THE TAX FACTOR - Simply Financials - Taxsimplyfinancials.com/images/uploads/(Nov22)_Simply_Financials-Th… · 2016 Winter Edition Issue Nov. 22 (44 pages) Canada Revenue Agency Rates

Diana Read-Miedema ACTS—ACCOUNTING COURSES TAX SUPPORT Nov22/16

Simply Financials-The Tax Factor© Disclaimer. Not responsible for errors or omissions. Educational use only.

Free PDF at SimplyFinancials.com. Printed- copy $25+postage+tax. For Educational Use Only. Not an Engagement of Service. Will not be held liable for errors or omissions.

Raise the Bar in 2017! Cutting Edge Skills for Experienced Sage 50 Users, 4 Aces to Master Sage 50

COURSES 13 to 19

T1-T2, Dates, Rates, CCA, Auto, Medical/Moving New Rules when sell or change use of principal residence

TAXATION 20 to 38

SIMPLY FINANCIALS -

THE TAX FACTOR(c)2009

2016 Winter Edition Issue Nov. 22 (44 pages)

Canada Revenue Agency Rates used Revenu Quebec not included due to complexity.

Diana’s BIO, Canada-wide Tech Support-Sage 50 CAD, NASBA.CA Networking Accountants & Sm Biz Assoc.

SUPPORT 39 to Cover

TD1, Stat Holidays, Benefits, Contractor, T4A, PSB, Sage 50 G-HST codes, Governance = BCP + DR

ACCOUNTING 4 to 12

http://www.simplyfinancials.com



ACCOUNTING

Payroll-TD1 NRTC amounts to 2017 Payroll-Maximums, CPP, EI, WCB Payroll-STATS & Retail Closing Days in NS Payroll-Taxable Benefits Sage 50 CAD Sales Tax Code Setup Contractor-PSB, T5018, T1204 Corporate Governance –BCP, DR, Go-Bags T4A

4 5 6 7 8 9 10-11 12

COURSES Sage 50 Cdn Bookkeeping

Cutting Edge for Experienced 1-day/3-evg 4 ACES to Master Sage50 Registration

Spades 1–Groundwork, install, design Clubs-Clients, Vendors, Taxes, Bank Hearts-Basic Payroll & Compliance Diamonds-Inventory, Mgmt. Reports

Bookkeeping 1-day or 5-day prep for certif.

13 14 15 16 17 18 19

TAXATION T1-2016 T2-2017

For EFILERS Only Tax Tips for T1 –2015 Personal Draft—What’s New in T1-2016 Medical & Moving Travel & Prescribed CCA-Depreciation Moving Expenses (Eligible) Insurance—Disability Insurance-Private Health Service Plans Change in use of Residence MP, DB, RRSP, YMPE, TSFA, Pension SPLIT T1-2016 Personal Tax Rates T2-2015 & 2016 Corporate Rates Shareholder Loans & Prescribed Rates Late Penalties—Slips and T1 CRA Dates Due & BN Codes AUTO—T4 Taxable Benefit AUTO-T777 & T2125 Limits, Tax Free Allow AUTO-How to Prorate for T777 & T2125

20 21 22 23 24 25 26 27 28 29 30 31 32-33 34 35 36 37 38

SUPPORT

Custom help $60/h Maritimes $100 rest of CAN

NASBA.CA 2007, 2008, 2009 NASBA.CA 2010, Greg Edwards, CA, AcSB NASBA.CA 2014, Glen Schmidt, FCGA Services, Achievements by Diana R-M

Sage50 Tech support: Remote, SageHub

39 40 41 42-43 Cover

Table of Contents Colour Coded 2



A.C.T.S. Certifications:

* A: Certified Professional Bookkeeper, 2008

* C: Sage Certified Trainer by Sage U Canada, 2009

* T: Certified by Cdn School of Tax Accounting ,1988

* S: Sage 50 CAD Certified Consultant 2017 (Oct/16)

Diana has taught many courses with her copyrighted manuals in

SageHub Training Room at 20 Willow St Truro NS and in board rooms of industries, accounting firms, non-profits, and CRA HFX.

On October 12, 2016 Diana was an Instructor at CPA NB Professional Development Fall Conference in Fredericton with her newest course as seen in ad below.

Welcome to Simply Financials in SageHub Truro with Diana Read-Miedema

3



PAYROLL TD1 TAX CREDITS

Provincial 2017 2016 2015 2014 2013

TD1 Fed 11,635 11,474 11,327 11,138 11,038

TD1-AB 18,691 18,451 18,214 17,787 17,593

TD1-BC 10,027 10,027 9,938 9,869 10,276

TD1-MB 9,271 9,134 9,134 9,134 8,884

TD1-NB 9,895 9,758 9,633 9,472 9,388

TD1-NL 8,978 8,802 8,767 8,578 8,451

TD1-NS 8,481 8,481 8,481 8,481 8,481

TD1-NT 14,278 14,081 13,900 13,668 13,546

TD1-NU 13,128 12,947 12,781 12,567 12,455

TD1-ON 10,171 10,011 9,863 9,670 9,574

TD1-PE 8,000 8,000 7,708 7,708 7,708

TD1-SK 16,065 15,843 16,639 15,378 15,241

TD1-YT 11,635 11,474 11,327 11,138 11,038

4

FEDERAL 2015 2016 2017 T1 LINE

Basic Person 11,327 11,474 11,635 300

Equivalent to Spouse 11,327 11,474 11,365 303/305

Amt-Infirm Dependents 18 or older 6,700 6,788 6,883 306

Eligible Pension Income 2,000 2000 2,000 314

Age 65 Amount 7,033 7,125 7,225 301

Disability Amount 7,899 8,001 8,113 316

Caregiver Amount 4,608 4,667 4,732 315

Education & Textbook Amt Fulltime 465/mon 465 Liberals 323

Education & Textbook Part-time 140/mon 140 stopped 323



PAYROLL Maximums: CPP, EI, WCB

5

Worker Comp. Max awcbc.org 2017 2016 2015 2014 2013

Alberta 98,700 95,300 92,300 90,200

British Columbia 80,600 78,600 77,900 75,700

Manitoba 125,000 121,000 119,000 111,000

New Brunswick 61,800 60,900 60,100 59,500

Nfld & Labrador 62,540 61,615 60,760 54,155

Nova Scotia 58,200 56,800 56,000 54,400

Ontario 88,000 85,200 84,100 83,200

PEI 52,200 52,100 51,100 50,000

Saskatchewan 69,242 65,130 59,000 55,000

CPP 2018 2017 2016 2015 2014 2013

Max 55,300 54,900 53,600 52,500 51,100

Exemption 3,500 3,500 3,500 3,500 3,500

Rate 4.95% 4.95% 4.95% 4.95% 4.95%

Employer/ee Max 2564.10 2544.30 2,479.95 2,425.50 2,356.20

Self-employed Rate 9.9% 9.9% 9.9% 9.9% 9.9%

Self-employed Max 2564.10 2544.30 2,479.95 2425.50 2356.20

EI 2017 2016 2015 2014 2013

Max 51,300 50,800 49,500 48,600 47,400

Exemption Nil Nil Nil Nil Nil

Employee Rate 1.63% 1.88% 1.88% 1.88% 1.88%

Employee Max 836.19 955.04 930.60 913.68 891.12

Employer Rate 2.282% 2.63% 2.632% 2.632% 2.632%

Employer Max 1,170.57 1,337.06 1,302.84 1,279.15 1,247.57

Self-employed rate 1.63% 1.88% 1.88% 1.88% 1.88%

Min S-E earnings >claim benefit 6,888 6,820 6,645 6,515 6,342

Self-Emp E.I. Clawback threshold 64,125 63,500 61,875 60,750 59,250



PAYROLL STATS & Retail Closing Days NS 2016 (check your own province) 6

HOLIDAY 6 PAID STATS in NS for EMPLOYEES

DESIGNATED RETAIL CLOSING DAYS in NS

New Years’ Day January 1, 2016 January 1, 2016

NS Heritage Day February 15, 2016 February 15, 2016

Good Friday March 25, 2016 March 25, 2016

Easter Sunday March 27, 2016

Easter Monday

Victoria Day (May)

Canada Day July 1, 2016 July 1, 2016

Natal Day (Aug 1)

Labour Day September 5, 2016 September 5, 2016

Thanksgiving Day October 10, 2016

Remembrance Day Some employees Entitled to benefit

Christmas Day December 25, 2016 December 25, 2016

Boxing Day December 26, 2016

REMEMBRANCE DAY IN NOVA SCOTIA NOVEMBER 11th

http://novascotia.ca/lae/employmentrights/remembrance.asp

NOT A DESIGNATED CLOSING DAY FOR ALL. NOT A PAID STATUTORY.

1. Remembrance Day must be observed

2. Most grocery stores, malls, big box stores must close

3. Employees who work Nov 11 may be entitled to another day off if not

exempt: farm, fish, tree harvesting, mines, factories, construction, call centre.

http://novascotia.ca/lae/employmentrights/remembrance.asp



PAYROLL EMPLOYER PAID BENEFITS—CRA 4130

7

CRA Taxable Benefit Guide 4130 charts list EMPLOYER PAID BENEFITS like: cars; board; gifts & awards; group term life insurance; Interest free or low interest loans (page 33); meals; security options; tools; transit ; tuition.

Taxable Benefits include CPP deductions, sometimes EI or G-HST. DEFINITIONS DEPEND ON YOUR INSURER—CHECK WITH THEM FIRST! 1. Group life + Dependent life + Accident + Critical illness 2. Non-Group insurance plan that is custom made for an (executive) employee like private facility is taxable. Annual fee is taxable. ASK YOUR BOSS FOR NON-TAXABLE BENEFITS INSTEAD OF A RAISE! 1. Employer paid STD short term disability or LTD long term disability. Benefits collected in future are taxable income on T1.(Page 26) 2. Employee pd medical & dental in T4 Box 85 can be expensed on T1. 3. Group Term Insurance—but tricky so check with insurer first! 4. Tax Free Car Allowance using detail KM Log Book (See page 37) 5. Directors Allowance only if to travel to a directors meeting 6. Professional and Union Dues. BUT Fees paid to join a professional order are a taxable benefit to employee 7. Tuition and Training Costs is non taxable if the principal beneficiary is the employer. This includes courses including associated meals, travel etc and leads to as diploma to maintain or upgrade the employer-related skills. It also includes business related training such as stress management. Costs paid for an employee’s family member may not be taxable to employee if it can be considered a SCHOLARSHIP RECEIVED BY FAMILY MEMBER. 8. Parking Costs: taxable benefit when cost can be calculated. Non tax-able when can’t determine FMV like public lot 1st come 1st serve. If required to use own car 3 or more days a week then not taxed benefit. 9. Overtime Payments: A meal allowance NT if overtime was 2hours plus and was expected by employer. Reasonable. Occasional. 10. SOCIAL EVENTS: Dinner for ALL employees if not > $100.



Accounting 2016 Sage 50 Sales Tax Codes SETUP in NS

Charities, Non Profits & Business Meals only take 50% of 15% HST = 7.5%

Code When NS sells/delivers a product or service to another province, charge 5% GST or 13% HST to ON. ATL CAN HST: 15% to NL & NB on July 1, 15% to PE starts Oct 1/16

Tax Status Rate Incl Ref

0 Exempt—but in Line 101 HST Exempt

G GST ONLY: AB ,NT, NU,YT (and books in NS)

GST Taxable 5 N Y

HST All Atlantic Canada + Ontario

13 ON HST Taxable 13 N Y

15 All Atlantic Canada for Sales. NB NL start July 1 (were 13%) PE starts Oct 1 (was 14%)

HST Taxable 15 N Y

HI HST 15% included (purchases) HST Taxable 15 Y Y

PST Combination Sales Taxes

BC PST 7% + GST 5% Apr. 1/13 GST Taxable 5 N y

MB PST 8% + GST 5% GST Taxable 5 N Y

QC QST 9.975 + GST 5% GST Taxable 5 N Y

SK PST 5% + GST 5% GST Taxable 5 N Y

8

Tax Exempt? Taxable? Report on Taxes? GL HST ITC GL HST on Sales Tax ID

NR No No No

Code Tax Status Rate Included Refundable

M-Meals or HST Taxable 7.5 Yes Yes

C-Charity NR Taxable 7.5 Yes No

Invoice shows 15%. but don’t worry– report shows 50% ITC taken. FOR-PROFIT YE ENTRY: 50% meal not deductible



CONTRACTOR—PSB, T5018, T1204 9

PSB—Personal Service Business Restrictions! Fed tax 28% not 15% 2016 Federal budget proposes Fed T2 rate for PSB to increase to 33%! Aimed at highly paid athletes, oil rig consultants, and IT experts who have one “client” and are officer of the company and sole employee. CRA perceives this individual as an “incorporated employee” and there-fore should be a self-employed independent contractor. If corporation employs more than 5 full-time (arms length) employees throughout the year, or provides services to an associated corporation, it will probably not be considered a PSB. Restrictions: The only expenses allowed are salary, benefits, allowances to the incorporated employee, the amount of selling of property, and legal expenses to collect ac-counts receivable. No office rent, supplies or advertising. Oct 31, 2012– No more T2 Small Biz Deduction. COURT CASES WHO LOST AT www.taxtips.ca IT-73R6 Sm Biz Ded IT-168R3 Athletes

T1204 and T5018 are information only slips. Income should already be claimed on your T2125 self-employed tax form. T1204 slip is total contract payments a govt organization made to the contractor for services in a calendar year, T5018 Statement of Contract Payments for Construction must be filed within 6 months of year end if the total of all pay-ments (not including HST ITC taken) to a contractor was more than $500 or you deducted tax. Need:

Name of the Contractor or Company

Current address

SIN /BN of the contractor. E-FILE T5018 INSIDE Sage 50 Call Diana for Sage 50 Tech support 902-895-6074. ($60./hr)

http://www.taxtips.ca



Accounting Corporate Governance - BCP & DR

10

Corporate Governance requires the creation of and the

adherence to a logistical plan that ensures that an organization's

critical functions are maintained or restored in the event of a

disruption such as :

* computer Trojan virus * theft and/or sabotage * fires or natural disasters * power grid down for weeks or longer * terrorism

Plan, Document, purchase all supplies BEFORE A CRISIS:

* business impact analysis * organizational issues * escalation management for when Senior Manager has to

leave to take on higher duties, another must be capable * Business Continuity Plan—renew annually. ALL know! * Disaster Readiness Plan taught to ALL and supply ready.

* RESEARCH AND FIND BEST SUITED SUPPLIERS NOW!

Www.72hours.ca, Vancouver BC

waterproof knapsack for home, car, schools, day cares, hikers, offices industries, all public buildings. COAST GUARD SURVIVAL BARS & WATER PAKS. First aid, Food paks and Buckets, tents, blankets, ponchos, Swiss army knife, food buckets, SOLAR LIGHTS & SHORT WAVE RADIOS. Www.filterup.ca: Vancouver BC Saychelle Extreme water bottles filter 99.9% including ZIKA virus, radiation. pH Alkaline water pitcher also filters 99,9% Www.enviroharvest.ca: Port Hope ON Off grid appliances,. Solar Propane generators —everything off grid! Www.canadianvitaminshop.ca: Victoria BC “Beyond Silver” liquid and gel. A natural antibiotic better than colloidal.

Nano Silver alternative to antibiotics not sold in Canada!!!!! Liquid (drink/spray), gel, bar soap, shampoo, lotion, tooth paste, cough drops

www.silversolutionusa.com and/or www.JimBakkerShow.com

http://Www.72hours.ca

http://Www.filterup.ca

http://Www.enviroharvest.ca

http://Www.canadianvitaminshop.ca

http://www.silversolution.com

http://www.JimBakkerShow.com



go-bag CHECKLIST CAR, HOME, WORK, SCHOOL

11

√

SEAL everything in NEW double zipper Ziploc BAGS WATERPROOF sturdy BACKPAKS (72hours.ca)

1 24 Hi-Energy Bars from Health Store sealed in bag

2 16 Drinking water 125ml paks (72hours.ca) in bag

3 2-3 DATREX Ration Paks food (72Hours.ca) in bag

4 Paks of NON SALTED peanuts and gum

5 2 Silk Almond drink travel paks - replace when dated

6 4 tins with keys: Hereford corned beef, sardines

7 6 paks Hiker meals by Mountain House (72hours.ca)

8 20 @ $5 = $100 cash in bag. Quarters for phone

9 Copy of Drivers License, Health Insurance

10 Copy of Birth Certificate (Marriage)

11 Copy of Prescriptions, medical history

12 PHOTOS of family. List Contacts

13 Copy of mortgage, prop tax, BANK STMT, Rental Lease

14 Copy of car & home & business insurance policies

15 Copy of Power bill that proves your home address

16 SOLAR Lamp-radio-recharger $60 at 72hours.ca

17 1 flashlight per person—extra batteries in bag

18 Multi tool knife with can opener (72hours.ca)

19 EXTRA KEYS TO CAR AND HOUSE

20 Local map, whistle, fluorescent , work gloves

21 Quality Surgical masks—dust, plague (72hours.ca)

22 First Aid Kit (72hours.ca) and surgical gloves

23 Pad, pencils, marker, calendar, DUCT TAPE

24 Tent-tarp, poncho, blanket (72 hours.ca)

25 Extra clothes, boots, shoes, scarf, hat, glasses

https://www.google.ca/imgres?imgurl=http%3A%2F%2Fthumbs1.ebaystatic.com%2Fd%2Fl225%2Fm%2FmrlR06SSHV10E7htFzPmdzA.jpg&imgrefurl=http%3A%2F%2Fwww.ebay.co.uk%2Fbhp%2Fdocument-holder&docid=__E-Oq3M2-O25M&tbnid=IRZw_hCrOC94bM%3A&vet=1&w=225&h=225&bih=1135&biw



T4A - STUDY CRA RC-4519 Disclaimer-for educational use only-see a professional

Short list on who needs a T4A for past calendar year: T4A Summary in Sage 50. Efile via www.TaxCycle.com

Non-employee help paid $500 or more, Employee deducted income tax, Box 20: Self-Employed but no invoice given Box 48: Fees for Services—any help, labour Trustee, Estate executor (or liquidator) administrator, Corporate director, superannuation, lumpsum payments, Annuities, patronage allocations, RESP accumulated income payments more than $50. Research grants, death benefits, Certain payments under a wage-loss replacement plan, Certain benefits paid to partnerships or shareholders.

EMPLOYER-PAID—Taxable + Pensionable but not Insurable

T4 Box 40 is in Box 14: Employee, Maternity, On Leave T4A Box 119: Former or Retired Employee Group Life (not Group Term), Dependant life insurance, Accident Insurance Critical illness insurance.

In Quebec, health & dental insurance is a taxable benefit. Exempt when paid by employer. Taxable on T1 when claimed: STD-Short Term Disability and LTD-Long Term Disability. But a non-group plan (exec gets private facility) annual fee is taxed. NO T4A: Construction subcontractors get a T5018 slip instead, and income paid from a life income fund (LIF) gets a T4RIF instead, and amounts paid for management fees, director’s fees, tips, group term life insurance premiums paid for current employees go on a T4. http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/bnfts/hlth/grp-eng.html

12

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/bnfts/hlth/grp-eng.html



COURSES Cutting Edge Skills for Experienced Sage 50 Cad Users

13

Similar to course taught at CPA NB Professional Development

Conference Fredericton October 12, 2016 Running from Nov 21/16 through to Feb 2/17 (efile season)

Includes:

Professional Completion Certificate

Sage50-2017 Training Guide and The Tax Factor

Coffee break

Some Topics in Manual (70 pg)

What’s New in Sage 50 CAD 2016.3 and 2017

Mastering Inventory & Services, Year End Adj

Audit-proof payroll, T4, T4A, T5018, Aboriginal

EFT Direct integration,

Charity/NPO Receipts by www.businnovatech.com

Process & Compliance Management

Sage Drive. Sage One <> Sage 50. Sage Live

Diana’s 30+ Tips & Tricks!

Budgets, Allocations, Year End Reports

VENUE: SageHub 20 Willow St Truro

FEE: $200 + H=$230 (just $28.50/h) 50% discount if organize group of 4 TIMES: Thursdays 8:30am-4:30pm or

3 evenings 6-8:30pm Mon Tue Wed

REGISTER: Pay 5 days before start. BOOK: (902) 895-6074 or e-mail [email protected]

OR:

CONFIDENTIAL TRAINING

USING YOUR OWN DATABASE

$60/hr Maritimes $100/hr rest of Canada

Bring your laptop with DB here or for $1.25/km I travel to your office.

Mon Tue Wed Evenings 6:00pm-8:30pm Coffee Break

THURSDAYS 8:30am—Noon 1:00—4:30pm 2 Coffee Breaks

Nov 21, 22, 23 Nov 24

Nov 28, 29, 30 Dec 1

Dec 5,6,7 Dec 8

Dec 12, 13, 14 Dec 15

Dec 19, 20, 21 Dec 22

Dec 26, 27, 28 Dec 29

Jan 2,3,4, 2017 Jan 5

Jan 9, 10, 11 Jan 12

Jan 16, 17, 18 Jan 19

Jan 23, 24, 25 Jan 26

Jan 30, 31, Feb 1 Feb 2

mailto:[email protected]



COURSES—Registration Four Aces 1, 2, 3 and/or 4 days

14

Bring your own laptop. Includes: Binder, 2 Breaks, and Professional Completion Certificate Not Refundable but transfer to a friend or the credit will be applied to your account up to 6 months including for service s in tax preparation, financial coaching, support.

~2016~ Prices subject to change without notice

# staff

TOTAL

Spades Sage 50 Groundwork Mon. Installation, DB Design

200.00

Clubs Sage 50 Cash In, Taxes Tue. Sage 50 Cash Out, Bank

200.00

Hearts Sage 50 Payroll Wed.

200.00

Diamonds Sage 50 Inventory Thu. Management Reports

200.00

PREPAY 5 business days before course starts. In emergency a credit is given for 6 months. Group Organizer 1/2 price . Sub-total:

Add 15% HST

Pay by Visa, MC, or Online interac

4 ACES to Master Sage 50 Cdn 2017

Email: [email protected]

Tel: 902-895-6074 Fax 902-895-3038

Min 4. $25 Referral Fee.

Organizer of a class of 4 gets 50% off

(Sage U. Hands-on-Labs twice the price $400/d)



4 ACES to Master Sage 50 and Reports for Bank & CRA©

SPADES Day 1:

Database Design Groundwork, Blueprints, Architecture

Join virtually with webcam & mic!

7 hrs: 9am—12 12:30-4:30pm only $200.00!

(Sage U Hands on Lab fee: $400 per day)

Included: Binder with Summaries, 2 Coffee Breaks

Day 1 Sage 50-Database Architecture & Design! Installation of Sage 50 Cdn 2017. Bring your laptop... http://www.sage.com/ca/sage-50-accounting/try (Trial) Design Chart. Historical Trial Balance Computerized Balance Sheet, Income Stmt, Journal Analyse and post all sub-ledgers: Historical Accounts Receivable & Payables Simple Payroll and Inventory. Details on Days 3 & 4

15

COURSES - Ace of Spades Monday: Groundwork-installation

15

To order your own Sage University Study Guide (no more Level 1 & 2):

Sage 50 CAD 2016.2 revised Feb 9, 2016 is 802 pages

$105 USD is approx. $143 CAD + shipping + taxes.

https://marketplace.mimeo.com/sagecanadapublic#name=13

http://www.sage.com/ca/sage-50-accounting/try

https://marketplace.mimeo.com/sagecanadapublic#name=13



COURSES—Ace of Clubs Tuesday: Clients, Vendors


CLUBS Day 2: Clients, Vendors,

Sales Tax, Bank Rec


7 hr : 9 am—12 12:30-4:30—only $200.00!

(Sage U Hands on Lab fee $400/)

Binder with Help Sheets, CRA Guides & IT Bulletins 2 Refreshment Breaks with Coffee/Teas, Baking

Setup Sales Taxes for all provinces

Setup Services

Setup Clients & Vendors

Accounts Receivable and Accounts Payable

Sales and Purchases

Sales Quotes & Purchase Quotes

Sales Orders (Contracts) & Purchase Orders

Extensive exercise for Receivables

Extensive exercise for Payables

Reverse (void) a sale or a purchase

Adjust a sale or a purchase

Cash & Chqs to be deposited

“Visa Receivable” to Bank account

Reconcile Bank & Credit Cards Payable

EFILE GST-HST REPORTS, pay online

Auto pay with Beanstream, EFT Direct, Sage Payments

16

GST

HST



COURSES - Ace of Hearts Wednesday: PAYROLL


ACE OF HEARTS Day 3: Payroll


7 hr: 9 am—12 12:30-4:30-only $200.00!

(Sage U Hands on Lab fee: $400/day)


Payroll T4 reporting is calendar Jan 1—Dec 31 Examine carry forwards from Dec 31-not there in Jan 1 Check for Vacation Payable Examine all TD1 and TD1NS Ensure signed & accurate SIN, DoB, Name Setup employees Hands on Exercise covers all regular payroll ROE, E-filing T4 and T4 Summary, E-filing T4A Reporting, paper file How to answer PIER requests Time & Billing linking with Payroll Direct Deposits with EFT and Beanstream

17



COURSES - Ace of Diamonds

Thursday: Inventory, Management reports


DIAMONDS Day 4:

Inventory & Management


7 hrs: 9 am—12 12:30-4:30 only $200.00! (Sage U

Hands on Lab fee: $400/day)


Inventory Plan naming format Make an Item ID list Inventory setup Locations, Categories, Price Lists Bill of Materials Multi-currency Corporate Governance: Assurance Policies: Data Security, Privacy, Living Disaster Recovery and Business Continuity Planning Internal Controls, Understanding Financial Statements Management Reports: Gross Margin Cash flow, Budgets Comparisons Forecast for 5 years

18



COURSES Manual Bookkeeping—Entrepreneurs to Professionals

19

1 Transactions and The Balance Sheet ACCOUNTING EQUATION

Start a Business—Type Assets, Liabilities, Equity Changes & relationships

2 Income P&L Statements Revenues & Expenses Transactions

3 Manual Bookkeeping Debits & Credits, T-Accounts

4 Manual Journals General, Sales, Purchases

5 Manual Ledgers & Sub ledgers General, Acc. Receivable Acc. Payable

6 Manual Trial Balance

7 Manual G-HST Sales Tax G-HST Collected G-HST Paid in Purchases Annual Remittance

8 Manual Income Statement

9 Manual Balance Sheet

10 Manual Cash Flow Statement

Bookkeeping for Entrepreneurs ©2009 is a lecture style one day foundational course. It does NOT include payroll, inventory, foreign currency, budgets, or departments which are in the computerized Sage 50 CAD courses described on Pages 9 to 14. Cost is only $250 including a unique colour-coded manual + 2 refreshment breaks. In 20 Willow St Classroom—Min 4 students.

Simply Financials-Bookkeeping Basics, Compliance, Reporting ©

FIVE DAY course for $1000 + HST designed for bookkeepers

who want to go in business for themselves and need to fully

understand manual bookkeeping in order be able to write a

designating exam such as CPB - Certified Professional

Bookkeeper offered by www.IPBC.ca, which will qualify for errors

and omissions insurance. Includes corporate governance.



FOR EFILERS ONLY (updates will be added) 20

MUST COMPLY TO www.cra.gc.ca/efile YOU MUST COMPLETE AND HAVE SIGNED BY CLIENT a T183 EFILE Form for each T1 transmitted. REMINDER: Continue to use your current password or your new one to transmit T1013 and T1135 forms, transmit T2 returns, and transmit 2012, 2013, 2014 and 2015—until January 20, 2017, Then systems have to convert to new tax season for T1-2016.

NEW FOR 2017! T1-2016 personal taxes: 1. AUTO FILL MY RETURN ENHANCEMENTS.

a. Longer login sessions b. More information slips c. AFR for prior year returns d. CDE improvements

2. ACCELERATED NOTICE OF ASSESSMENT NOA will be delivered directly into tax

preparation software

3. ReFILE Allowing you to make adjustments directly to client return using your tax software 4. VIEW EVENTS The system will notify efiler when tax return has been assessed or reassessed with changes

http://www.cra.gc.ca/efile



TAX TIPS FOR T1-2015 (Personal) 21

Form Line Guide Tax Item

1 T777 229 T4044 Employment Expenses Employer must fill out completely and sign. Must have supporting receipts and KM Log book

2 S1 319 Gen 5000

Student Loan Interest If graduated/left school and paying off student loans—not private loans or LoC. Must have Letter

3 S1 364 Gen 5000

Public Transit Passes Monthly passes are easy to claim. Shorter periods good if 5 consecutive days, and at least 20 days in any 28 day period. Keep receipts

4 S1 219 Gen 5000 & Info on T1-M

Moving Expenses (page 25) If you move 40 km or more for work or school. General Moving, transportation, stor-age costs. Temporary accommoda-tions, meals and cost of cancelling a lease or selling your old home. Legal costs in buying a new home only if you sold your home.

5 S1 330

RC 4065

Medical Expenses Km rate for > 40 km each way (Page 23). Use T4 Box 85 PROVINCIALLY REGULATED ONLY.

In NS, insurance pays for massage therapy but cannot expense on T1.

6 S1 331 RC 4065

Allowable for dependents you paid for. Child 1997 or <. Need their income.

7 S1 USA exempt but post income 156/128 + deduction 230/220

P102 Gen 5000

Separated change Marital Status. Common-Law must be 90 days. GST & CCB depend on income so Form RC65. Child support not income or deduction but periodic spousal support is by Court or a written agreement.



{DRAFT} WHAT’S NEW T1-2016 Provincial info at www.TaxTips.ca

22

New Tax Item for T1-2016

Date it takes Effect

Short Description

1 Sell Principal Residence.

Jan. 1, 2016

Now report all info on Schedule 3 DETAILS ON PAGE 24

2 Child Fitness

Eliminated 2017

Half limit now: $500 not $1000

3 Arts Amount Eliminated 2017

Half limit now: $250 not $500

4 Canada Child Benefit

July 2016

Non taxable based on family income and # of children.

5 Family Tax Cut

Eliminated 2016

Not replaced

6 Education & Text Books

Eliminated 2017

Tuition Amount on T2202 same and no impact on carry forwards

7 Eligible Educator School Supply Tax Credit

Jan 1, 2016

15% NRTC on $1000 purchases (not from home) = $150 cash. Www.budget.gc.ca

8 Northern Residence De-duction

Will increase

9

10

11

12

13

14

http://www.taxTips.ca

http://www.taxtips.ca

http://Www.budget.gc.ca



MEDICAL & MOVING KM TRAVEL RATE

23

PROV ¢ / km 2016

Meals 2016

¢ / km 2015

Meals 2015

¢ / km 2014

Meals 2014

ALL 17ea 51/d

17ea 51/d

AB 44.5 45.5

BC 48.5 49.5

MB 47.0 48.5

NB 49.0 51.0

NL 52.0 53.5

NT 61.5 63.0

NS 49.5 51.5

NU 61.0 61.0

ON 55.0 57.5

PE 48.5 50.5

SK 46.5 47.5

YU 60.5 64.0

Annual Km & Meal Rate is announced by Federal Dept. of Finance before Christmas holidays

CRA posts their lists for eligible and non-eligible medical expenses in MEDICAL EXP GUIDE RC4065 http://www.cra-arc.gc.ca/medical/ CHECK YOUR PROVINCIAL WEBSITE. For example, Massage Therapy is not allowed in NS but OK in NL.

http://www.cra-arc.gc.ca/medical/



CCA-DEPRECIATION Hire a professional for Application

Class % ½ yr COMMON FIXED ASSET CLASSES & RATES

1 4 Y Most Buildings after 1987

1 10 Y After March 18/07-manufacturing buildings

2 6 Y Piping

3 5 Y Buildings 1978-1987. Later additions CL 1, dock, wharf

6 10 Y Building no footings, portable, frame, log, pond, corrugated

metal. greenhouse, fence, dyke, grain storage, watertower

7 15 Y Boats, Canoes, rowboats, vessels. motors

8 Drawn

20 Y > $500 Equipment & Furniture, copier, phone, sign, bee equip,

fruit-veggie storage, combine-drawn, digger, disc, drill, genera-

tor grain drying equip-loader, silo, sprayer (Cl.12 if > $500)

10 Self

propel

30 Y Personal cars (not taxis), trucks, tractors, chainsaws, wagons,

trailers. chainsaw, combine self-propelled, harvester, balers,

computer systems hardware before Mar 23/04

10.1 30 Y After 2000, cars costing over $30,000 + taxes

Each car to have a separate class. No term. loss allowed

12 100 NO < $500 small tools, kitchen utensils, medical—dental instru-

ments, china, linen, uniforms

12 100 Y < $500 computer (not systems) software, linen, dies, moulds

16 40 Y Taxis, car rentals, coin op video, freight trucks

17 8 Y Roads, parking lots, storage areas

22 50 Y Excavating, moving equip before 1988

29 Str. ln Y Cl ass 43 bought March 18/07-Dec 31/15. 25%, 50%, 25%

33 15 Y Timber Resource Property

38 30 Y Excavating, moving equip after 1987

43 30 Y Mfg. equip & mach. For separate classes write CRA letter

43.1 30 Y Windmill, some solar –need a tax expert, authorization

46 30% Y Data network infrastructure equip after Mar 22/04 (not 8)

*50 55 Y Computer, gen electronic, sys software after Mar 18/07

24



MOVING EXPENSE Form T1-M

25

Line 219 - Expenses you can deduct

You must first determine if you qualify to deduct moving expenses, either as an individual who is employed or self-employed or as a full-time student. If you qualify, you can claim reasonable amounts that you paid for moving yourself, your family, and your household effects. Not all members of your household have to travel together or at the same time.

Eligible moving expenses

Transportation & storage costs (packing, hauling, movers, in-transit storage, and insurance) for household effects, including boats and trailers.

Travel expenses: vehicle expenses, meals, and accommodation to move you and members of your household to your new residence. You can choose to claim vehicle and/or meal expenses using detailed or simplified method (see page 22).

Temporary living expenses for up to a maximum of 15 days for meals and temporary accommodation near the old and the new residence for you and mem-bers of your household. You can choose to claim meal expenses using the de-tailed or simplified method. If you choose the simplified method, although you do not have to submit detailed receipts for actual expenses, we may still ask you to provide some documentation to establish the duration of the temporary lodging.

Cost of cancelling a lease for your old residence, except any rental payment for the period during which you occupied the residence.

Incidental costs related to your move which include the following:

changing your address on legal documents;

replacing driving licenses and non-comm vehicle permits (not insurance);

utility hook-ups and disconnections.

Cost to maintain your old residence (max $5,000) when it was vacant after you moved, and during a period when reasonable efforts were made to sell the home. It includes the following:

interest;

property taxes;

insurance premiums; and

cost of heating and utilities expenses. (BUT NO RENTAL INCOME)

Cost of purchasing your new residence if you or your spouse or common-law partner sold your old residence as a result of your move. Includes legal or notary fees and taxes paid for transfer of title but NOT G-HST or property taxes.

Cost of selling your old residence, including advertising, notary or legal fees, real estate commission, and mortgage penalty when the mortgage is paid off before maturity.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/219/slf-eng.html

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/219/stdnt-eng.html

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/219/xpnss-eng.html#Detailed

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/219/xpnss-eng.html#Simplified







INSURANCES DISABILITY (see www.taxtips.ca)

26

If you receive disability insurance, it will be tax-free if you and all other employ-ees in the plan have paid for the insurance, or if the insurance costs for all em-ployees was paid by the employer, and included in the taxable income of each employee. If the employer pays for all or part of the insurance and does not in-clude the insurance cost in the taxable income for all employees, then disability insurance received will be taxable, net of any premiums paid into the plan by the employee after 1967. The following is a quote from the Canada Revenue Agency bulletin IT-428 Wage Loss Replacement Plans:

Where an employee-pay-all plan exists and provides for the employer to pay the employee's premiums to the plan and to account for them in the manner of wages or salary, the result is as though the premiums had been withheld from the em-ployee's wages or salary.

Disability insurance costs are not tax deductible for employees. If you are self-employed, the cost is tax deductible. Excerpts from IT-428 Wage Loss Replacement Plans:

14. For benefits received by an employee under a wage loss replacement plan to be subject to tax in his hands under paragraph 6(1)(f), the plan must be one to which the em-ployer has made a contribution out of his own funds. An employer does not make such a contribution to a plan if he merely deducts an amount from an employee's gross salary or wages and remits the amount on the employee's behalf to an insurer. In these circumstanc-es, the employee's remuneration for tax purposes is not reduced by the amount withheld and remitted by the employer to the insurer.

17. It is a question of fact whether or not an employee-pay-all plan exists. An employer cannot change the tax status of a plan by adding at year end to employees' income the employer contributions to a wage loss replacement plan that would normally be considered to be non-taxable benefits. Where an employee-pay-all plan exists and provides for the employer to pay the employee's premiums to the plan and to account for them in the man-ner of wages or salary, the result is as though the premiums had been withheld from the employee's wages or salary.

If you are collecting benefits under a disability insurance plan, when the benefits are tax-free, you will not receive a T4A. If you have paid a portion of the premiums, the T4A you receive will be for the gross amount of the benefits received, but you can deduct your con-tributions to the plan. Instead of entering the T4A amount from box 107 on Line 104 of your tax return, you would enter the net amount after deducting contributions you made to the plan after 1967, if you did not use them on a previous year's return.

http://www.taxtips.ca/glossary/taxableincome.htm

http://www.cra-arc.gc.ca/E/pub/tp/it428/README.html



INSURANCES Private Health Services Plans

27

Study details on www.taxtips.ca and ask insurance companies for the details before implementing!

A business may deduct private health services plan (PHSP) pay-ments made on behalf of employees and their dependents. These payments are not taxable to the employees, and there are no CPP or EI premiums charged on these payments.

If employees pay a portion of the PHSP premiums, this qualifies as a medical expense of the employee for purposes of the medical expense tax credit.

Payments made by a PHSP to an employee must only be for reim-bursement of expenses which would qualify as medical expenses under the Income Tax Act. These expenses include prescriptions, medical, dental, vision care and hospital expenses.

Both incorporated and self-employed proprietors/partnerships can have PHSPs, but there are different restrictions on each. NOT FOR NON-WORKING SHAREHOLDER.

A Sole Shareholder Sole Employee does NOT QUALIFY.

SOLE PROPRIETORS in ACTIVE biz under ITA S. 20.01 can ex-pense and biz income is 50% or more of all income in year. Other income cannot exceed $10,000. Many other rules so study first!

A Health Services Spending Account may qualify as a PHSP if it meets the criteria set out in IT-339 (see links at bottom). See IT-529 below for more information on Health Services Spending Ac-counts and other flexible employee benefit programs.

There must be a document which outlines the coverage for employ-ees under the PHSP. If there are no limitations to the coverage, the plan will be unlikely to qualify as a PHSP. In this document, the corporation can set different annual limits for PHSP benefits provid-ed to different employee groups in the company



Change in use of Residence 28

Copied from www.taxtips.ca and all links go to that website Deemed Disposition When there is a change in use of real estate, either from income-producing to personal-use (e.g., principal residence or cottage/second home), or from personal-use to income-producing, there is a deemed disposition. (deemed to have disposed of the land & build-ing) and to have immediately reacquired it, with both transactions done at FMV.)

Change in Use From Income-Producing to Personal-Use When the property use changes completely or partially from income-producing to personal use, the deemed disposition can result in a capital gain. This is calculated by deducting the adjusted cost base of the property from the fair market value at the time of change in use. Where only a part of the property has changed use (duplex, fourplex, basement suite, etc.), then there will be a deemed disposition only for that portion of the property.

When there is a capital gain, under certain circumstances the gain can be deferred by mak-ing an election under subsection 45(3) of the Income Tax Act. The election may not be made if capital cost allowance (CCA) has been claimed on the property for any taxation year ending after 1984. If any CCA was claimed prior to 1985, this may result in a recapture of that CCA. To make the election, a letter should be filed with tax return for the year in which the property is eventually sold (or earlier if demanded by CRA). Further information on this election can be found in CRA Guide T4037 Capital Gains.

Change in Use From Personal-Use to Income-Producing When the property use changes from personal-use to income-producing , the deemed disposition can result in a capital gain. This is calculated by deducting the adjusted cost base of the property from the FMV at the time of change in use. The FMV at the time of change in use is the new adjusted cost base of the income-producing property. Note that if the property is not located in Canada, and the new adjusted cost base is over $100,000 in Canadian dollars, there will be a requirement to complete form T1135 foreign income veri-fication statement each year in the future while the property is owned.

Any gain resulting from this deemed disposition may be eliminated by the principal resi-dence exemption (PRE) if the property has always been the taxpayer's principal resi-dence. If the property has been the principal residence for only a portion of the time it has been owned, then the gain could still be partially eliminated by the principal residence exemption.

*WHY FORCED REPORTING OF SALE OF PRINCIPAL RESIDENCE? To close the loophole used by foreign buyers which has created unreal red hot real estate markets. Capital Gain Exemption will only be allowed if reported in year of sale. REPORT: Date of acquisition, Proceeds of Disposition, Description of Property . T2091 / T1255 still used for designation if property not principal residence all the years you owned it.

http://www.taxtips.ca/glossary.htm#DeemedDisposition

http://www.taxtips.ca/filing/capitalgain.htm

http://www.taxtips.ca/glossary/adjustedcostbase.htm

http://www.taxtips.ca/smallbusiness/ccarates.htm

http://www.taxtips.ca/glossary/recapture.htm

http://www.cra-arc.gc.ca/E/pub/tg/t4037/README.html



http://www.taxtips.ca/filing/capitalgain.htm



http://www.taxtips.ca/filing/foreign-asset-reporting.htm

http://www.taxtips.ca/filing/foreign-asset-reporting.htm



MP, DB, RRSP, DPSP, YMPE, TSFA Pension & income Splitting

29

YEAR MP Limit

DB Limit

RRSP Limit

DPSP limit 1/2 MP

YMPE Limit

TSFA Limit

2018 1/9 MP limit 26230

2017 26230 2914.44 26010 13115 55300

2016 26010 2890.00 25370 13005 54900 5500

2015 25370 2818.99 24930 12685 53600 10000

2014 24930 2770.00 24270 12465 52500 5500

2013 24270 2696.67 23820 12135 51100 5500

2012 23820 2646.67 22970 11910 50100 5000

2011 22970 2552.22 22450 11485 48300 5000

2010 22450 2494.44 22000 11225 47200 5000

2009 22000 2444.44 21000 11000 46300 5000

Type of Pension 65 or Older Under 65

Pension Annuity Payments Y Y

RRIF Payments Y N

RRSP Annuity Payments Y N (except death by spouse)

RRSP Lump-Sum WD N N (except death by spouse)

CPP Benefits N N

OAS Benefits N N

Spouse with minor children (max $50,000)

Y Y

MP: Annual Money Purchase DB: Defined Benefit RRSP: Registered Retired Savings Plan DPSP: Deferred Profit Sharing Plan YMPE: This Years Maximum Pensionable Earnings (also pg 5) TSFA: Tax Free Savings Account

PENSION & INCOME SPLITTING WITH SPOUSES (since 2007)



T1-2016 PERSONAL RATES 30

Fed Tax 2016 Rate 2016 Federal 2015 Federal Fed Tax 2015 Rate

15.00 First $45,282 First $44,701 15.00

20.50 $45,282 > $90,563 $44,702-$89,401 22.00

26.00 $90,563 > $140,388 $89,402-$138,586 26.00

29.00 $140,388 > $200,000 $138,587 and over 29.00

33.00 Over $200,000

Lifetime Capital Gain Exemption

$824,176 $813,600

NS Tax Brackets NS-2016 Taxable NS-2017 Taxable NS-2015 Taxable

08.79 First $29,590 First $29,590 First $29,590

14.95 $29,591—$59,180 $29,591—$59,180 $29,591—$59,180

16.67 $59,181—$93,000 $59,181—$93,000 $59,181—$93,000

17.5 $93,001—$150,000 $93,001—$150,000 $93,001—$150,000

21.00 Over $150,000 Over $150,000 Over $150,000

2016 Fed + NS 2016 Marginal Tax Rates

COMBINED Other Income Capital Gains Eligible Dividend Non-Eligible Div

First $29,590 23.79 11.90 -0.11 11.62

$29,591—$45,282 29.95 14.98 8.39 18.83

$45,282-59,180 35.45 17.73 15.98 25.27

$59,181-90,563 37.17 18.59 18.35 27.28

90,564-93,000 42.67 21.34 25.94 33.71

$93,001-140,388 43.50 21.75 27.09 34.68

140,389-150,000 46.50 23.25 31.23 38.19

$150,001-200,000 50.00 25.00 36.06 42.29

Over $200,000 54.00 27.00 41.58 46.97

OAS CLAWBACK OAS Benefit Start @15% if > MAX annual income to receive

2015 $6,786.90 $72,809

2016 6878.82 73,756 $119,615



T2 2015-16 CORPORATE RATES 31

T2 Active Business Income Non—Active

2016 General % Sm Biz CCPC % Biz Limit Investment %

Fed 15 10.5 $500,000 38.7

AB 12 3 $500,000 12

BC 11 2.5 $500,000 11

MB 12 9 $450,000 12

NB 12/14 4 $500,000 12 / 14

NL 15 3 $500,000 15

NS 16 3 $350,000 16

NT 11.5 4 $500,000 11.5

NU 12 4 $500,000 12

ON 11.5 4.5 $500,000 11.5

PE 16 4.5 $500,000 16

SK 12 2 $500,000 12

YU 15 3 $500,000 15

T2 Active Business Income Non—Active

2015 General % Sm Biz CCPC % Biz Limit Investment %

Fed 15 11 $500,000 34.7

AB 10 3 $500,000 10

BC 11 2.5 $500,000 11

MB 12 0 $425,000 12

NB 12 4 $500,000 12

NL 14 4 $500,000 14

NS 16 3 $350,000 16

NT 11.5 4 $500,000 11.5

NU 12 4 $500,000 12

ON 11.5 4.5 $500,000 11.5

PE 16 4.5 $500,000 16

SK 12 2 $500,000 12

YU 15 3 $500,000 15



SHAREHOLDER LOANS ITA: S.15(1.2), S.15(2), S.110(1)

32

Copied from www.taxtips.ca. S / L can be complicated so hire a tax professional.

1. ITA S . 15(2)

(a) A loan by a corporation to one of its shareholders, or to a person

or to a partnership not at arm’s length with the shareholder….may

result in a DEEMED TAXABLE BENEFIT TO SHAREHOLDER AND BE

INCLUDED IN INCOME IN THE YEAR THE LOAN WAS MADE.

(b) S.15(2) doesn’t apply if ENTIRE LOAN is REPAID within one year

after the taxation year of the Lender. See IT Bulletin 119R4.

2. ITA S. 80.4(2)

(a) Another benefit deemed to be received by shareholder (or a third

party like spouse) is prescribed interest . The payment of interest must

be made no later than 30 days after year end = Jan 30. Even if the

entire loan is repaid before fiscal year end unpaid interest is a DEEMED

BENEFIT if not pd in 30 days. T4 Box 36. NET of CPP + Inc Tax.

(b) Converting S / L to Employment Income or DIVIDENDS:

Sometimes funds are advanced to a shareholder / employee

throughout the year, and at the end of the year salary or dividends

are paid or recorded to clear the balance of the S / L. A DEEMED

BENEFIT if insufficient interest paid when S / L was outstanding.

TIMING is essential.

SALARY: If a Corp has a Dec 31 YE, then S/L must be cleared by a

NET SALARY in Dec minus Income tax and CPP. PD7A due Jan 15th.

DIVIDENDS: Entry has to be done in Dec before year end date. T5

slip filed no later then Feb 28. Debit Dividends in Capital/RE.

BONUS: If a bonus is accrued for YE but not paid or recorded as pd

it has no effect on O/S S / L. Must be paid within 180 days with NET.

SEE SHAREHOLDER LOAN EXAMPLE NEXT PAGE

http://www.taxtips.ca.



PRESCRIBED INTEREST RATES SHAREHOLDER LOAN EXAMPLE

33

Prescribed Interest Rates

Quarter % Underpaid Arrears Taxes Payroll, GST

% Overpaid Taxes T2 Corp

% Overpaid Taxes T1—Non Corp

% charge on Taxable

Benefits *

Oct 1, 2006 to Dec 31, 2007

9 7 7 5

Jan 1, 2008 to Jun 30, 2008

8 6 6 4

Jul 1, 2008 Dec 31, 2008

7 5 5 3

Jan 1, 2009 to Mar 31, 2009

6 4 4 2

Apr 1, 2009 to Jun 30, 2010

5 3 3 1

Jul 1, 2010 to Sep 30, 2013

5 1 3 1

Oct 1, 2013 to Dec 31, 2013

6 2 4 2

Jan 1, 2004 to Dec 31, 2016

5 1 3 1

Jan 1, 2017 to Mar 31,2017

Shareholder Loan Example:

1. Mr. X is a shareholder of Y CO 2. Jan 1, 2014 he takes a loan of $100,000. 3. no principal repayments or interest payments made in 2014.. 4. If Mr. X repays loan by Dec 2015 then $100,000 not a benefit in 2014 2014 CRA Prescribed Interest: $100,000 x 1% x 365/365 = $1,000 If Mr. X paid $500 interest on Jan 3, 2015 $100,000 x 0.5% x 365/365 = $500 = T4-2014 Box 36 Taxable Benefit of $500 If Mr. X had not paid any interest, then T4-2014 Box 36 = $,1000. If S/L been forgiven then forgiven amt included in shareholder income.



LATE PENALTIES slips & T1

34

FILED LATE Number of information returns (slips) filed late

Penalty per day (up to 100 days)

Maximum penalty

1 to 50 $10 $1,000

51 to 500 $15 $1,500

501 to 2,500 $25 $2,500

2,501 to 10,000 $50 $5,000

10,001 or more $75 $7,500

Penalties for these slips:

RRSP, T10-PAR, T215, T3, T4A-NR, T4A-RCA, T4PS,

T4RIF, T4RSP, T5007, T5008, TFSA.

http://www.cra-arc.gc.ca/penaltyinformationreturns/

FILED LATE Number of information returns (slips) filed late

Penalty per day (up to 100 days)

Maximum penalty

1 to 5 Not based on # days $100 flat

6 to 10 $5 $500

11 to 50 $10 $1,000

51-500 $15 $1,500

501-2500 $25 $2,500

2501-10,000 $50 $5,000

10,001 or more $75 $7,500

Penalties under the relieving administrative policy for:

NR4, T4, T4A, T4E, T5, T5018

EACH SLIP IS AN “INFORMATION RETURN”

http://www.cra-arc.gc.ca/penaltyinformationreturns/



CRA DATES DUE & BN CODES

Business Dates

Quarterly HST for Calendar Year 1Q Jan.1-Mar.31 due Apr 30

2Q Apr.1-Jun.30 due Jul 31

3Q Jul.1-Sep.30 due Oct 31

4Q Oct.1-Dec.31 due Jan 31

Annual HST Return must be prepaid by April 30, filed by June 15 T4, T4A T5 T5018 Returns due Feb 28 RRSP slips due 1st 60 days T3 due March 31 T2 Taxes Payable Due: A) Active operating business 3 months after year end B) Other such as holding companies 2 months after year end T2 Corporate Tax Return Due: 6 months after year end

CRA BN Codes on RC59 Consent Form CRA 1-800-959-5525

RT GST-HST, RP Payroll, RC Corporate Income Tax, RM import/export RD excise duty, RZ > TO NETFILE AND GET ACCESS CODE TO FILE T5, T5007, RRSP, 5013, T5018, TFSA

35

Personal Dates

T1 Personal installments due:

Mar. 15, Jun. 15, Sep. 15, Dec. 15

RRSP Deadlines for 2016: Mar.1, 2017

April 30: (May 1, 2017) *T1 personal last day to file and pay before penalty & interest charged. *Last day for self-employed to pay income tax, CPP, and annual HST Return payable. June 15: T2125 Self-employed tax return and the annual HST return must be filed TSFA Returns due June 30.



AUTO T4 TAXABLE BENEFIT

1. Employee driving company car:

Concerns everywhere you drive that is not 100% assigned by boss is a taxable benefit INCLUDING DRIVING TO AND FROM WORK. even if your boss insists you take car home! ♦ REDUCE TAXABLE BENEFITS BOX 14 on T4 http://www.cra-arc.gc.ca/E/pub/tg/t4044/README.html

T4044 Employment Expenses on T1! Get expert advice CRA ONLINE AUTO TAXABLE BENEFITS CALCULATOR

http://www.cra-arc.gc.ca/ebci/rhac/welcome.do Operating Cost Benefit: (when employer paying all costs) (1) Fixed amount per km of personal use. Two rates depending on a general employee or shareholder and if in the cars sales business. Taxable benefit is included in T4 Box 14 and posted in Code Box 34 = (Personal km x $0.24) minus amount employee paid employer within 45 days of year end plus GST!!! Standby charge must fill out RC18!

♦TIP! T2: Corporation Owner-Manager should buy the old company

vehicle that is also used for personal. (add .04 for NT NU YK)

(2) Standby charge also applies even if not used but is available

for use! 2% of orig cost or 2/3 of the lease cost calculated monthly

[(2%) (Cost of car) (period of availability)]

or 2/3 lease expense. 12 month use = 24%!

Better for employee to use own car and charge employer the NTCA It is usually wiser to use your own vehicle, post all business km in a log book, and get a cheque from employer for actual km driven.

2. Flat rate allowance (no km record) is a taxable benefit and EI & CPP deducted. No HST ITC taken. Use T2200—use Guide T4044.

Taxable Benefit

2012 2011 2010 2009 2008 2007 2006 2013-2015

2016 2017

General 0.26 0.24 .24 .24 .24 .22 .22 0.27 0.26

Auto Sales 0.23 0.21 .21 .21 .21 .19 .19 0.24 0.23

36

http://www.cra-arc.gc.ca/ebci/rhac/welcome.do



AUTO T777 & T2125 Limits TAX FREE ALLOWANCE

LIMITS 2016

2010-15 2009 2008 2007 2017

Max CCA B4 tax $30,000 $30,000 $30,000 $30,000 $30,000

Max Interest expense

$300 / month

$300 / month

$300 / month

$300 / month

$300 / month

Max Lease Exp. B4 tax

$800 / month

$800 / month

$800 / month

$800 / month

$800 / month

ITC GST province 5/105 5/105 5/105 5/105 6/106

NS, 15/115 15/115 113/113 13/113 14/114

ON 13/113 13/113 5/105 5/105 6/106

COMPARE CLASS 10 vs 10.1 CLASS 10 CLASS 10.1

CCA Rate 30% 30%

Group all vehicles in one class Y N

List each vehicle separately N Y

Maximum capital cost $30,000 N (less than) Y “luxury”

50% rule on acquisitions Y Y

1/2 year rule on sale of auto N Y

Recapture on sale or trade-in Y N

Terminal loss on sale or trade-in N N

37

Tax Free Allowances per km (use own car for business)

2015 2013 - 2014

2012 2008- 2011

2016 2017

1- 5000 km $0.55 $0.54 $0.53 $0.52 $0.54

5001 + km $0.49 $0.48 $0.47 $0.46 $0.48

YK NU NT 1-5000 $0.59 $0.58 $0.57 $0.56 $0.58

YK NU NT 5001 + $0.58 $0.52 $0.51 $0.50 $0.52



AUTO How to prorate KM T777 & T2125

1. PRORATE KMS 2. REMOVE G-HST ITC 3. DEDUCT

Diana’s simplified AUTO tax calculations! Essential for working papers in case of an audit

Prorate expenses by km ratio. From business km amt, minus G-HST ITC

Expense TOTALS

Prorated Km 47%

- HST 15% ITC

Allowed AUTO

Expense

Gas $5,700 2679.00 349.43 2,329.57

Oil & R&M $2,300 1081.00 141.00 940.00

Car Washes $ 240 112.80 14.71 98.09

Insurance $1,000 470.00 470.00

Lic or Reg'n $ 150 70.50 70.50

Lease Pymt N/A

Loan Interest $ 600 282.00 282.00

CCA $6,000 2820 367.83 2,452.17

TOTALS $15,990 $7,515.30 $872.97 $6,642.33

UCC Jan 1

Rate CCA Pro-rated

New CCA

HST 15% NS ITC

Final CCA

UCC Dec. 31

20,000 30% 6,000 47% 2,820 367.83 2,452.17 17,547.83

Record odometer Jan 1st and Dec 31st If: Log establishes business km = 15,000 km Odometer Jan 1 55,005 Odometer Dec 31 87,050 TOTAL DRIVEN 32,045

To Prorate: 15000/32045= 47% biz km

minus NS G-HST ITC = expense

38

Annual log



NASBA.CA 2007, 2008, 2009

39

NASBA #1 June 8, 2007, Best Western Truro

Quoted comments: “Great to see what BusinessVision can do for POS & multi-location inventory. Always wanted to know but those guys never come here. Thank-you for your two hr demo of the latest Simply Accounting version—I learned a lot.” NASBA #2 Jan. 17-18, 2008, Best Western Truro

Quoted Comments: “Excellent info about RDSP & Medical Deductions from The Tax Detective from BC. Barrie Reid’s Going Global was very inspiring. Enjoyed the fun rivalry btn SA & QB! RBC’s booth and presentation were very helpful.” NASBA #3 Jan. 9, 2009, Holiday Inn Truro:

Quoted Comments: “Very professional. Excellent Binders. CRA’s SR&ED credits info was new to me. Two lawyers from Patterson Hunt, Tompkins and Harris, gave vital info about liability and selling a business. Needed IFRS in plain English. Your Simply Accounting Tips & Tricks and What’s new in T1 Tax were great. Jeff Brown from Alpha Social Media Inc has me ready to upgrade my Microsoft Office.”



NASBA.ca 2010 AcSB’s Greg Edwards, CA, PE GAAP

40

NASBA #4 January 15 & 16, 2010

Hilton Garden Inn Halifax Airport Hotel

Quoted Comments: “Fabulous conference! Better location. Excellent food. Thanks for going overboard with the prizes. Two prize boxes of QuickBooks! E-Courier for email security , Bank of Canada about CID Theft and RCMP about com-mercial fraud were tremendous. I will change my security policies now. I needed to know the IFRS-Cdn GAAP info for the university of which I am a controller. 5 CAs were overdrive but to have AcSB was incredible...should have had 300 not 30.” “Good to find out about TaxTips.ca” NASBA#4 speakers including 5 Chartered Accountants

1. PE GAAP: Greg Edwards CA, Principal, AcSB, 2. Sell Cottage: Henry Visser CA, LLB, TEP; 3. Sell Business: Debi Peverill CA; 4. Paperless, QuickBooks: Peter Budreski CA; 5. Commercial Fraud: Cst Laurie Haines, CA 6. Quicken: Eileen Reppenhagen, CGA, . by Skype 7.The Tax Factor T1-T2: Diana Read-Miedema 8. Simply Accounting: Diana Read-Miedema 9. ID Theft Prevention: Bank of Canada, Alan Paquet



41



ACCOUNTING

Monthly fee bookkeeping, payroll, remittances using….

Best Office Practices

Titanfile.ca to send/receive docs, secure collaboration

SherWeb.ca Nightly virtual backups

Corporate Responsibility Measures were implemented

in BUSINESS CONTINUITY & DISASTER RECOVERY PLAN for

OFFICE, CLASSROOM, CAR and BUSINESS SUCCESSION

ASSOCIATES. Supplier was www.72hours.ca for survival

backpacks for Simply Financials’ office, classroom, car, home

and business succession associates and a solar lamp/radio/

recharger and a solar short wave radio. (See Page 10)

COURSES

Sage 50 Cad—Beginner to Experienced

Small Business Bookkeeping 101 and 201

TAXATION

T1 Personal, Rental, Self-Employed Taxes

T2 Corporate Tax Returns for non-complex businesses

SUPPORT

Setup, trained, and been a financial coach to over two hundred

businesses including Petro Canada, Tim Hortons, Brookfield Lum-

ber, Pye Rentals, retail, non-profits, farms, wholesalers, manufac-

turers, a famous Maritime magazine, tire shops, and a Halifax

brewery! Hourly fee: $60/hr Maritimes. $100/hr rest of Canada.

Simply Financials Services by Diana Read-Miedema

42



43

◊ 1980 Accounting: Georgian College Barrie ON

◊ 1988 Certified by Cdn School of Tax Accounting & open home office

◊ 1990 Join Assoc. Professional Accounting & Tax Consultants Inc

◊ 1992 Dalhousie U. Advanced Mgmt. Center-Entrepreneurship

◊ 1994 Started free e-newsletters - Tax & Simply Accounting Tips

◊ 1997 Simply Accounting Certified Consultant by ACCPAC U

◊ 1999 NSCC Truro. Wrote & taught Simply Accounting Essentials,

Cash Flow Management, Understanding Financial Statements

◊ 2001 Passed exam-Affirmed Accounting Member of the APATC

◊ 2003 May—host Atlantic Training Centre for Vertebrae POS

◊ 2004 1st Annual Open House to Demo Simply (did until 2010)

◊ 2005 TRADEMARK REGISTERED for SIMPLY FINANCIALS®

2005 May - CRA Halifax- HST Trust Examiners and Payroll Auditors

◊ 2006 JUDGE at Dal U. Norman Newman Centre Entrepreneurship

◊ 2007 NASBA #1 Friday June 8, Best Western Truro:

BusinessVision, Computer Networks, Simply Accounting

◊ 2008 NASBA #2 Jan 17-18, Best Western, E. Reppenhagen CGA new

DRSP; Simply vs QB in 30m; Going Global; RBC

◊ 2008 Sept. Diana profiled: Partner Pulse News by Simply Accounting

◊ 2008 Certified Professional Bookkeeper by IPBC.ca

◊ 2009 NASBA #3, Jan 9, Holiday Inn Truro * CRA SR&ED advisors; Patterson Law, * T1-2008 + Simply Acctg + IFRS v GAAP for Bookkeepers by Diana Read-Miedema; *RBC Erin & Allison *Office by Jeff Brown

◊ 2009 April-start Sage Accountants Network Partner Meetings

◊ 2009 1st in Atlantic! GOLD & Sage Certified Trainer by Sage U.

2010 NASBA #4, Jan 15 & 16, Hilton Airport Hotel

Keynote: Greg Edwards CA, Principal AcSB, PM of PE-GAAP

◊ 2010 “Role Models on Tour” with Black Business Initiative HFX

2011-12 Sage U Contract Instructor @ Hands-on labs HFX

◊ 2012 Apr 17: Sponsor: Truro Dragon’s Den with Bruce Croxon ◊ 2012 Oct 16: Speaker/exhibit at Truro Entrepreneur Forum

◊ 2013 Nov 18 Startup Canada – Speed Mentorship Lunch here

◊ 2014 NASBA #5, Jan 29: Glen Schmidt BA, FCGA -T1; two CRA experts from GST-HST Rulings Halifax; Chris Zinck P.Eng., Sage One Georgia, Brenda Parker CGA; Alison Morgan LLB; Sage50-Diana Read-Miedema

◊ 2014 March. Mentor at Startup Weekend, Perennia/Dal Agri Campus

◊ 2014 June FCC Certified in AgExpert Analyst

2016 Oct 12—Instructor @ CPA NB Prof Dev’t Conference Fredericton “Simply Financials-Cutting Edge Skills for Experienced Sage 50 Users”©

Achievements of Diana Read-Miedema


Simply Financials-The Tax Factor© Disclaimer. Not responsible for errors or omissions. Educational use only. Free PDF at SimplyFinancials.com. Printed copy $25+postage+tax. For Educational Use

Only. Not an Engagement of Service. Will not be held liable for errors or omissions.

Simply Financials®, Diana Read-Miedema

SageHub, 20 Willow Street

Truro, Nova Scotia, B2N 4Z4 (902) 895-6074 * Monthly Bookkeeping, HST, Financial Coaching * Payroll: PD7A, WCB NS, ROE WEB, Direct Deposit * Yr End Accounting: E-file T1, T2, T4, T4A, T5018 Sage50 Tech Support & Training, Financial Coaching $60/hr Maritimes. $100/hr rest of Canada

http://www.simplyfinancials.com

Documents

THE TAX FACTOR - Simply Financials - Taxsimplyfinancials.com/images/uploads/(Nov22)_Simply_Financials-Th… · 2016 Winter Edition Issue Nov. 22 (44 pages) Canada Revenue Agency Rates