CDIC: Best Way to Protect Your Cash in Canada (English)

Is your money protected by the CDIC? Keep reading below to find out how to keep your hard earned money safe.

Tiền của bạn có được bảo vệ vởi CDIC không? Hãy đọc để tìm hiểu làm thế nào để gởi tiền của bạn cho an toàn. Vietnamese posting here.


The CDIC insures eligible deposits in banks, trust companies, and loan companies against loss in case of member failure, BUT only to a maximum of $100,000 (principal and interest) per depositor, per category listed below:

  1. In one name: Savings/Chequing Accounts/Term Deposits (GICs) with original terms to maturity of 5 years or less
  2. In more than one name: Savings/Chequing Accounts/Term Deposits (GICs) with original terms to maturity of 5 years or less
  3. In Trust: Savings/Chequing Accounts/Term Deposits (GICs) with original terms to maturity of 5 years or less
  4. In RRSPs: Eligible deposits Savings Accounts/Term Deposits (GICs) with original terms to maturity of 5 years or less
  5. In RRIFs: Eligible deposits Savings Accounts/Term Deposits (GICs) with original terms to maturity of 5 years or less
  6. In TFSAs: Eligible deposits Savings Accounts/Term Deposits (GICs) with original terms to maturity of 5 years or less
  7. Eligible deposits for realty taxes on mortgages: Savings Accounts/Chequing Accounts/Term Deposits (GICs) with original terms to maturity of 5 years or less

Uninsured products include:

  1. mutual funds, stocks, and bonds,
  2. Term Deposits (GICs) with original terms to maturity of 5 years +
  3. foreign currency deposits

The CDIC has a nice infographic here which lists the remainder of the uninsured products.

Please use their online calculator to make sure your hard earned money is protected! Or contact the CDIC.

 

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WCB Coverage in Alberta

WCB insurance provides your employees with benefits and services after an injury happens. You may have to sign up for WCB coverage for your employees. Please contact WCB Alberta to find out if WCB coverage is mandatory for your corporation. If so, you must open an account within 15 days of hiring your first worker.

If your corporation is an exempt industry you can voluntarily apply for WCB coverage for your employees.

As a business owner, you are not automatically covered by WCB but coverage is available and automatically renews every December 31st. Please remember to base your coverage on your actual EMPLOYMENT EARNINGS (earnings before taxes). If injured you will need to provide records to prove your employment earnings such as your T1 general or T4 slip.

ANNUAL RETURNS

Annual returns must be submitted before the last day of February each year to avoid penalties. At the beginning of the year, you will receive a letter from WCB with your Annual Return Password. If our office prepares your payroll please remember to forward the letter to our office so we can help you file your return on time!

Why Do More Edmonton-area Nail Salons Choose THUT Accounting Than Anyone Else?

Có nhân viên kiểm tra thuế (auditor) làm ở cơ quan thuế Canada Revenue Agency (CRA) báo cho văn phòng mình biết là:

  1. CRA có nguyên một đội ngủ chuyên kiểm tra lại thuế tất cả các tiệm nail trong vòng 2 năm
  2. Trong đội ngủ này CRA có nhân viên biết tiếng Việt Nam sẻ giúp kiểm tra và thông dich lại những quảng cáo của những tiệm nails đăng trên Thời Báo (Trả bao nhiêu tiền một tháng và trả ăn chia v.v..). Auditor nói CRA sẽ dùng thông tin này để tìm lại số tiền mặt mà các tiệm Nail không khai báo là bao nhiêu.
  3. CRA đã và đang cho người giả xin việc gọi đến từng tiệm Nail và hỏi có trả tiền mặt hay không để báo lên CRA.
  4. CRA đang kiểm tra lại thuế tiệm Nail là vì có nhiều người trong ngành Nail phản ảnh với CRA vụ cách thức tiệm Nail Việt trả tiên cho nhân viên cho nên họ khong thế cạnh tranh được (ví dụ như tiệm Italian va Lebanese v.v.).
  5. Mua một chiếc xe với giá trị 75% hoặc nhiều hơn số tiền thu nhập hàng năm bạn báo sẽ gây ra một cuộc kiểm toán (audit).
  6. Trong một cuộc audit CRA cũng kiểm tra xem làm thế nào bạn có thể trả tiền mortgage của bạn.

CRA có quyền:

  • Tìm hiểu thông tin từ nơi đăng ký xe (Registry Office )mình có bao nhiêu xe và xe gì
  • Lấy thông tin từ ngân hàng (cá nhân lẩn doanh ngiệp) và thông tin mortgage của chủ tiệm nail
  • Và họ lên City of Edmonton website để coi giá trị của căn nhà của bạn

Chúng tôi đề nghị tiệm Nail phải có hệ thống quản lý bán hàng (Point of Sale system) hoặc ghi lại thu nhập , xem Example – Sales Journal – Month of July hoặc liên hệ với văn phòng THUT cho một mẫu để sử dụng.  Tiệm Nail cũng cần ghi lại tiền TIP trả cho nhân viên hàng ngày bởi vì chủ tiệm nail không cần phải trả thuế và GST trên tiền TIP này.  Để biết thêm về hồ sơ thu nhập : English / Vietnamese.

Trong trường hợp nếu bạn bị kiểm tra thuế thì bạn cung cấp cho Auditor bằng báo cáo thu nhập thì bạn không có vấn đề.

Share with someone that could use some advice in this post or save some taxes
For every person you refer we’ll give you a free month or a gift card equal to 1 month of service of your referral – whatever is bigger! Up to to $600!
Anyone you refer gets a free month of bookkeeping!
THUT data capture technology extracts data from bank, credit card and online statements and allows for automatic bank reconciliation.
THUT uses artificial intelligence to locate and extract line item and tax summary data from receipts and exports it into a csv file.
Cleansing algorithms allow it to extracts transactional data that is 100% accurate.
Send us your prior financials and we will prove to you how our value is unrivaled in Canada.
➤➤➤

Bad Accountants & Management Fees

Willkommen to the first article on our series on terrible accountants and what you need to watch out for before they waste your money and time.

There is 1 of 3 ways to pay money out of an operating company:

  1. Repayment of shareholder loan (not an option when they were already repaid)
  2. Dividends based on shareholdings
  3. Management remuneration (based on fair market value of services rendered)

The shareholders of an operating company in Calgary wanted to pay themselves from their operating company in Edmonton (Op Co) and they paid themselves proportional to their shareholdings.  The 50% shareholder in Calgary took 50% of the payout while the 3 shareholders in Edmonton took 16.67% each.  They have done this consistently over the last 2 years.

The Chartered Professional Accountant (CPA) for the Calgary shareholder called yesterday and insisted that I amend 8 corporate tax returns and 14 GST returns to change the dividends to management fees.

I will have no part in such nonsense as the deductibility of management fees is often reviewed by the Canada Revenue Agency.

  1. Management fees must be invoiced detailing the services rendered at a fair market rate. The 50% payout his customer received is 3X the fair market rate of the actual management fees issued to the Op Co by our Edmonton shareholder.  How could this be possible, when the Calgary shareholder is in Calgary running a different Op Co?
  2. You can not simply invoice the Op Co more than a year later for a round $150,000 including GST with no periodic invoices consistent with the payments received.  The invoice should be the rate x the hours and subject to GST.  There should be a service contract between the Op Co and the shareholders and CRA will look for specific proof of how your management fees were determined. This means detailed descriptions of the work performed for the Op Co.
  3. If the Calgary Chartered Professional Accountant (CPA) got his way, anti-avoidance rules will kick in and the $150,000 management fees will be denied along with more than $50,000 in unnecessary taxes + penalties and interest on the avoided tax.  Arm’s-length management fees that do not meet the requirements of the sections of the Income tax Act can lead to double taxation for which no relief is available.
  4. All regrets in life involve wasted time. This is the only thing you can never get back so never waste a second giving people second chances.  Poor choices reveal poor character.

Below is a link to an article written by me detailing the reasons to use a holding company. This is how we can legitimately save taxes without breaking any laws and end up losing more than you ever bargained for.

Our goal at SwissBooks is to secure our customer’s future and the future of their loved ones. Our business offers comprehensive services to customers.  We will never sacrifice the long-term well-being of our customers for any ill-gotten short-term gains.   We will work with you to minimize your tax obligation, preserve and protect assets for future generations.  Accounting is beautiful a series of debits and credits that must balance.  There is no such thing as bad accounting- only bad accountants.

Like all people with no value, bad CPAs should be avoided at all costs.  Join my personal vendetta against all the bad CPAs in Canada that hide behind their designations or hide behind their high fees. Their customers automatically associate authority based on the high fees they charge. Bad CPAs: please start behaving or I will start lighting you up on this blog.

Upcoming topics for bad accountants:

  1. Inflating expenses to “minimize” your taxesfake accomplishment will bite you in the end. I know you can not compete with me, but putting your customers at risk by reporting bogus numbers should put you in prison. ($12,000 dollars of office expenses for a little shop that provides a beauty service? How much pens and papers can you buy for $12,000?)
  2. Paying employees as contractors: learn the difference
  3. Encouraging mindless spending to increase tax-write offsfake accomplishment. Congratulations! Your customer pays no tax; they will also be in financial ruin. Only acquire corporate vehicles or leases if they are required for conducting business.  Ferrying kids around to school? Personal. Get familiar with the metrics, keep business – business.
  4. “Investing” under $500,000 in individual stocks: inefficient waste of time. If you could beat my index fund your time is worth more working on Wall-Street.
  5. Franchises: not worth pursuing unless you are the franchisor.

We can’t be responsible for other accountants irresponsibility.  Our responsibility comes from 10 years of delivery quality, completing files on time, servicing memorably and saving our customers’ far more money in taxes than any small price difference.

Share with someone that could use some advice in this post or save some taxes
For every person you refer we’ll give you a free month or a gift card equal to 1 month of service of your referral – whatever is bigger! Up to to $600!
Anyone you refer gets a free month of bookkeeping!
THUT data capture technology extracts data from bank, credit card and online statements and allows for automatic bank reconciliation.
SwissBooks uses artificial intelligence to locate and extract line item and tax summary data from receipts and exports it into a csv file.
Cleansing algorithms allow it to extracts transactional data that is 100% accurate.
Send us your prior financials and we will prove to you how our value is unrivaled in Canada.
➤➤➤

Simple Swiss Steps to Success

Foreign demand for Alberta’s natural resources contributed to our current situation.  Even THUT Accounting became too specialized in providing the accounting to oil-field related businesses, leaving out the other sectors of the economy because of apathy.

Canada’s abundance of natural resources has interesting side effects. The trickle-down of wealth erodes productivity and created a nation dependent on Alberta.

Adaptability and productivity stay low while increasing costs, inflation, and unemployment.

Even if you don’t work directly for the oil-sector, you may be adversely affected if:

  1. an increase in your mortgage rate would hurt your finances
  2. your mortgage is more than 2.5-4 times your gross annual household income depending on how much you put down
  3. you don’t have any real skills and think you can succeed in business

The future will belong to:

  1. People who are the best at what they do through 90% doing & 10% learning.  Hone useful skills that allow you to deliver a service/product that people want and you can create opportunity regardless of the economic environment. Switzerland’s strong apprenticeship system has made it the most competitive country 7 years in a row.
  2. People with money. Strive to save 90% of your income.  Keep 90% of the above in investments and 10% cash. 12.7% of Switzerland’s population has a net worth over $1M vs. 1.4% in Canada.
  3. People who leverage technology. Online is the only path to scalability.  Switzerland has no resources but is ranked as the world’s most innovative country.

Paretoprinzip: Maximize the results by minimizing the stuff that doesn’t count:

  1. Don’t check your e-mail more than 3 times a day.
  2. Stop watching TV, surfing the net,  playing video games, and taking unnecessary vacations.  Make your own life great instead of engaging in escapism. The Swiss love outdoor adventure sport. Make your life so good you don’t need a vacation.  The only legitimate reason someone who is not financially independent should take a vacation is to visit family overseas.
  3. Trim your contact list – cut the complainers because chances are they already lost.

Switzerland has no natural resources, covered by inhabitable alps and can fit in between Edmonton and Calgary! Canada has 20% of the world’s fresh water but a Swiss company is the largest water brand in the world.

Share with someone that could use some advice in this post or save some taxes
For every person you refer we’ll give you a free month or a gift card equal to 1 month of service of your referral – whatever is bigger! Up to to $600!
Anyone you refer gets a free month of bookkeeping!
THUT data capture technology extracts data from bank, credit card and online statements and allows for automatic bank reconciliation.
THUT uses artificial intelligence to locate and extract line item and tax summary data from receipts and exports it into a csv file.
Cleansing algorithms allow it to extracts transactional data that is 100% accurate.
Send us your prior financials and we will prove to you how our value is unrivaled in Canada.
➤➤➤

Calculating Your Annual Advertising Budget

In order to logically budget for advertising, you must take into consideration the markup on your average sale and your rent. The presence that comes with rent is one of the best advertising your money can buy and should be taken into account in determining the budget.

  • The more time you spend on the road, the more you should spend on vinyl vehicle lettering.
  • The more inaccessible your location the more you should spend buying web traffic.Spend as much as you can on buying traffic! Margins may stay same or decrease but the only thing that matters is volume. Analyze conversion rates and adjust targeted demographics accordingly 30+ purchases for every 1,000 visitors and you are on track.  $10K in marketing/month and $5K in profit. Cut the marketing to increase margins? NO! Spend as much as you can spend until your business can afford to spend $10K/week and still profit $5K/week.

Assume that my business is projected to do:

  • $400,000 in sales this year  (value A)
  • a profit margin of 48% (value B)
  • my rent is $20,000 per year (value C)
  1. Calculate 9% and 10% of your projected annual gross sales (A x .09 = X) and (B x .10 = Y) [ X= $36,000 and Y= $40,000]
  2. Gross Profits: [A x B =Z] [400, 000 x 48% = $192,000]
  3. Markup %: [Z / (A – Z) = M] [192,000 / (400,000 – 192,000) = 0.9230 or 92.3%]
  4. Multiply X and Y by the markup % [X x M=X1] and [Y x M=Y1]  [36,000 x 0.923 = 33,228] and [40,000 x 0.923 = 36,920]
  5. Low figure: [X1 – C = L] [33,228 – 20,000 = $13,228]
  6. High figure: [Y1 – C = H] [36,920 – 20,000 = $16,920]

If you are currently a customer we can provide all of the figures above for you and assist you in your calculations of your annual advertising budget. If you are not currently a customer we would still love to hear from you!

Share with someone that could use some advice in this post or save some taxes
For every person you refer we’ll give you a free month or a gift card equal to 1 month of service of your referral – whatever is bigger! Up to to $600!
Anyone you refer gets a free month of bookkeeping!
THUT data capture technology extracts data from bank, credit card and online statements and allows for automatic bank reconciliation.
THUT uses artificial intelligence to locate and extract line item and tax summary data from receipts and exports it into a csv file.
Cleansing algorithms allow it to extracts transactional data that is 100% accurate.
Send us your prior financials and we will prove to you how our value is unrivaled in Canada.
➤➤➤

How do I apply for a business number (BN)?

 A business number (BN) is a common identifier for businesses in their dealings with the government. Each business, whether it is a sole proprietor, partnership, corporation, trust or other organization, requires one BN for it’s legal entity. Whenever you deal with the government you must provide your BN to identify the legal entity you are referring to. Just like when you provide your social insurance number to identify yourself when you call CRA or file your personal tax returns.

There are four major program accounts:

  1. RT – Goods and Services Tax/Harmonized Sales Tax (GST/HST) (see bullets below for reporting periods available)
  2. RP – Payroll
  3. RC – Corporate Income Tax
  4. RM – Import/Export

Registering for a business number for your business can be done online and is simple. Simply forward us a copy of your incorporation documents and ask us for a “Fiscal year-end recommendation” specifically for your business.

If you are registering for a GST number:

  • If your annual taxable sales are “$1,500,000 or less” your assigned reporting period is annual. Monthly or quarterly is optional but is not recommended (please contact us if you have any questions)
  • If your annual taxable sales are” $1,500,000 up to $6,000,000″ your assigned reporting period is quarterly with monthly reporting period being optional.
  • If your annual taxable sales are “More than $6,000,000” your  assigned reporting period is monthly.

Please click here once you are ready to register your BN through the Canada Revenue Agency’s website.

Share with someone that could use some advice in this post or save some taxes
 
For every person you refer we’ll give you a free month or a gift card equal to 1 month of service of your referral – whatever is bigger! Up to to $600!
 
Anyone you refer gets a free month of bookkeeping!
 
THUT data capture technology extracts data from bank, credit card and online statements and allows for automatic bank reconciliation.
 
THUT uses artificial intelligence to locate and extract line item and tax summary data from receipts and exports it into a csv file.
 
Cleansing algorithms allow it to extracts transactional data that is 100% accurate.
 
Send us your prior financials and we will prove to you how our value is unrivaled in Canada.
 
➤➤➤