Monthly Newsletter – January 2016 Issue
Happy New Year. As we begin a new calendar year, a few things to consider:
Backup
Ensure you backup your files regularly but also good to have a year end backup.
2016 Payroll
New 2016 payroll tax tables are now available on CRA web site and will be available for download from your accounting software by mid-January at latest. Ensure you download the new payroll tax tables for 2016 if you do your own.
Payroll Remittances
Your January payment is the last remittance for the 2015 calendar year. Ensure you are up to date with your remittances and that it is correct to avoid showing a balance due when filing the T4 summary in February.
Employment Related Expenses
Ask your employer to sign form T2200 if you were required to pay for employment related expenses that you were not reimbursed, such as car mileage, cell phone, etc.
Taxable Benefits
Beware of gifts/taxable benefits from employers that could cost you money. Good time to visit your HR person to discuss this and any payroll status updates for 2016.
2015 Receipts
If you are self-employed or have rental properties, now is a good time to find and summarize all your 2015 expense receipts, if you have not already done so. Note that receipts are required for all deductions, in case of audit.
2016 Books
Self-employed individuals often keep poor records. If your 2015 record keeping is causing you stress now, consider setting up a proper set of books for 2016 on QuickBooks. It can be fast and easy if trained properly. You can recap 2015 too.
Car Mileage Log
Reminder, start your 2016 car mileage log for car expenses. Keep track of odometer, distance traveled, destination, business reason, etc. to support business mileage.
HST Filing
Annual filers should have received the 2015 HST filing form with the access code. Keep this handy. Beware of your filing deadline to avoid penalties and interest. If you were required to pay HST installments last payment for 2015 is due January 31,2016.
Tax Free Savings Account (TFSA)
A new year means you can contribute $5,500 to your TFSA for 2016. If you have withdrawn funds from a TFSA check with your banker or accountant on rules if you want to put the funds back. Note that the limit for 2015 only, was $10,000.
This material is provided for general information and is subject to change without notice. Please consult with your professional advisor before you act on any of the above information to ensure it’s right for you.