Tax Filing Deadline for Unincorporated Business Owners

April 30th has come and gone now a number of business people and their accounting professionals are focused on Midnight June 15th. This is the tax filing deadline for unincorporated business owners and their spouses, and the official end of tax season. Failure to file and pay the taxes due by June 15 results late filing penalties and interest. File by midnight June 15 and avoid the 5% late filing penalty plus 1% per month on the outstanding balance for up to 12 months. If you are delinquent on paying for the second time within three years, that penalty goes up to 10% of the outstanding amount plus 2% per month for up to 20 months. Make this deadline so you can truly enjoy summer – if you need assistance reach out early as most accounting professionals will likely be booked the last couple weeks before the deadline. If you have trouble coming up with the funds to pay your taxes every year we have a system that will help eliminate this frustration.

Greg Libbrecht, President Platinum Books & Five Star Accounting

Online Banking – a new way to invest your money

Online banking has opened up new opportunities for consumers to earn higher interest rates on their money .  Online banks do not have to support bricks and mortar and as a result offer higher interest rates to their clients.

As with any new way to do business, it has also attracted fraudulent operators who are attempting to defraud people of their money.  Before putting your money in with an online bank or credit union check them out to be sure they are legitimate.

For banks the Federal Deposit Insurance Corp. (FDIC) can determine if you are dealing with a legitimate bank.

For credit unions the National Credit Union Administration (NCUA) can validate if the credit union you are dealing with is legitimate.

Before depositing your money – always check to ensure you are dealing with a legitimate online banking organization.

Greg Libbrecht – President, Platinum Books & Five Star Accounting

Happy Easter!

Just a reminder – our office will be closed on Friday, April 19.
Wishing you a very Happy Easter filled with plenty of love and happiness.
Greg Libbrecht and the Team at Platinum Books & Five Star Accounting

Easter_Image

The Carbon Tax is here

Effective April 1 the Federal Government imposed tax is in place in Manitoba, Saskatchewan, Ontario and New Brunswick. The Federal Tax is $20 per tonne this year and will increase annually by $10 per tonne until it reaches $50 per tonne in April 2022.

This year the price of a litre of gas will increase by 4.4 cents, about 4 cents a cubic metre of natural gas and it will drive up the price of propane, butane and aviation fuel. Here in Manitoba we saw the impact immediately as prices at gas stations increased on April 1. Businesses and consumers will be paying more for many items they purchase.

The government has created a rebate system that they say will return most of the extra costs incurred by consumers in the form of an income tax rebate. They have not revealed details on how they will deal with the increase costs incurred by small to mid-sized businesses.

The new tax has resulted in uncertainty on how businesses should react – can they afford to absorb the costs or should they pass on at least part of the costs to customers. If you are unsure, contact us and we can help you assess the impact on your business and recommend an action plan.

Greg Libbrecht, President – Platinum Books & Five Star Accounting

Federal Government 2019 Budget

Some Highlights:

• Annual Deficit for 2019-2020 – estimated to be $19.8 Billion and will continue to run deficits for the foreseeable future
• Corporate Tax – no changes to federal corporate income tax rates or the small business limit for 2019
• New Canada Tax Training Benefit – includes a Training Credit of $250/year to a maximum of $5,000 and EI Training Support that includes 4 weeks of income support every four years at 55% of the worker wages
• Home Buyers’ Plan proposes first time home buyers can withdraw up to $35,000/ per person from their RRSP tax free
• Individual Pension Plans (IPPs) – assets transferred to an IPP in respect of benefits attributable to employment with a former employer that is not a participating employer will be included in the income of the member for tax purposes
• TFSA – the individual to be liable to pay income tax (at the top personal rate) on income from a business carried on in a TFSA from non-qualified investments (extended to the TFSA holder in addition the financial institution)
• Phoenix pay issues – an additional $540 million to try to fix/ stabilize the federal payroll system
• Incentives for businesses to purchase eligible zero emission vehicles – a temporary 100% first year CCA allowance
• Cap on the dollar value of stock options that can be received at a favourable tax rate
• These are just some of the details many more exist

For more details on the specific pieces of the budget that will affect you talk to your financial advisor
Greg Libbrecht, President – Platinum Books & Five Star Accounting

The City of Winnipeg and Province of Manitoba Budgets

City of Winnipeg Budget Highlights:

  • A 2.33% property tax increase.
  • About $30 million less in spending on road repair.
  • A reduction in the business tax (from 5.14% to 4.97%) and an increase in the rebate threshold (to $33,900).
  • The creation of the Department of Innovation, Transformation, and Technology.
  • A one-point reduction in the dividend transferred from water and utility rates to general revenue.
  • No new fees, and business-related fee increases are at the rate of inflation.
  • $3.15 million for driver safety shields in transit buses

You can find the full city budget at – www.winnipeg.ca/budget

Province of Manitoba Budget Highlights:

  • The major highlight is Provincial government will fulfill its election promise to reduce the PST from 8% to 7% effective July 1, 2019.
  • The projected deficit is to reduce to $360 million.
  • The amount budgeted for the film and video production tax credit has nearly doubled, to $31.5 million.
  • Federal transfers are up about $324 million compared to 2018-19.
  • Spending is flat, with an overall increase of only 0.3%, and some reductions in funding for infrastructure and post-secondary institutions.

You can find the full provincial budget at – www.gov.mb.ca/budget2019/

Thank you to the Winnipeg Chamber of Commerce for their summary of both budgets.

Income Reporting Requirements

It is that time of year again – we need to finalize all of our income reporting requirements. The last day of February is the deadline for issuing:

T4 Slips – Employment Income
T4A Slips – Commission Income
T5 Slips – Investment Income

If you have not completed these reporting requirements – be sure to get it done before the end of February. Many people are unsure what they need to do. If you are one of the many, ask our team of professionals to guide you through it or have us complete this for you.

Greg Libbrecht – President Platinum Books & Five Star Accounting

Happy Holidays

All the Best to you and your Family over the Holiday Season from our team at
Platinum Books & Five Star Accounting

Happy_Holidays

Our office will be closed
December 25, 26 and January 1
We are open regular hours Dec 24th & 31st with reduced staffing
We appreciate your patience and understanding
Greg Libbrecht

Payroll Holiday Season Deadlines

In preparation for the Holiday Season – we would like to remind everyone payroll deadlines have been modified to accommodate bank closures over the holidays.
A schedule of modified deadlines is listed below – to be sure confirm with your service provider or your bank.
Greg Libbrecht – President, Platinum Books & Five Star Accounting

 

Pay Date Approval Due Date
December 24 December 19
December 27 December 20
December 28 December 21
December 31 December 24
January 2 December 27
January 3 December 28
January 4 December 31
January 7 January 2

 

Payroll Yearend is coming

Here are a few ideas to make your payroll year end easier:

• Are you missing any information for your staff – to complete T4s you need to have SINs and current addresses for every employee (current or past) who worked for you during the year.
• Payments to staff outside of the payroll system need to be added to the T4’s before the year ends in case there are any CPP, EI or taxes owing. This will also prevent late penalties and Pensionable and Insurable Earnings reviews from CRA.
• TD1’s should be reviewed and especially for staff claiming amounts above the basic on their TD1 or have extra tax deducted, be sure the staff review their forms and they are up to date for the new payroll year in January.
• Taxable Benefits not tracked in the payroll system be sure to get advise on how to deal with these.

If you are managing your own payroll – we can help you with any of these and other payroll related issues.
Greg Libbrecht – Platinum Books & Five Star Accounting