Chartered Professional Accountant, Experienced Bookkeepers, Personal and Business Tax Return Specialists - Whitby ON - Call - Toll Free: 1-800-942-5558 or Local: 905-666-5071 admin@kmpc.ca

Kelly’s Updates from CRA

A few updates that you should know about…

Mileage Claims:

Automobile, the kilometre allowance went up a cent so it is now 55 cents for the first 5000 km and 49 cents for the balance. Remember, if you are paying by kilometre you must have an auto log.

My Account

If you don’t have one you need to get one.  From your my account you can retrieve your notice of assessments, CRA will send the status of your return to your My Account,  you can get balances of home buyer’s plans, RRSP limits …all kinds of great information. Now you can get a mobile app “My CRA” try it!

CRA tends to send out requests for documents and they may not give you a lot of time for this, don’t panic just call the number on the letter and request for more time, they are good for that.

New Economies

As of March 19th,  2018 CRA is jumping on the Airbnb wagon, they will be ensuring that this home-sharing income is reported. This is considered rental income and must be claimed. In fact, all sharing economies are being looked at i.e.: ride sharing, music and video streaming, online staffing, peer/crowdfunding are to name a few that these sharing services must be claimed as income when earning income from these, if not CRA considers it underground economy which may attract fines, penalties or even jail times.

Payment Arrangements with CRA

Payment arrangements, CRA is cracking down on payment arrangements, Last time I dealt with a situation for a client, the collection officer said, before we will even discuss it, I want to see cashflow statement, net worth, a letter from a bank stating they will not loan any money to this client.  If anyone is struggling to pay their debt with CRA there are two tools you can use to see what you think they will allow.

*One is a Payment Arrangement Calculator  – this will estimate the payments and time needed to eliminate the debt

* Two is Income and Expense Worksheet Calculator this helps calculate the part of the one’s net income that is available to pay the tax debt

Payroll Examinations

Lots of these are happening, why?  They are trying to catch any firm that had employees and are now subcontractors so if your payroll dipped down most likely you will receive a letter asking to provide payroll information and bank statements with cheques.  No need to panic if nothing like this has happened.  If you did move people off payroll and are now subcontractors a few things must take place for them to be true subcontractors.  There is a guide on CRA’s website Canada.ca called Employee Versus Subcontractor and it will tell you the status of both to confirm if you can move them to be a subcontractor.  The other situation you have is if CRA’s status says yes, they can be a subcontractor that does not mean WSIB will determine that they are a subcontractor so you need to do a status determination with WSIB using different criteria.  Please ensure you do this, so you are not on the hook for WSIB especially when you didn’t plan for this.

Last Returns

Another issue that has come up more and more and that is the amount of final returns that are happening, when a loved one dies, and you are the executor there is a big responsibility to making sure things go smoothly.  On CRA’s website type in What To Do When A Loved One Dies .  There are forms to fill in so that everything goes smooth.

Celebrating 25 years in Business!

Open house! We are having an open house Nov 23rd from noon to 6pm.  I must apologize, for those who have been to my office, our parking lot is now going to be torn up a bit due to a pipe needing replaced and construction starts Nov 7th, however, they will have a pathway for us to drive back to our unit, I do apologize for this inconvenience. I can guarantee once you pass that mess you will arrive at our office and inside we will have amazing good food and the first 100 people will get a little gift. I hope you can join us to celebrate our 25 years in business! We are excited, and I want to thank all my amazing clients because of you I have grown from just me alone to 6 people  – soon to be 7 !

Kelly Melanson CPA, CMA

Kelly Melanson, CPA, CMA is the founder and owner of Kelly Melanson Professional Corporation. She and her team specialize in helping companies grow via strategic financial management practices. For almost 25 years, Kelly Melanson, Chartered Professional Accountant (CPA, CMA) has been helping businesses in Whitby, Oshawa, Ajax, Durham Region and the Greater Toronto Area (GTA) to reach and surpass their profit goals.

If you would like to speak to us regarding  Business Accounting, financial  retirement or tax planning, tax returns, bookkeeping or any of your other  please contact us anytime – we’d love to chat with you.

Kelly Melanson Professional Corporation – Chartered Professional Accountant, CPA 11 Stanley Ct, #13 Whitby, ON L1N 8P9 – Local: (905) 666-5071 Toll-free: 1-800-942-5558 – Email: admin@kmpc.ca  Web: https://kmpc.ca

Tax Tips and Updates

Psst…. RRSP Contribution Deadline is NOW & Other Tax Time Tips and Updates!

In today’s vlog Kelly Melanson, CPA reminds us that time is running out to take advantage of RRSP contributions for this tax year.  Kelly also shares some interesting updates and information like: 

  • New CRA audit focuses that are VERY unusual, like matching your postal code with your house and comparing it to your declared income and seeking 3rd party data to track PayPal revenues 
  • Incorporation or Sole Proprietor? Which one suits you best?
  • Salary or Dividend – do you understand how each scenario would impact your tax planning?

So watch this vlog and hear it straight from Kelly.

Kelly Melanson, CPA, CMA is the founder and owner of Kelly Melanson Professional Corporation. She and her team specialize in helping companies grow via strategic financial management practices. For almost 25 years, Kelly Melanson, Chartered Professional Accountant (CPA, CMA) has been helping businesses in Whitby, Oshawa, Ajax, Durham Region and the Greater Toronto Area (GTA) to reach and surpass their profit goals.

If you would like to speak to us regarding  Business Accounting, financial  retirement or tax planning, tax returns, bookkeeping or any of your other  please contact us anytime – we’d love to chat with you.

Kelly Melanson Professional Corporation – Chartered Professional Accountant, CPA 11 Stanley Ct, #13 Whitby, ON L1N 8P9 – Local: (905) 666-5071 Toll-free: 1-800-942-5558 – Email: admin@kmpc.ca  Web: https://kmpc.ca

Updates on 2017 Proposed Tax Changes for Business

Updates on 2017 Proposed Tax Changes for Business

Hello friends!  Yes, I have an update on the latest rumblings from the government on the proposed changes to the tax rules for businesses released this past fall (2017) . In this video I discuss the latest updates and what they might mean for you and your company. I have also provided links (below) to more in-depth information on each topic that I discuss in this video. So, make some time to watch this video and read up on these proposed changes… because it’s better to be prepared that to be sorry and owe the tax man!

If you have any questions about these changes please contact our office, we’d be pleased to speak with you.

For more information click on the topic 

Thanks for stopping by!

Kelly

Kelly Melanson, CPA, CMA is the founder and owner of Kelly Melanson Professional Corporation. She and her team specialize in helping companies grow via strategic financial management practices. For almost 25 years, Kelly Melanson, Chartered Professional Accountant (CPA, CMA) has been helping businesses in Whitby, Oshawa, Ajax, Durham Region and the Greater Toronto Area (GTA) to reach and surpass their profit goals.

If you would like to speak to us regarding  Business Accounting, financial  retirement or tax planning, tax returns, bookkeeping or any of your other  please contact us anytime – we’d love to chat with you.

Kelly Melanson Professional Corporation – Chartered Professional Accountant, CPA 11 Stanley Ct, #13 Whitby, ON L1N 8P9 – Local: (905) 666-5071 Toll-free: 1-800-942-5558 – Email: admin@kmpc.ca  Web: https://kmpc.ca

How to Register for your CRA ‘My Account”

Learn How to Set up Your CRA My Account – It’s Quick and Easy!

Kelly Melanson, CPA show you in this step-by-step video how to set up your own My Account with Canada Revenue Agency.

 

You can better manage your finances if you have up-to-date information. That is why I am encouraging all my clients to make sure they sign up for their “My Account” with CRA. It is fast and easy. You can watch the video on my site where I show you, step-by-step, how to to set up your My Account with CRA You will be happy you did, because once you sign up you can:

Knowledge is Power – Get it with your CRA My Account:

• Find out your RRSP limit, home buyer’s plan balance and Tax Free Savings balance
• Print off your notice of assessments going back to 2005
• See if any carryover amounts like tuition
• See if you owe any money, if you made installments how much, etc.
• Request information through sending CRA a message
• Check your child tax benefit payments and when they were paid
• Check your HST credits, disability credits working income tax benefits, Ontario trillium benefits, so if it says they mailed you a cheque and you didn’t get it, you can call and ask where they sent it to… maybe you didn’t change your address?
• Submit required documentation to CRA when there is a request for information from you. Simply scan it and submit it electronically via your account!
• Save yourself money because you can do all these things yourself and save yourself service fees
• MOST importantly – protect yourself and your money! There have been a lot of scams recently so if you receive a request that seems a little strange you can log into your account and review any letters sent to you from CRA through the view mail function to ensure that it is a legitimate request from CRA.

If you would like to speak to us regarding your tax planning, tax returns or any of your other accounting or financial planning needs, please contact us anytime – we’d love to chat with you.

Kelly Melanson Professional Corporation – Chartered Professional Accountant, CPA 11 Stanley Ct, #13 Whitby, ON L1N 8P9 – (905) 666-5071 Toll-free: 1-800-942-5558 – Email: admin@kmpc.ca

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