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Meals for Staff? What is eligible? Lisa Patrick

Criteria:
a.   if any work shift exceeds 12 hours (that would include travel time to job site) = one meal a day write “shift over 12 hours” on receipt
It is expected after a 12 hour work shift, the employer provide 1 meal to the employee.
The income tax act allows this meal to be a company expense with out consideration to including it as income to the employee.
Write “job site or contract or maintain day planner, ensure employees time sheet reflects the shift period.
 
b.   if any client visit included a meal:
write “client name, agenda, time” on receipt
 
c.  
 if any over night travel includes a meals:
 write “client name, agenda (purpose)” on receipt

Go to our free product and learn more.

Darlene Lafond C.P.C., R.P.A.


Employee Gifts?? Lisa Patrick

There are tax guidelines on how much you can give your employee - either in gift or in cash that may or may not result in a taxable benefit.
 
Please do look at the deal carefully every year as the government does change the rules.
There was major change effective January 1, 2010….
 
December 31, 2010 is fast approaching for the preparation of the T4s…
 
Please visit CRA website to get the spit from the horses’ mouth.
employer guide on benefits to employees <http://www.cra-arc.gc.ca/E/pub/tg/t4130/t4130-10e.pdf>
 
this is a section from the guide we believe you should read:
Gifts, awards, and long-service awards

Policy for non-cash gifts and awards

to help you determine if there is a taxable benefit for the employee.
Go to www.cra.gc.ca/gifts, select “Rules for gifts and awards,”
then select the “Q&A” icon.

C2online


Asset Sales (tanigble & intangible) Lisa Patrick

1.        asset sales matching the net value remaining for that asset for tax purposes – results in no taxable income.
Review the last tax year filed of T2 schedule 8 undepreciated capital cost allowance (UCC) to determine that tax free value.
 
2.        Using the sale of assets in a corporation can result in more net money to the shareholders than a sale of shares by a shareholder.
Selling assets at a profit (gain) over the assets initial costs; result is an income to the company that qualifies for a capital gain…
 
The non taxable part of a gain (currently 1/2 of the gain) accumulates to the capital dividend account
  (1/2 of a gain (non taxable portion) tangible asset capital gain & 1/2 of gain (non taxable portion) intangible assets gain (good will) accumulates to the capital dividend account (cda))
(caution; if the assets book value was ever depreciated that depreciated portion will go back into income)
 
The CDA (capital dividend account) provides the opportunity to avoid taxable dividends; issue non taxable dividends from the value in the capital dividend account:
Depending on what other personal income expectations for the year are:
Exploring whether the corporation may issue a non taxable dividend from the capital dividend account…
 
Tax strategy when the corporation plans on paying the non taxable dividend to its shareholders.
T2054 - Election for a Capital Dividend Under Subsection 83(2) <http://www.cra-arc.gc.ca/E/pbg/tf/t2054/README.html>


A Curriculum to promote professionals for the 21st century! A business expense?? Lisa Patrick

Did you know that ...

Only 3% of people in Western society have clear, written goals. 

A study was conducted on students in the 1979 Harvard MBA program. In that year, the students were asked, "Have you set clear, written goals for your future and made plans to accomplish them?" Only three percent of the graduates had written goals and plans; 13 percent had goals, but they were not in writing; and a whopping 84 percent had no specific goals at all.

Ten years later, the members of the class were interviewed again, and the findings, while somewhat predictable, were nonetheless astonishing. The 13 percent of the class who had goals were earning, on average, twice as much as the 84 percent who had no goals at all. And what about the three percent who had clear, written goals? They were earning, on average, ten times as much as the other 97 percent put together.

Although  most company’s will claim the cost to train their staff as a business expense,  the claim of the time to get the training can not be claimed by the  individual on their personal tax return if the tuition was not paid to a  federally certified educational institute.
(educational tax credit is based  on hours committed to a course curriculum that provides skills for a job)  
 
Federal certification  as an “educational institute for professional training” may be represented as  a curriculum to promote professionals for the 21st century.
Need  certification for
1.                   necessary  for claiming the time and the training cost as a personal tax credit
2.                   necessary  to claim as an educational credit if employee tuition paid but not the time to  attend the course.
3.                   necessary  to claim as an education credit if employee wants to qualify for the  textbooks tax credit available to personal tax credit.

Certification of Private Educational  Institutions
Purpose of Certification  
The  purpose of certifying private educational institutions under Sections 118.5  and 118.6 of the Income Tax Act is to allow students, 16 years of age or more,  to qualify for Tuition and Education Tax Credits.  
Eligibility  Criteria
·        To have a business  name and give the courses or training in Canada.
·         To be a private school or college, a  professional organization or business providing courses, other than courses  designed for university credits.
·         •To offer a qualifying educational  program, that is courses specifically designed to furnish a person with skills  for, or to improve a person’s skills, in a recognized  occupation.
NOTE: The following are examples of educational programs  that do not qualify: conferences, workshops, seminars, courses designed  for personal development, general knowledge, religion, adult basic education,  literacy, tutorial, job interview techniques, preparation for exams and  courses paid by employers.
·        To  be provincially licensed as a private vocational, trade school or the  equivalent, if that is a requirement of the province where the courses are  given.
I BELIEVE IN ALBERTA THIS IS NOT REQUIRED.
·         To submit a written request for  certification by the Minister of Human Resources and Social  Development:

  Application - Certification Kit <http://www.hrsdc.gc.ca/eng/learning/canada_student_loan/MCL/app.shtml>  This is the “recent” application kit for federal certification that will  provide you the authority to issue tuition receipts and education credits for  tax purposes.  

Or contact us to learn more...

Lisa Patrick
CEO, C2online.ca
 

 


CPP Benefits - Common law spouse has died. Lisa Patrick

Call 1-800-277-9914.  Explore the widow pensions (survivors pension).  In most cases if you can prove a common law or martial relationship; even if you are not living together; and no other spouse applies the benefits may be allocated to you. 

Please note a divorced spouse is NOT eligible.

If you have any questions contact us.

 


Dividends Paid - Avoid Canada Pension Plan Lisa Patrick

Dividends paid to a shareholder avoid Canada Pension Plan costs….but this does not save the corporation any tax!
 
If you want to pay less Canada pension on wages from your corporation, consider some income to be paid as the rental costs the corporation paid to you the shareholder.

This will result in any excess rental amount you are paid; after you claim a deduction for the portion of the household costs that corporation uses, you will not require the payment of any Canada pension plan for wages as it is NOT a wage from the corp.

Darlene Lafond C.P.C., R.P.A.


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