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Reading Time: 3 minutes Below you will find a list of recommended daily bookkeeping tasks. You can bookmark this page for later reference, or download our printable version to
Reading Time: 3 minutes Below you will find a list of recommended year-end bookkeeping tasks. You can bookmark this page for later reference, or download our printable version to
Reading Time: 2 minutes Below you will find a list of recommended monthly bookkeeping tasks. You can bookmark this page for later reference, or download our printable version to
Reading Time: 3 minutes Self Employment Tax Vs Income Tax
Reading Time: 3 minutes If you are a business owner, then you have to pay your employees. This means that you have to worry about payroll taxes. These taxes
Reading Time: 4 minutes Whether it’s issuing invoices, logging expenses and reconciling bank statements, or identifying errors, bookkeepers play a critical role in the success of any business. Many
Reading Time: 3 minutes As business owners face more and more pressure to sustain through a shaky economy, many are realizing their current bookkeeping strategy is not longer tenable.
Reading Time: 3 minutes An important note: depending on the type of extension you are looking to file, you may need to submit additional forms. We highly recommend speaking
Reading Time: 6 minutes Businesses of all sizes require expert financial management to succeed. Deciding whether to hire an in-house accountant or an accounting consultant can be challenging. In
Reading Time: 4 minutes Year-end financial statements provide a detailed summary of a company’s financial performance. 60% of small business owners review their year-end financial statements for strategic decision-making.
Reading Time: 8 minutes If you’re worried you might have errors in your bookkeeping, or are concerned you might need an expert to take a look, you are not
As an international firm with offices in Houston and Toronto, our certified tax professionals can help you with US Tax compliance and tax consultancy for tax savings. We are here to help so contact us now.
Empower your organization by putting your finances to work. Our experts help you navigate urgent challenges and a fluctuating economy while improving shareholder value and maximizing business performance.
…or any US resident or citizen living anywhere else in the world, income tax returns need to be filed in the US using the customary Form 1040. This can be filed either separately or jointly (if married).
If you are employed by a US company in Canada, then you fall under the Canada US Income Tax Convention. This means that your employment income is exempt from taxation by Canada unless it is above $10,000 per year. If higher than $10,000, your income is exempt if:
The individual resided in Canada for less than 183 days in any Calendar year
The exemption is not borne by a Canadian citizen or a Canadian resident employer with a fixed base in Canada
If you are self employed US citizen/resident in Canada, aside from filing Form 1040 and Schedule C in the US to declare your worldwide earnings there are other things involved. Based on your current residence, you are required to either pay the US’s self-employment tax (15.3% for incomes up to $118,500) or Canadian Pension Plan (CPP) premiums to cover your social security taxes.
Whether you are considered employed or not in Canada is dependent on whether your primary work place falls under the definition of “Permanent Establishment” as per the Canada-US Tax Treaty.
As a proven resident of both countries, you are at risk for double taxation on your worldwide earnings if you are not careful. The Canada US Income Tax Convention provides solutions for this.
As a U.S citizen or resident alien having a tax home in a foreign country (i.e., place of business/employment permanently or indefinitely based in a foreign country) and meeting the criteria of either the Bona Fide Residence Test or Physical presence Test, you can elect “Foreign Earned Income Exclusion”.
Foreign housing cost is also excludable for payments made by an employer either on your behalf or as a reimbursement for incurred housing cost. This amount is taxable foreign earned income. (Availing this may in some cases offset your earned income exclusion).
Foreign Tax Credits (FTC): If you are a US citizen or expat paying foreign income taxes, the same foreign income will become a US tax liability. To alleviate that burden of 2-country double taxation, you are provided with appropriate tax credits on your US tax liability.
For assistance in planning and transferring your U.S. assets to Canada, please contact our colleague Phil Hogan, CPA, CA, CPA at (25) 661-9417 or phil@philhogan.com
