Accounting Services, Vancouver
January 6, 2019

New Tax Changes for 2019

 2019 Tax Changes Impacting Small Businesses & the Self-Employed

With a new year, comes new tax changes at the federal level. What does this mean for you personally, or your business? Individuals may notice some changes to their paycheque, but as some taxes/premiums are increasing & others are decreasing, these changes should be slight. The majority of these changes will be affecting small business owners, and those who are self-employed.

 Let us summarize a few of the major changes for you:

  1. Small Business Tax
    • The small business tax was reduced by 1% (from 10% to 9%), which will most likely benefit small businesses that make less than $500,000 annually. However, businesses that hold more passive income (ex. held savings, real estate, stocks, bonds) will have to pay a substantially higher corporate tax rate as they will be taxed more heavily.
  2. Canada Pension Plan Premiums
    • As of January 1st, there will be an increase in Canada Pension Plan premiums. You may notice this coming off your pay cheques in 2019 and beyond, as the Canadian government increases these premiums over the next seven years to enhance pension plans. So for example, an individual with earnings of $54,900 will contribute about an additional $75 per year as of  2019. This will affect those already paying into CPP, and the aim is that you will gradually pay more now, to receive more later on.
  3. Employment Insurance Premiums
    • These premiums have decreased, and are now 4 cents less for every $100 insurable dollars. Specifically, the drop is from $1.66 to $1.62, an all-time low in 40 years. The amount that employers contribute is also reduced.
  4. Low Income Workers
    • Low income workers can now qualify for the Canada Worker’s Benefit, but will not see this compensation until 2020.

Overall, some of these changes, especially those for small business owners, may be confusing. They have not been communicated overly well, and many business owners are wondering if and how it might affect them, and what they need to do come tax time, for payroll, year ends, etc. Cahill CPA is up-to-date on these new changes for 2019, and is happy to go over any questions you might have.

 Come visit our office, located in Central Lonsdale North Vancouver, or give us a call 1-604-985-0123. One of our chartered accountants will be happy to help!

 Sources:

CTV News: Tax Changes take effect as 2019 begins

Global News: Tax Changes, CPP, EI & Small Business

 

Jordan Cahill

Jordan Cahill is a Chartered Accountant (CA) and Chartered Professional Accountant (CPA) with a bachelor degree in business from Simon Fraser University. He articled at a national CA firm in Vancouver,BC and previously held a position at the Canada Revenue Agency as a business auditor.

Services

    Cahill-Professional-Accountants-Light-Logo-573px

    Your Success Is Our Business

    Financial accounting, tax preparation, and much more.

    North Vancouver 604-985-0123

        

    More About CahillMap to Locations

    Review Us on Google-White

    Inquire Here

    Looking for a North Vancouver certified accountant? We specialize in helping clients grow their businesses through tax minimization and sound business advice.

    Name*
    Invalid Input

    Phone*
    Invalid Input

    Email*
    Invalid Input

    Message*
    Invalid Input

    Invalid Input