Category: Personal Tax Preparation

Know About Taxable Benefits for Employees with Calgary Accountants

Post author By devAdmin
Post date September 1, 2022

There are numerous sorts of benefits that a corporation can offer to their employees. Depending on the character of the advantage, it’ll both be taxable or non-taxable to the worker.

What Are Taxable Benefits?

The word “taxable” manner that the fee of the advantage should be covered within side the worker’s earnings and difficulty to earnings tax. The fee of the advantage is commonly mentioned at the personnel T4 slip, that’s submitted to the Canada Revenue Agency (CRA), and covered for your private tax return. The quantity of earnings tax owing might be calculated primarily based totally for your marginal private tax rates.

But how you get to know that which benefits are taxable or not? Confused? Don’t worry, let us make it easy for you.. 🙂

Which Employee Benefits Are Taxable?

In standard, if a worker receives “a monetary benefit that may be measured in dollars” and if the worker is the number one beneficiary of the advantage, it will likely be taken into consideration taxable.

Are Gifts And Rewards Taxable?

One vicinity that usually comes up with reference to worker taxable blessings is Gifts and Rewards given with the aid of using employers to their personnel.

Cash Rewards

Cash and near-coins presents or awards are continually a taxable advantage for the worker. A near-coins object is one which features as coins, along with a present certificate, present card, or an object that may be without difficulty transformed to coins along with a gold nugget, security, or stock.

Gifts and Awards

A present should be for a unique event along with a spiritual holiday, birthday, wedding, or the beginning of a child. An award must be for an employment-associated accomplishment spotting the worker’s typical contribution to the workplace (now no longer popularity of task performance). The corporation is needed to apply the honest marketplace fee of every present to calculate the overall fee of presents and awards given to a worker with inside the year. You may also provide a worker a vast wide variety of non-coins presents and awards with a mixed overall fee of $500 or much less annually. If the honest marketplace fee of the non-coins presents and awards is extra than $500, the quantity over $500 should be covered with inside the worker’s earnings as a taxable advantage. It is critical to be aware that gadgets of small or trivial fee do now no longer must be covered while calculating the overall fee of presents and awards given with inside the year. This may also consist of coffee/tea, mugs, plaques/trophies, shirts with corporation’s logo.

Long-Service Awards

In addition to the coverage said above, the CRA lets in as soon as each 5 years for an corporation to provide a non-coins long-provider or anniversary award valued at $500 or much less, tax-free. The award should be for at the very least 5 years of provider and it should be at the least 5 years because you gave the worker the remaining long-provider or anniversary award. Any quantity over $500 could be taken into consideration a taxable advantage. It is critical to be aware that the $500 exemption for long-provider awards does now no longer have an effect on the $500 exemption for different presents and awards with inside the year.

Want To Know More About Employee Benefits?

With our Calgary’s professional accountants at Matrix Accounting, you can learn in a better way about taxable and non-taxable benefits. For more information, you can get in touch with our accountants at 403-668-4070 or can book a free consultation anytime.

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Personal Tax Account Personal Tax Preparation

Planning to buy a vehicle, know about Tax Implications with Professional Calgary Accountants!

Post author By devAdmin
Post date July 26, 2022

Are you planning for your dream car?

Or looking for a vehicle for your corporate use?

Must know about the tax terms over it with tax experts!

If you’re planning to buy a vehicle, you should know about the tax implications. No matters, if you’re purchasing a vehicle, new or used, you need to pay the taxes. So, if you locate in Calgary, you have the chance to connect with professional tax experts to discuss about your tax terms in convenient way!

It’s not just about your vehicle tax, even though you can connect with you can connect with best Calgary accountants for your personal and corporate taxes too! Isn’t that amazing…… 🙂

Everyone knows, when it comes to taxes, you’ll have to pay a tax primarily based totally on which province you stay in, who you’re shopping from – both a dealership or thru a non-public sale.

In case you’re with inside the marketplace for a luxurious vehicle, you probably don’t thoughts that you’ll need to pay the federal luxurious tax, which comes into impact in September 2022. The luxurious tax is carried out earlier than GST/HST on cars worth over $100,000. It might be calculated on the lesser of 20% of the price above the $100K threshold, or 10% of the overall price of the automobile.

So, if the automobile is $125,000, the tax might both be 20% of the quantity over the threshold, which in this example is $5,000, or 10% of the overall price which is $12,500. Therefore, this client might pay a $5,000 luxurious tax.

So, if you could get a vehicle manner inexpensive in a neighboring province, does it pay to shop for it there and power it domestic? It’s possible, however unlikely. There is probably greater charges you haven’t taken into consideration but.

• You would possibly need to deliver your vehicle in case you haven’t but registered it on your province, due to the fact you want registration to get coverage and also you want coverage to power the automobile!

• You should sign up the automobile with inside the different province, however you’ll need to achieve this once more while you get the automobile for your personal province, and each have related costs.

• You nevertheless need to pay your provinces’ taxes while you get the automobile domestic to sign up it, so in case you paid 6% provincial tax to Saskatchewan, you continue to need to pay 8% to Ontario (even though in case you stay in an HST province and acquired your vehicle in a GST province, you handiest need to pay the difference). And don’t overlook your evidence of sale and different documents, in any other case you would possibly locate yourself paying GST once more too!

• Some provinces have all-in pricing at the same time as others don’t, so there is probably hidden prices you’re ignorant of while first finding out the automobile.

• Car inspections range in with the aid of using province, so ensure to do your research. Private dealers aren’t required to gather taxes from you while promoting to you, however as quickly as you sign up your vehicle on your province, the province will ask for that payment, so ensure you aspect that into your decision-making!

Are you planning to buy this vehicle to power for a experience sharing platform, or as a part of your paintings doing meals delivery? You would possibly to consult with Matrix Accounting’s professional Tax accountants to deal with your tax claims.

If you’re still confused, Calgary’s professionals are right here to help, and in case you’re equipped to report your taxes, Just book a free consultation with our experts at (403) 668-4070.

Tags " Calgary Tax Accountant", Calgary Accountants, Calgary accounting firm, personal accountant calgary, personal tax accountant calgary, Personal Tax Return, Tax Accountant Calgary

Personal Tax Preparation

Eight Things to Keep in Mind during Tax Preparation

Post author By devAdmin
Post date May 3, 2022

As a Calgary accounting firm, many of our clients provide tax tips and questions to help them save money on taxes. The Canadian Financial Agency receives many of the same questions and answers them through various useful articles, which we are happy to share with you.

Are you ready for your taxes in 2022? The Canada Revenue Agency (CRA) has some tips that can save you time and money.

There are eight things to keep in mind during the tax period:

Enter your tax return

It’s important to file your tax return on time to avoid interest and penalty charges, and possible delays or interruptions in your benefit and credit payments. Even if you didn’t receive any income this year, you may still get a tax refund and be eligible for benefit and credit payments.

Make sure you apply tax breaks and deductions

There are tax breaks and deductions that you can get upon your return, as well as a benefit for your income tax. Not sure what tax breaks and deductions you might be entitled to?

No Worries. Matrix Accounting’s Professional Tax accountants are here to help you all the time.

If you run your own registered business, you may have the right to charge a number of business expenses upon return, such as the cost of a car or home use. For more information about the expenses you may incur, see the Business Expenses page.

Report all your earnings

Make sure you list all your earnings. You must have most bills, such as T4 bills, from your employer, payer, or administrator by the end of February.

Other income you earn cannot be included in the tax credit. Tipping, money earned by providing accommodation or joint rides, regular sales at a flea market or online, providing trucking services, maintenance services or snow removal – all this is considered income to be reported.

If you have already filed all of your tax returns but have not reported all of your earnings or deductions, Be in touch with the Calgary’s best accountants to help you with your personal and corporate tax needs.

Make a valid claim

Make sure you know what you can and can’t have. Non-deductible amounts are sometimes embezzled, such as funeral expenses, marriage expenses, loans to family members, the loss of the sale of a house used primarily for housing, and other similar amounts.

If the CRA finds that you have made a mistake or a mistake in the complaint, it will change your refund. For a list of the most common changes made by the CRA, see the Common Changes section.

Get free tax help

If you have a small income and a simple tax situation, you can easily find the best tax professional to guide you.

Submission and payment on time

If you have a debt balance and do not submit your return on time, the CRA will charge you a late filing penalty. The penalty is to pay 5% of your balance on the due date of your return plus 1% of your balance due for each full month you return later, for a maximum of 12 months. Even if you can’t pay your balance due to the shipping deadline, you can avoid the late shipping penalty by sending it on time.

If you receive benefits, such as Canadian Child Allowances, and do not file your tax return in a timely manner, your payments may be delayed or stopped.

In our beautiful city, there are many professional tax accountants from Calgary who provide tax services. However, we hope you enjoy working with CPA, which specializes in accounting and consulting for small businesses. Whether you are for a profitable business or not for a profitable business and you are looking for a Personal or Corporate accountants, we can help you. Contact us today or call us at (403) 668-4070 / (403) 770-8419.

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