How to pay a subcontractor

Some jobs are too big to handle on your own and you may need to bring on a subcontractor either for a certain period or project. Determining whether someone is an employee or an independent contractor is a larger topic for another day but once you have determined that your …

Where did my corporation go?

If you have an Alberta Corporation, you are required to file an Annual Return each year to update the address, shareholders, and directors. This is similar to paying yearly for your vehicle registration. This return is separate from your provincial and federal tax returns and must be filed every year …

Employment Standards in Alberta

Navigating the government’s rules and regulations that come along with having employees can be a lot of work for any business owner. Research is required to ensure that both sides of the employer-employee relationship are respected and protected, and the documents available on the topic contain a lot of information …

Two Tier Tax System?

Guy Caron, a Member of Parliament for Rimouski, Quebec has recently written a scathing condemnation of CRA and how they treat affluent people vs how they treat average taxpayers. He gives examples of double standards in assessing penalties, protecting anonymity, and a culture of secrecy that keeps even parliamentarians from …

Get a Receipt

We told you earlier about how to claim meals and entertainment as a business expense. It’s always important to get a receipt in order to claim the deduction on your taxes but CRA has launched a new campaign that gives another good reason to ask for a receipt when you …

Picking up the Cheque

One of the most misunderstood business deductions is the “meals and entertainment” claim. Either people forget to save their receipts and don’t claim it at all, or they treat their whole party because it’s a business write-off. The basic rule is that if you are paying for meals or entertainment …

Is Your Business Off Track?

You are putting in the long hours and starting to feel a bit burned out.  Business is not as usual.  You are finding it a struggle to keep up with all the business expenses not to mention the upcoming tax bill around the corner.   Pretending there is no problem …

How far did you drive?

If your job involves a lot of driving, there are significant deductions that are available to you. Whether you drive your own personal vehicle for work or your corporation owns a car that you use, it’s important to keep track of the kilometres you drive for work. There are three …

Wages or Dividends

By far, the most common question we get from business owners is “Should I pay myself dividends or wages?” Unfortunately, the answer is different for everyone. The first thing we recommend is to try to minimize the amount of money you draw out in the first place. If you are …

Keep your money in your corporation

Who wants to pay less tax? The best reason to incorporate your business is to save taxes. In Alberta right now, the highest personal marginal tax rate is 48% while the small business corporate tax rate is 13.5% and is set to be reduced to 12.5% in 2017. So, this …