
  •  Year-end Preparation for Accountant
  •  **Payroll (see services below)**

 

SILVER PACKAGE (most popular)                                                   $450.00 per month*

    This package is great for the medium sized business with five or more     employees.  (approx. 8-10 hours)

         INCLUDES:

  •  Sorting and filing of your receipts if required
  •  Reconciliation of one or more bank and credit card statements
  •  Posting all cash receipts pertaining to your business
  •  Reconciliation of payables and receivables
  •  GST Remittances as per required
  •  Compile year-end financial statements
  •  Year-end preparation for Accountant
  •  **Payroll (see services below)**

 

GOLD PACKAGE                                                                                  $750.00 per month*

 (approx. 10+ hours per month)

    This package is great for the larger sized businesses looking to out-source all     bookkeeping needs including payables & receivables

 

        INCLUDES:

  •  Sorting and filing of your receipts
  •  Reconciliation of all bank and credit card statements (no limit)
  •  Posting all cash receipts pertaining to your business
  •  Maintanance of payables and receivables (including paying vendors)
  •  Job Costing and/or Class Coding
  •  GST Remittances as per required
  •  Compile year-end financial statements
  •  Year-end preparation for Accountant
  •  **Payroll (see services below)**

 

**PAYROLL SERVICES INCLUDE**

  • Run payroll (weekly, bi-weekly, semi-monthly, monthly)
  • Email paystubs to your office
  • Email Source Deductions to your office due the 15th of the following     month
  • Process t4’s and T4A’s at calendar year-end, mail to employees    and submit to Government
  • Process ROE’s as required


PAYROLL SERVICES & FEES (only)

  •   For 1st 10 employees                                                          $100.00 per month
  •   Each additional 10 employees                                       $25.00 per month
  •   Setup Fee in Accounting Program (if required)     $100.00 one time

 

ADDITIONAL PAYROLL SERVICES

  •  Printing computer generated payroll cheques         $25.00 per month
  •  Direct Deposit                                                                       $25.00 per month

 

OTHER SERVICES

  • Personal Tax Returns (1-5  T-slips)                                    $25.00 starting
  • Personal Tax Returns (small side business)                  $50.00 starting
  • Corporate Tax Returns (Basic Corp Business)             $250.00 starting
  • Courier Services; Pickup & Delivery                                 $30.00 per month
  • Commissioner for Oaths                                                       $25.00
  • Annual or Incremental                                                          $48.00 hourly
  • Quarterly Bookkeeping                                                         $250.00 (5 hours)
  • Administrative Services (incl. sorting & filing)           $25.00 per hour
  • Setup Fee of your books (if required)                             $200.00 one time

 

*NOTE:  PRICES MAY VARY DEPENDING ON VOLUME AND COMPLEXITY OF BOOKKEEPING.

TFSA Contribution Information for 2013

The TFSA account contribution limit is going up from $5,000 a year ago to $5,500 for 2013.

Canadians will also see certain income tax and benefit amounts increase two per cent for inflation.

The federal tax bracket thresholds will all increase by two per cent, with the top bracket of 29 per cent not kicking in until taxable income of $135,054 for 2013, up from $132,406 for 2012.

Amounts for several non-refundable tax credits also increase, including the basic personal amount which will stand at $11,038, up from $10,822.

In Alberta, seniors and those who live with them will also be able to take full advantage of the Healthy Homes Renovation Tax Credit that allows people to claim up to $10,000 worth of eligible home improvements that was announced late in 2012.

“Unless someone had a renovation that they were planning to do, they weren’t going to squeeze that in,” Safar said of the measure which could save you up to $1,500.

RESP Contribution Limit | Maximum RESP Contribution | RESP Rules

RESP (Registered Education Savings Plan) Contribution Limit | Maximum RESP Contribution

RESP (Registered Education Savings Plan) Canada is a savings plan that is registered by the Government of Canada to allow savings for a child’s education to grows tax-free until the child is ready for his/her post-secondary education.The child named in an RESP is known as a beneficiary. Unlike RRSPs (Registered Retirement Savings Plans), the contribution for RESP Canada is not tax deductible.

RRSP Deadline 2015 for 2014 RRSP Contribution

RRSP Deadline 2015 for 2014 Tax Year: March 01, 2015

Your RRSP deadline for contributing to your RRSP for the 2014 tax year has to be before March 01, 2015.

You may contribute to your RRSP until December 31 of the year in which you reach age 71. The following limits and deadlines apply annually.

Maximum Annual RRSP Contribution Limits

Year Contribution limit
2011 $22,450
2012 $22,970
2013 $23,820
2014 $24,270
2015 $24,930

Your allowable RRSP contribution for the current year is the lower of:

  • 18% of your earned income from the previous year, or
  • The maximum annual contribution limit for the taxation year, or
  • The remaining limit after any company sponsored pension plan contributions.

Earned income includes salary or wages, alimony received, and rental income, among other income sources, but does not include items such as investment income.

Company Pension Plan or Deferred Profit Sharing Plan – As a member of a company–sponsored registered pension plan or deferred profit sharing plan, the amount that you can contribute to your RRSP must be reduced by the total value of the pension credits you earned for the year.

This amount is referred to as a pension adjustment (PA) and it is reported on the T4 slip (Statement of Remuneration Paid) that you receive from your employer.

Annual Contribution Deadline – To be eligible for an RRSP deduction in a specific taxation year, you can make contributions anytime during the year, or up to 60 days into the following year.

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