"Your Source for Small Business Solutions"

SPRING Newsletter 2006 Volume 6  

NEW PAYROLL TAX TABLES EFFECTIVE JULY 1, 2006

Summer is approaching, and with the start of summer holidays, there is generally also a payroll tax table update released by the Federal Government.  This July is no different.....

On May 15, 2006 the Federal Government released it's new tax tables which apply to all payments made after July 1, 2006.  Only a few minor changes, but necessary to update your payroll software before you prepare your first set of payroll cheques after July 1,2006.

Please note that some software programs require manual updates of these figures, even after downloading the payroll updates they provide.

Updated Rates

THE NEW GST RATE - HOW WILL IT AFFECT YOUR BUSINESS?

One of the campaign promises of the Conservative Platform in the last Federal Election was a reduction in the GST rate.   Although most Canadians are looking forward to its implementation, as a business owner there are changes that must be made in your POS and Accounting systems to accommodate this rate change.  There are also guidelines as to what rate of GST you need to remit if your transactions overlap the implementation date.

Effective July 1st, 2006 the GST rate will be reduced to 6% and the HST rate to 14%.

Read More

RECORD KEEPING FOR REVENUE CANADA - DON'T THROW OUT THOSE PAPERS YET!

Now that you've survived another tax season, can you clear all those papers straight into your shredding machine?  Unfortunately not.  Not only does Revenue Canada (CRA) have the authority to not only collect taxes but are able to enforce how long you have to retain those records.

Avoid the hassles that could arise if you don't have the documents CRA requires.

Read CRA's Guidelines on How Long You Have to Retain Your Records

Dates to Remember:

June 15 -  Deadline for Tax Return Filing for Self Employed Persons

June 15 -  2nd Tax Installment Due for Personal Taxes

July 1 -  New Release of Payroll Tax Tables

July 1 -  Reduction in the rate of GST/HST

Dec 31 -New CPA Rules Take Effect for all Cheques

Thought for the Month:

Dreams void of strategy are just illusions.

-Unknown

Resources on our Website:

• Small Business Owner Vacation Guide

• Canadian Marginal Tax Rates

Be sure to visit our RRSP Centre for:

• FAQ about RRSP's

• RRSP Contribution Limits