Category: Articles

Payroll remittance due dates for Threshold 1 and Threshold 2 accelerated remitters are different:

Payroll remittance due dates are always based on when an employee is paid for his or her services (payday) rather than the pay period for which the services are rendered.

As an employer, you have to deduct, remit, and report payroll deductions. You may be liable for penalties and interest for failure to do so.

A prepaid expense is an expense you pay for ahead of time. Under the accrual method of accounting, claim any expense you prepay in the year or years in which you get the related benefit.

For tax purpose, a passenger vehicle may be subject to a limit on the amounts that can be deduct for capital cost allowance, interest, and leasing costs. 

You passenger vehicle can belong to either class 10 or class 10.1 depending on the cost of the vehicle. If it costs more than $30,000 (cost limit) before GST and PST or HST, it belongs to class 10.1. The rules of capital cost allowance (CCA) between these two classes are different. 

Many people don’t understand why their Canada child tax benefit (CCTB) payment received in July was different from the amount received in June. In July every year, the monthly CCTB payment is recalculated using the tax return of new base year because CCTB benefit year starts from July 1.

Starting from 2012, you are required to make CPP contributions on employment income and/or self-employment income as long as you are under the ages of 70 even if you are collecting CPP benefit. However, if you are 65 or older and you are a CPP working beneficiary, you can elect to stop paying CPP contributions.

If you use your vehicle strictly for your business, you can deduct 100% of your vehicle expenses. However, in many cases, the vehicle is used for business and personal use. In this case, you can only deduct the part of the expenses related to your business.

Expenses incurred for purely cosmetic procedures are not qualify for medical expense tax credit after March 4, 2010. This generally includes surgical and non-surgical procedures purely aimed at enhancing one’s appearance.