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In this blog post, we will outline upcoming tax changes for 2025 and personal, self-employed, and corporate tax deadlines for 2025. A reminder about the upcoming tax deadlines in the new year: •Individuals: April 30, 2025. •Self-Employed: June 16, 2025 (taxes due April 30). •Corporations: 6 months after fiscal year-end. If you want to know more about Canadian Tax Changes and Deadlines for 2025 click here: https://lnkd.in/ezZkPeTH

In this blog post, we will outline upcoming tax changes for 2025 and personal, self-employed, and corporate tax deadlines for 2025. A reminder about the upcoming tax deadlines in the new year: •Individuals: April 30, 2025. •Self-Employed: June 16, 2025 (taxes due April 30). •Corporations: 6 months after fiscal year-end. If you want to know more about Canadian Tax Changes and Deadlines for 2025 click here: https://lnkd.in/ezZkPeTH

A Guide to Canadian Tax Penalties Types of Penalties: 1. Late Filing Penalty: Charged for not filing on time. 2. Late Payment Penalty: Charged for missing tax payments. 3. Installment Penalty: Charged for missed installment payments (to be covered later). Individuals: •Filing Deadline: April 30. •Late Filing Penalty: 5% of the owed balance plus 1% for each month late (max 12 months); increased for repeat offenders. •Late Payment Penalty: Daily interest based on CRA’s prescribed rate. Corporations: •Filing Deadline: 6 months after year-end. •Penalties: Same structure as for individuals. Example: ACME Inc. with a $30,000 tax bill incurs $3,000 in late filing penalties and $442.80 in late payment interest. Trusts: •Filing Deadline: 90 days after year-end. •Penalties: Similar to corporations. GST/HST: •Filing Deadline: 1 month (monthly) or 3 months (annual). •Penalties: 1% of the balance owed, plus 25% for each month late. Empower yourself with the knowledge to stay compliant and avoid unnecessary stress. Read more here 👉 https://lnkd.in/eu7amP4E

How Employment Insurance (EI) Works for Business Owners Key Differences: Business owners with more than 40% share and self-employed individuals can opt into Employment Insurance (EI), while employees are required to contribute. Notably, incorporated business owners and self-employed Canadians are ineligible for EI benefits related to job loss. However, they can claim special benefits such as maternity, parental, sickness, compassionate care, and family caregiver benefits. Exemption from EI Contributions: By default, business owners and self-employed individuals do not need to contribute to EI unless they choose to opt in. To access any benefits, they must pay EI premiums for a minimum of 12 months and cannot opt out after enrolling. Family Members’ Premiums: If family members work in a business and are not at arm's length with the employer, their earnings are not insurable, meaning no EI premiums are required. Recovering Overpaid Contributions: Business owners can recover overpaid EI contributions by submitting form PD24 to the CRA within three years of the overpayment. EI Premium Requirements: If they opt into EI, business owners only pay the employee portion of premiums, which is capped at $1,049.12 for 2024. How to Register as Self-Employed: To register, visit Service Canada’s EI page for self-employed individuals, log into or create a My Service Canada Account, and complete the registration form with personal and self-employment details. Business owners must agree to terms, including paying premiums for at least one year before claiming benefits. Once registered, they start paying EI premiums based on their income when filing taxes. Curious about How Employment Insurance Works for Business owners? Dive deeper into our insights and resources! https://lnkd.in/g6awhmpW

What is EI? Employment Insurance (EI) provides temporary financial assistance to unemployed Canadians and those on leave for family or health reasons, funded through payroll deductions. How EI Works: •Employee Contributions: Deductions of up to $1,049.12 in 2024. •Employer Contributions: Employers pay 1.4 times the employee's amount, up to $1,468.77. Eligibility and Benefits: Unemployment Benefits: For those who lose jobs through no fault of their own, covering 55% of average weekly earnings (up to $650/week). Special Benefits: •Maternity Benefits: For pregnant employees. •Parental Benefits: For new parents. •Sickness Benefits: For illness. •Compassionate Care Benefits: For gravely ill family members. •Family Caregiver Benefits: For critically ill relatives. Application Process: Apply online via Service Canada, providing personal information and supporting documents. Payments are made bi-weekly. Duration of Benefits: Typically lasts 14 to 45 weeks, based on insurable hours and regional unemployment rates. Tax and Compliance: EI benefits are taxable and must be reported. Non-compliance may lead to penalties and repayment obligations. If you're interested in exploring this topic further, feel free to click the link below! https://lnkd.in/e6fM-5H9