Category - Did You Know….

HS & Partners LLP, assists with commercial mortgages & loans…

Business Development Bank of Canada (BDC) offers a close working relationship with HS & Partners LLP, Chartered Professional Accountants. 1. You could get up to $50,000* within two to five business days. No fees. Any project. 100% online application; 2. Commercial mortgage financing assistance – deals up to $50 million; 3. Commercial loan assistance. HSP has assisted a number of clients to apply for and obtain these types of loans. Please contact us if you have any questions about these services.

Day Traders…

Chances are that if you invest in the markets outside of your RRSP or RRIF, you treat any profits you realize from your investing activities as capital gains. The obvious advantage is that only half of the capital gains are taxed at your marginal tax rate. The disadvantage is that any losses incurred can only be applied against other capital gains, not against other sources of income. “Day traders”, on the other hand, who make their living by frequently buying and selling securities, are considered to be engaged in the business of buying and selling securities, and generally must report any profits as business income. For Ontario residents earning $220,000 of more, the tax rate is almost 50%! However, by setting up your own private company through which you manage your portfolio as a “day trader”, even taxpayers who are not licenced in the sale of securities, can take advantage of the small business deduction and pay corporate tax at the low rate of 15.5% on the first $500,000 income! If you would like to discuss this or any other tax planning matter, please feel free to contact us.

New Payroll Remittance Thresholds & Frequency Rules Effective for 2015

Some remittance threshold amounts were increased for amounts to be withheld after 2014. This may reduce how often you send the CRA your source deductions and how you can make your remittance. Information on other webpages may not be up to date yet.

Remitter types, their Average Monthly Withholding Amounts (AMWA) & Due Dates

Remitter Types AMWA Prior to 2015 AMWA as of 2015 Due Dates New or regular remitter Less than $15,000 Less than $25,000 The CRA has to receive your deductions on or before the 15th day of the month after the month you paid your employees. Quarterly remitter (except new remitters) Less than $3,000 Less than $3,000 If you are eligible for quarterly remitting, the CRA has to receive your deductions on or before the 15th day of the month immediately following the end of each quarter. The quarters are: * January to March; * April to June; * July to September; and * October to December. The due dates are April 15, July 15, October 15, and January 15.

Accelerated remitter threshold 1 $15,000 to $49,999.99 $25,000 to $99,999.99 The CRA has to receive your deductions by the following dates: * For remuneration paid in the first 15 days of the month, remittances are due by the 25th day of the same month. * For remuneration paid from the 16th to the end of the month, remittances are due by the 10th day of the following month. Accelerated remitter threshold 2 $50,000 or more $100,000 or more You have to remit your deductions through a Canadian financial institution so that the CRA can receive them within three working days following the last day of the following pay periods: * the 1st through the 7th day of the month; * the 8th through the 14th day of the month; * the 15th through the 21st day of the month; and * the 22nd through the last day of the month.

Please contact us for more information. Source: Canada Revenue Agency

Life Insurance Policy in a Corporation

Did you know that it is far more cost/tax effective to have your life insurance held in a Holding Company? Now that the top marginal tax rate for Ontario residents is almost 50%, you should consider keeping more of your money in a holding company and possibly transferring personally owned life insurance to the company so that your premiums can be paid with corporate dollars, rather than personal (high tax rate) dollars. Please call us for more information.

Managing Operational Risk – Worker Health and Safety Issues

The Ontario Government is serious about health and safety in the workplace and severe penalties are imposed in event of worker injury in unsafe conditions. For a company to be successful, operational risk attributed to health and safety issues must be addressed each year. The maximum penalties for a violation of the provisions of Occupational Health and Safety Act (“OHSA”) or its regulations (which include an injury in unsafe conditions) are set out in OHSA Section 66. The penalties which could be imposed, for each conviction, result in: * A fine of up to $25,000 for an individual person and/or up to 12 months imprisonment; * A fine of up to $500,000 for a corporation. The Occupational Health and Safety Act (OHSA) is the main legislative Act for Ontario’s for workplace health and safety. Other relevant legislation includes the Workplace Safety and Insurance Act (WSIA), Part II of which deals with the prevention standards for occupational injury and disease; and the Human Rights Code, which often has to be considered in dealing with OHS issues. Both Acts are available along with all of Ontario’s Acts and regulations at the e-Laws website. Some of the health safety issues to address include the following: * Worker safety education on an annual basis; * Delivery vehicle regular maintenance and insurance; * Mandatory hard hat and safety boots on Company premises including multi-level storage areas; * Rules for machine operators and vehicles on company premises including routines for backup of vehicles in parking areas; * Access to first aid stations; * Establishing a joint health and safety committee (“JHSC”). A Joint Health and Safety Committee (JHSC) is a committee of at least two people, who represent the workers and the employer at a workplace. In Ontario, certification training is required for one worker and one management member of a JHSC under the Workplace Safety and Insurance Board. An established JHSC is required under the Ontario Health & Safety Act in any workplace with at least 20 regularly employed workers, and for construction projects three months or longer with 20 or more workers. For further information on Worker Health and Safety, please consult us or visit the Ontario Ministry of Labour website for a wealth of information.

Government Programs & Grants available for SME’s in Canada

Did you know that there are various government programs and grants available for SME’s in Canada? The programs available can provide financing such as grants, contributions, subsidies, and loan guarantees. Find out what type of government financing might be available for your business. Click on the hyperlink link below for more information about : * Name of Program or Grant * Use of Funds * Eligibility * Dollar limits * Terms Government Programs & Grants for SME’s in Canada Please contact us, if you have any questions.

The Family Tax Cut – a drop in the bucket?

Last week the Harper government made good on its election promise to allow for some level of income-splitting for Canadian families. Unfortunately, the benefit is quite nominal. A married or common law couple can claim a maximum federal non-refundable tax credit of $2,000 for 2014 and subsequent taxation years. Couples can claim this credit when they file their 2014 Personal Income Tax Return. In addition to being married or living common law, the couple must also have a child under the age of 18. Please contact us for more information on the Family Tax Cut and to discuss other tax planning opportunities.