Watts Advisors Accounting & Tax Blog
Increase in Effective Tax Rate for Non-Eligible Dividends 0
December 4, 2013Starting in 2014 the Canada Revenue Agency (CRA) has changed the way that non-eligible dividends are taxed. This change will effectively increase the tax rate for non-eligible dividends. This will cause business owners to re-evaluate the way in which they draw income from their business (dividends vs. Salary). Let’s look ...
Read MoreIncorporation vs. Proprietorship 0
July 4, 2012One of the biggest considerations for small businesses is whether to incorporate or to operate as a proprietorship. What’s the difference? The main difference between corporations and proprietorships is that corporations become their own legal entity while proprietorships are operated under the name of the proprietor. From a tax perspective a corporation ...
Read MoreDeductible Employment Expenses 0
March 27, 2012There are a few instances where you are able to deduct expenses against employment income. The content of this blog will just cover the most common expenses of standard employment arrangements. There are specialized rules for commission employees and other unique circumstances as well as more specialized expenses that will ...
Read MoreCRA Giving Out 20% Penalty for Missing Information 0
March 20, 2012Most people aren’t aware of one of the harshest penalties that the CRA (Canada Revenue Agency) gives out. This penalty doesn’t necessarily relate to fraud or tax evasion, but can occur if someone is simply forgetful or unorganized. Over the last couple of years the CRA has started charging a 20% ...
Read MorePersonal Tax Return Checklist 0
March 6, 2012Below is a checklist that I have put together to help my clients organize and compile the information needed to complete their personal tax return. Slips All information Slips (T4, T3, T5, T4E, T4A, T4AP, T4RSP, T4RIF, T5013) Old Age Security and CPP benefits Other Pensions and Annuities Employment insurance benefits Social assistance payments Workers compensation Benefits RRSP ...
Read MoreEmployee vs. Contractor 0
February 10, 2012Employment Income vs. Business Income One question that I often get from clients is related to whether individuals are considered employed or self-employed. This determination has a significant impact on taxable income, the ability to deduct certain expenses, and the requirement to make payroll remittances such as CPP and EI. Regardless ...
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