In Canada, the time frame in which you can contribute to your RRSP account for a particular calendar year runs from March 1st to February 28th of the following year. For example, you can contribute to your RRSP account until February 28, 2013 in order to get the tax deduction on your 2012 taxes. If you have or intend to open an RRSP account there are few things that you should know to best utilize this option that you have. [...]
In 2009, the government passed legislation that would allow Canadians an alternative method of saving for retirement. The TFSA was introduced to give people more flexibility with their money. As you know with RRSP's, that money is generally locked in until retirement, that is of course you are willing to pay back the tax savings that you received when you took the RRSP deduction on your taxes. Generally speaking, the TFSA is more of a "pay as you go" type [...]
One of the many advantages of incorporating your business are the long-term benefits that can come with investment of excess assets. You spend a lifetime try to make your company worth something, and when you finally do, you now have excess cash to work with. What many people don't realize is that you can essentially create a retirement plan out of your company. The norm these days is to invest in an RRSP, which brings down your taxable income each [...]
Before you embark on your first payroll of the year for your employees, it would be of interest to you to get your employees to fill out a TD1 form for both their federal and provincial portions of their tax withholdings. A TD1 form is a Personal Tax Credits Return. When filled this form can allow your employees to get larger net cheques as their payroll cheques will factor in some tax credits that they will usually receive when they file their [...]
In Canada, many small business owners don't realize that they have some options in terms of the type of remuneration they can receive from their company. Each type of remuneration has its advantages as well as disadvantages. Due to the unique circumstances of each business there is never a right answer as to which type of remuneration is best. To you the owner, the type of remuneration you would like to receive depends on your short and long term goals [...]