The deadline for RRSP and TFSA are fast approaching (Feb 29, 2012) and many of our clients want to know whether it is more beneficial to contribute to an RRSP or TFSA. While the two investment vehicles are completely different they both have benefits. Before we determine which path is best it is worthwhile to understand the pros and cons of each

In most situations ca4it clients declare a bonus to directors of the corporation only once a year (typically on December 31). Throughout the year Directors may access funds from the corporate bank account to pay for expenses on behalf of the organization. However, the tax planning is done once a year during the review meeting and a one time bonus is paid. This means that source deduction only need to be paid once a year (either January, 3, 10 or 15 depending on your Remitter type). This is different from many other firms that would declare a salary on a monthly basis and requires monthly sourced deduction remittances.

As a corporation, you have to remit the CPP contributions, the EI premiums, and income tax deducted from your employees’ income, along with your share of CPP contributions and EI premiums.

These deductions, along with the remittance form, must be received by CRA on or before your remittance due dates. Due dates vary depending on the type of remitter you are.

  What is Personal Services Corporation (PSC) risk? This video answers the question “What is personal service corporation risk?” If you are a independent consultant or IT contractor and earn more than $40,000 per year or you are going through a CRA Audit, This is a must watch video. Please view the following pages for [...]

  What is the Personal Services Business Risk? Are you concerned about a CRA Audit? This video answers the question “What is personal service business risk?” If you are a independent consultant or IT contractor and earn more than $40,000 per year or you are going through a CRA Audit, This is a must watch [...]