It’s no secret that the future of business is changing. What might not be as well known is how quickly new technologies and regulations in Canada are impacting accounting and bookkeeping services. Accountants and bookkeepers need to be on the cutting edge of innovation to keep up with these changes, but many don’t know where to start.

That’s why we’ve partnered with Dext — a leading accounting solutions provider — to examine how creativity can lead to innovation in the accounting and bookkeeping space. For this four-part series, Kevin Durham from Dext talked to Sean Duffy, Senior Manager at Elevate by Welch, about his mission to bring innovation into the mainstream of accounting services.

The discussion centered around innovation, changing business models, technology and how to position yourself for success in the future. Sean Duffy discussed how technology is not only changing how businesses operate but also changing the workplace as we know it.

Part 1: What Does Innovation Mean to Canadian Accounting and Bookkeepers? Click HERE to read

Part 2: How do you lead Innovation at your Firm? Click HERE to read

Part 3: Defining Success in Innovation. TO BE RELEASED SHORTLY

Part 4: To be announced shortly

#Doge To The Moon! So, you invested in crypto. By most accounts, you are not alone. And while this is a hot topic, many people still don't fully understand and grasp the consequences of investing in cryptocurrencies. The guides on Reddit and the internet just don't explain everything you need to know. So, we created this easy-to-read guide to help anyone who is either just about to buy their first crypto investment or are looking at diversifying their portfolio.

What's all the buzz about?

Cryptocurrency has become one of the hottest investment options in the last year. Many people are attracted to the exciting potential of this pioneering, decentralized technology. However, there is one major thing holding people back: The Unreliable Income Tax Conundrum.

For tax purposes, crypto is not currency. Crypto is property and a business asset (like stocks). The CRA has issued guidance on how taxpayers should report transactions involving virtual currency. When you buy or sell cryptocurrency, it's taxable just like most property transaction.

Taxes For Cryptocurrencies

Cryptocurrency creators (Bitcoin, Dogecoin) set up these currencies as systems separate from any central bank, central authority, or government influence. However, cryptocurrencies are still considered commodities for the purposes of the Income Tax Act.  In other words, when you receive Dogecoin and use it to purchase goods or services, the CRA considers this as a barter transaction. The CRA requires you to report any earnings or losses from these transactions on your income tax return.

The Key Tax Questions

How do I calculate capital gains or losses?

When you sell a cryptocurrency for more than what you paid, the difference is considered a capital gain. If you sell for less, then this difference is considered a capital loss.

If you are the one who has sold a cryptocurrency for more than what you paid, then you owe taxes on this capital gain. If you are the one who paid less, then this is considered a capital loss. Capital losses are deductible against other capital gains.

What if I bought a cryptocurrency from someone else?

When you buy a cryptocurrency, either directly or indirectly from someone else (for example, on an exchange), then the CRA treats this as a barter transaction. Since the value of the cryptocurrency has increased, any capital gains will be realized on the date you sold it.

If you are the one who bought the cryptocurrency and sold it for more than what you paid, then you owe taxes on this capital gain. If you are the one who paid less, then this is considered a capital loss. Capital losses are not deductible on your tax return like income losses.

What if I trade cryptocurrency for another type of cryptocurrency?

When you trade one cryptocurrency for another type of cryptocurrency, the CRA considers this a barter transaction. Since the value of the cryptocurrency has increased, any capital gains will be realized on the date you sold it.

If you are the one who traded cryptocurrencies for another type of cryptocurrency and sold that one for more than what you paid, then you most likely owe taxes on this capital gain. If you are the one who paid less, then this is considered a capital loss. Capital losses are not deductible on your tax return like income losses.

Let’s look at some examples pulled from the CRA’s Guide for cryptocurrency users and tax professionals:

Let’s move along into other aspects of cryptocurrency.

Crypto mining

Crypto mining is the process of verifying transactions on a blockchain ledger by solving mathematical problems. In this way, a miner creates new cryptocurrency, which is then added to the digital ledger.

To mine cryptocurrencies, you need a powerful processing unit like an ASIC, or Application Specific Integrated Circuits. The processing power that ends up being used for this purpose is called hashing power (commonly expressed in megahashes per second). The faster your computer can compute hashes, the better chance you have of earning more bitcoins or other cryptocurrencies.

When it comes to cryptocurrency mining, it's a good idea to keep your capital loss and income loss separate. Capital losses can be used to offset capital gains, while income losses are deductible against any type of taxable income.

OK. So, what about taxes when earning cryptocurrency?

“The income tax treatment for cryptocurrency miners is different depending on whether their mining activities are a personal activity (a hobby) or a business activity. This is decided case by case. A hobby is generally undertaken for pleasure, entertainment or enjoyment, rather than for business reasons. But if a hobby is pursued in a sufficiently commercial and businesslike way, it can be considered a business activity and will be taxed as such.” - from the CRA’s Guide for cryptocurrency users and tax professionals

Individuals who are income tax residents of Canada are taxed on their worldwide income, including any income earned from cryptocurrency mining. Be aware that due to the large fluctuations in daily activity across trading platforms, tax authorities may take the average of the opening and closing values of the day, and also average values across a number of major exchanges.

What is income tax for business activity and does it apply to my mining operation?

The Income Tax Act describes income as the total of all amounts, monetary or not, that a person receives for any purpose. What this means is that all amounts are subject to income tax, even if there is no cash involved. This applies to cryptocurrency mining.

Since every business activity has to report income and expenses, the first step in determining your tax liability is to determine whether your cryptocurrency mining activity is a business activity or not. Therefore, you need to determine whether:

Your cryptocurrency mining activities are carried out in a sufficiently commercial and businesslike way; and You have acquired the necessary skills and knowledge that would allow you to carry on these activities as a profession or business.

What is the income tax treatment for crypto miners?

The CRA has indicated that cryptocurrency mining is a taxable business for Canadian tax purposes due to the fact that miners generate revenue from the sale of cryptocurrencies.

For additional information on how you can calculate your mining expenses and determine what kind of income tax treatment you should receive, please contact us today.

What about GST/HST?

From the CRA's Guide for cryptocurrency users and tax professionals:

"Where a taxable property or service is exchanged for cryptocurrency, the GST/HST that applies to the property or service is calculated based on the fair market value of the cryptocurrency at the time of the exchange.

If your business accepts cryptocurrency as payment for taxable property or services, the value of the cryptocurrency for GST/HST purposes is calculated based on its fair market value at the time of the transaction.

Keep all records that show how you calculated the fair market value."

For additional information on how you can calculate your GST/HST, please contact us today.

What about bookkeeping?

"If you acquire (by mining or otherwise) or dispose of cryptocurrency, you have to keep records of your cryptocurrency transactions. This also applies to businesses that accept cryptocurrency as payment for goods and services." - from the CRA Guide for cryptocurrency users and tax professionals

From the same CRA guide, please see below:

You should maintain the following records on your cryptocurrency transactions:

If you are a miner, also keep the following records:

To sum up, the CRA expects you to keep track of all your cryptocurrency transactions. Get in touch with us today should any of the above speak to you - or if you just need help with understanding your specific situation. If you would like to learn more about how Elevate by Welch can help with bookkeeping and tax services for cryptocurrency, contact Sean at sduffy@welchllp.com

Disclaimer:

The information contained in this article is for general purposes only. It does not constitute legal or tax advice and is not intended to provide specific answers for any individual situation.

In this series of posts, we will explore core bookkeeping and accounting concepts. Have you ever wondered who invented the double-entry system of bookkeeping? Do you want to know how to keep track of your finances and expenses? How to set up your bookkeeping system? You'll be glad to know that you can learn how in this series.

Where to start?

The first step is always the same: register for a reputable bookkeeping software. Though they vary in price, features, and style, they all provide more or less the same things: they help keep track of your transactions and make managing them easier.

The next step is to start using the software. This requires studying the documentation, spending some time reading blogs about bookkeeping and even typing the transactions you already have committed to memory a couple of times.

Then, your final step is to create your accounting system. Write down all your purchases/sales and all your expenses in a notebook/document where you can always refer back to them, should you need to. This may seem tedious at first but it actually helps save time later on, as knowledge of past transactions develops speed and efficiency. Understanding your system will take time, most bookkeepers say it takes an average of 2–3 months to fully get the hang of it. You may even have to consult one of the experts who have already done all the tedious and labor-intensive work for you: accountants and bookkeepers.

Most importantly, focus on building your knowledge about accounting and keep doing that daily. You can never know enough and you will always need to refresh your memory.

This blog series is written especially with the beginner in mind. It doesn't mean that experts won't find it useful; on the contrary, expert bookkeepers often find it hard to understand why someone would want to take on bookkeeping without first learning a few things about it.

The 5 most important tips for beginners

#1 - Understand the importance of using a bookkeeping software

Many people make the mistake of starting to manage their finances without setting up a functional and organized system which will help them keep track of everything, as well as organize their financial processes. You wouldn't try to build a giant house without blueprints, would you?

#2 - Take your time with it

The idea that bookkeeping can be learned very quickly is quite common. But truth is it takes time and dedication to learn. A good bookkeeper or accountant can be hired to do all the grunt work for you, unless you have a special interest in the subject like many people do.

#3 - Focus on building your knowledge about accounting and keep doing that daily

You can never know enough about bookkeeping and there are always new things to learn, so build an effective learning routine that works for you.

#4 - Don't forget to read other blogs about bookkeeping

They are an excellent source of information and tutorials, as well as a place where you can ask questions about your financial process, which is very useful if you want to improve your skills.

#5 - Not for you?

This may be the most important tip of all: leave it to the pros. Reach out to us and let us know how we can help. Let us focus on your finances so you can focus on what you do best: running a successful business.

After all, we can't do what you do. But we can definitely take care of what you don't want to do or don't have the time for. Bookkeeping and accounting are essential parts of any financial system and as such should be taken seriously.

Never underestimate the importance of bookkeeping in the success of your business, no matter how big or small it is. Build a plan that works for you, keep your focus and go after it.

Stay tuned to this series for information on some recent technological changes which are underway. Curious about innovation in accounting? Ask one of our Cloud-Bookkeepers how their careers have evolved over the last few years.

If you would like to learn more about how cloud-based bookkeeping and accounting services can help elevate your business in 2021, contact Sean at sduffy@elevatebywelchllp.com

More from the Bookkeeping & Accounting series

Keep an eye out for the paper airplane taking off from the green runway for our next piece in the series.

It’s no secret that the future of business is changing. What might not be as well known is how quickly new technologies and regulations in Canada are impacting accounting and bookkeeping services. Accountants and bookkeepers need to be on the cutting edge of innovation to keep up with these changes, but many don’t know where to start.

That’s why we’ve partnered with Dext — a leading accounting solutions provider — to examine how creativity can lead to innovation in the accounting and bookkeeping space. For this four-part series, Kevin Durham from Dext talked to Sean Duffy, Senior Manager at Elevate by Welch, about his mission to bring innovation into the mainstream of accounting services.

The discussion centered around innovation, changing business models, technology and how to position yourself for success in the future. Sean Duffy discussed how technology is not only changing how businesses operate but also changing the workplace as we know it.

Part 1: What Does Innovation Mean to Canadian Accounting and Bookkeepers? Click HERE to read

Part 2: How do you lead Innovation at an Organization? TO BE RELEASED SHORTLY

Part 3: Defining Success in Innovation. TO BE RELEASED SHORTLY

Part 4: To be announced shortly

"If you can dream it you can do it." Tom Fitzgerald coined this, not Walt Disney. Accounting & Bookkeeping is not a fairy-tale story. It's a profession that involves numbers that have real-world implications, for me, this is what makes it interesting.

I often think about what inspired that statement. Was it the love of life and family? The hope that we have inside us to be successful no matter what our situation is? Or was it the belief that with hard work anything is possible? Who knows, but Tom Fitzgerald knew what it would take. And so do I.

Let's meet Monica Valbuena:

#1 - What do you enjoy doing when you are not working?

Spending time with my family.

#2 - What was your favorite TV show as a kid?

The TV show Friends.

#3 - What is the best advice you have ever been given?

Always finish what you start.

#4 - How do you like your coffee?

Strong and black.

#5 - What are the values that drive you?

Honesty and professionalism.

#6 - What is something clients have to deal with that you want to fix?

Bookkeeping is a sort of open input system and mistakes are made. Mistakes can affect the entire process and end up costing a company thousands of dollars. It's important to have a process in place that monitors the bookkeeping and accounting processes so they can be started on time and finished on time.

#7 - What do you like about working at Elevate by Welch?

It's very exciting working around numbers, analyzing data, and making sure things are correct. I also get to see people succeed as much as they do. The accounting process is an important part of many business operations, so it’s important to make sure it’s worked well.

#8 - How would the bookkeeping profession change if you could see the future? Anything specific?

I don't know for sure, but I can imagine that bookkeeping would be used more in the financial and medical fields. I think that the number of people working in accounting and bookkeeping should increase as technology changes.

#9 - Do you have any ideas for a business book? Anything that inspired you?

This is a great question. I always try to include the basics of accounting as well as business practices. Everyone moves into their own field, not just accountants. In my story, Monica is a bookkeeper and it is relevant to her work. As for something inspiring, I think there are many stories out there of what makes an individual successful and being passionate about what they do is very important.

#10 - How many years of experience do you have in your profession?

I’ve worked more than 10 years in my career and still love what I do every day. I’m sure there is something else out there that would interest me, but right now, this is where I want to be.

#11 - What's the best thing about your job?

The people I work with are very special. It's a team effort; we all encourage one another to be the best we can be.

Let's finish it off on a light note:

#12 - If you could have one wish, what would it be?

To help others and work on improving the world.

#13 - What is the most important life lesson you have learned?

Follow your dreams. You can do it. Just follow your passion and love what you do, and keep your mind open to new ideas. You never know where they might take you...

#14 - Which was your least favorite pet?

A rabbit.

#15 - Who was your first celebrity crush?

Leo DiCaprio.

#16 - If you could have one wish, what would it be?

To make a difference in the world.

#17 - If you could meet anyone in history, who would you meet?

I’d love to meet Leonardo da Vinci. His work is life-changing and he is truly amazing. He made beautiful things that changed history. Something about him just inspires me.

#18 - And finally, which superpower would you want?

Teleportation as I’d go to a beach in Aruba.

Bookkeepers are the unsung heroes of businesses, yet they are always present and look out for their clients best interests. They look at numbers not with dollar signs attached but with numbers not as just a source of income or profit margin, but as an important way to measure how we live our lives.

Elevate by Welch is committed to providing bookkeeping solutions for businesses throughout Canada.

With these insights into Monica's world, we hope you get a taste of who she is and the enthusiasm she brings to her work. The best way to get in touch with Monica is emailing her here mvalbuena@welchllp.com

“Life moves pretty fast. If you don't stop and look around once in a while, you could miss it”, says Melanie, quoting Ferris Bueller. Why is this such a great quote? It takes a sombre look at life and reminds us that we never know what will happen tomorrow.

This is the perfect attitude to adopt, as Melanie Aumont, a qualified bookkeeper with over 10 years experience, reminds us that life should be lived for the moment. Melanie started her career in bookkeeping and has never looked back. “It’s as if I’ve been born to do this job!” she exclaims.

Let's meet Melanie:

#1 - What's your earliest childhood memory?

I remember being at the zoo with my dad. I was probably around 4 and it must have been our first trip there because I distinctly remember being so excited to see all the animals, but being disappointed when we couldn't take them home.

#2 - What's your favorite Podcast?

My favorite podcast is The Ongoing History of New Music by Alan Cross because he tells amazing stories about the history of music.

#3 - What's your favourite book?

The Davinci Code by Dan Brown. The story is so rich and interesting, and I love how the plot is composed.

#4 - What is your favourite movie?

I have to admit, I’m very much a movie person. Some of my favourites are The Princess Bride and Back to the Future.

#5 - What is your favourite thing to do on a lazy Sunday?

I love to spend a relaxing Sunday morning reading and drinking coffee. I also really enjoy knitting while watching HGTV.

#6 - What is your favourite drink?

I’m not such a big drinker, but on hot days I love a nice Shirley Temple.  

#7 - What do you enjoy doing when you are not working?

I’m a mom of 2 boys and love spending time with them, whether it’s building Lego, play Nintendo Switch or riding bikes. This pandemic has certainly brought us closer together. In all of my other spare time, I love knitting and sewing (check out my projects here @cozycochonhandmade  @sewmelticulous ).

#8 - What is something clients have to deal with that you want to fix?

I love the trend of ditching the need to print everything. I’m excited about the new technology and apps available to make it easy to transition to a paperless business environment. 

#9 - What do you like about working at Elevate by Welch?

I love the team atmosphere and communication. Every day we have conversations about how we are going to achieve our goals and our clients’ goals. It’s a great way to stay focused on what is important.

#10 - How would the bookkeeping profession change if you could see the future? Anything specific?

I think that there will always be an element of chance with bookkeeping, but I think we will see more technology available to help us do our jobs better. The internet is also going to change people’s lives every day in a big way because they can communicate better and more easily than ever before.

Let's finish it off on a light note:

#11 - Who was your first celebrity crush?

Thanks to Titanic, Leo DiCaprio. And still is, I think! 

#12 - If you were put in charge of a country for a day, what country would you choose?

Croatia as it is today is one of the most beautiful countries in the world, and I would love to be able to take care of it for the day.

#13 - If you were given a time machine, when and where would you go?

I’d love to go back and see what life was like during the Renaissance period.

#14 - And finally, which superpower would you want?

I think I’d pick telepathy to read people’s minds. Would make life much easier!

#15 - Who is your favourite super hero?

Captain Jack Sparrow, from the Pirates of the Caribbean movies… he’s just so cool!

Bookkeepers are the unsung heroes of businesses, yet they are always present and look out for their clients best interests. They look at numbers not with dollar signs attached but with numbers not as just a source of income or profit margin, but as an important way to measure how we live our lives.

Elevate by Welch is committed to providing bookkeeping solutions for businesses throughout Canada.

With these insights into Melanie's world, we hope you get a taste of who she is and the enthusiasm she brings to her work. The best way to get in touch with Melanie is emailing her here maumont@welchllp.com

“If you are going through hell, keep going”, said Winston Churchill. The same mantra applies to bookkeeping, says Anita Nadeau. “You have to keep going, you have to stay focused on the big picture”, she adds. This inspirational quote has led her to pursue multiple career paths, from being an entrepreneur to helping other business owners with their finances as a bookkeeper. She has been working as such for the past 30 years and is dedicated to supporting other bookkeepers and helping them achieve success.

When asked how she feels about her job, Anita replied, "I really enjoy what I do as a bookkeeper because I am very analytical and love numbers." Also, she said that she is very proud of the work that she has accomplished. “I love seeing all the hard work paying off for my clients”, Anita says.

Let's meet Anita:

#1 - What's your earliest childhood memory?

Dancing with my brother to “A Hard Day’s Night” by the Beatles.

#2 - What's your favorite book?

Shakespeare’s Julius Caesar. I enjoy the political aspect of the play and how it could be interpreted today.

#3 - What's your TV Series?

The Crown because it depicts the lives of the British Royal Family during their prime and it's very interesting to see how their political and personal lives intertwined.

#4 - What's your favorite drink?

A Malbec with a steak dinner.

#5 - What are some of your hobbies/interests?

I am an avid reader and love to hear other stories. I also love to be around people, so being a bookkeeper has helped me meet all kinds of people from all walks of life.

#6 - What's your favorite thing to do in your free time?

Coffee shop hopping! I just love finding a great place to work on my laptop and enjoy a relaxing cup of joe.

#7 - What was your favorite subject in school?

English and I’m still a bookworm.

#8 - What do you think is the most underrated virtue?

Honesty.

#9 - What’s one thing most people don’t know about your job?

Bookkeeping really is a “people’s job”. You have to be patient and enjoy helping people. I love meeting new people and that's one of the perks of what I do.

#10 - What’s the best piece of advice you’ve ever received?

I am a huge believer in the saying “work smarter, not harder”. That being said, I must also say that you have to stay on top of your accounting and bookkeeping. It is essential to monitor your income and expenses on a weekly basis to make sure that you are not over or losing money. Also, I think it's important to read through your tax documents at least once a year to make sure that all the information is accurate, especially given our current tax laws.

#11 - Why is bookkeeping important for small business?

Bookkeeping is an essential part of a small business. The bookkeeper keeps track of all the finances of the company and ensures that all transactions are correct. Without good records, it is difficult to prove that you have stayed within budget or exactly what your expenses are. A good bookkeeper helps make sure that the business has the tools and resources it needs to be successful.

#12 - What's your work routine like?

This varies depending on the job, but in general I try to get to my work every day at 8:30 AM so I can have a productive day starting out.

#13 - What's your favorite thing about working at Elevate by Welch?

Elevate is the most positive, inclusive company I’ve ever worked for. The environment is friendly and accepting. I can be myself and that makes me a better bookkeeper.

#14 - What are some skills every bookkeeper should master?

I think they should be able to do basic math and have a sense of urgency. There may be urgent needs that come up during the course of a day that end up delaying your schedule and can throw you behind. So being able to handle these challenges is imperative.

Let's finish it off on a light note:

#15 - What's the weirdest thing you've ever eaten?

Haggis and Blood pudding pizza, delicious.

#16 - Who was your first celebrity crush?

Captain Scarlet (but not the Mysterons).

#17 - If you had a magic ring, what would be your first wish?

I’d wish for world peace. There is no easy way to do this and I know it’s not going to happen overnight, but it does help to start small and get people at least talking about solutions.

#18 - Where are your favorite places to visit?

Alaska is my favourite place in the world. It’s a very special place. The best way I can describe it is that once you set foot on the ground there, you never want to leave; and it sets such a wonderful energy that it makes me feel alive.

#19 - And finally, which superpower would you want?

Time travel because then we wouldn’t be stuck in the same loop and I could travel the world a little more, actually get my hands dirty and bring meaningful change.

Bookkeepers are the unsung heroes of businesses, yet they are always present and look out for their clients best interests. They look at numbers not with dollar signs attached but with numbers not as just a source of income or profit margin, but as an important way to measure how we live our lives.

Elevate by Welch is committed to providing bookkeeping solutions for businesses throughout Canada.

With these insights into Anita's world, we hope you get a taste of who she is and the enthusiasm she brings to her work. The best way to get in touch with Anita is emailing her here anadeau@welchllp.com

Change is constant in our ever-evolving world, but one thing is for sure: women around the world are making their voices heard, stepping up, and leading the change. Caroline Proulx, Onboarding Manager at Elevate by Welch, is one of these outstanding women.

Chosen as a Top 50 #WomeninAccounting for 2020, it’s obvious why Caroline was a top choice. This list celebrates all the amazing women who are driving advocacy and creating opportunities in the Accounting and Bookkeeping industry. Caroline hits all of those points:

  1. Dedicates and promotes inclusivity and diversity in the workplace and beyond;
  2. Invests in the next generation and the future leaders of accounting;
  3. Advocates for the accounting industry and support of the wider community.

“I am truly committed to making this happen because I believe in the path that Welch and I are carving out for me and others. My hope is to showcase Elevate and Welch as a fantastic place for women to work and thrive, and give us something to be proud of

"The profession is becoming more diverse, thanks to the increased number of female students and graduates. However, we have yet to see a greater representation of women in senior accounting positions."

Professionals were included on the list based on their written submissions, promotion of inclusivity and change in the profession, investment in future accounting professionals, and their involvement with causes both inside and outside the profession.

For the full list, visit Practice Ignition’s site here:

https://www.practiceignition.com/blog/top-50-women-in-accounting-2020

The International Film Festival of Ottawa in its first year, brought film and filmmakers together for a few days in March to celebrate and explore the art, craft, and social impact of cinema.

The art & science of filmmaking has exploded in popularity in recent years. Moviemaking is capable of producing engaging, emotional, and sweeping stories and can come in many forms such as a motion picture, a television series, or a documentary. And yet, the industry is still a business.

It is the primary responsibility of the producer to get a film through its life cycle, from a director's idea to final creation. For this reason, it is important that anybody looking into filmmaking understand these important aspects: budgeting, funding, tax credits, cash flow and legal considerations.

With the upcoming soundstage that the City of Ottawa is building bringing more jobs in film to our nation's capital, a panel on the business of filmmaking provided invaluable insight into the role of a producer.

Sean Duffy was joined by Nicole Rogers from Welch LLP. As moderator, she added invaluable insight into the business of filmmaking as we got to hear from the following panel:

Jessica Adams, Producer, JA Productions

Mark Edwards, Edwards Creative Law

Brendan McNeill, President, Above the Line Media Services

Jason Meloche, Account Manager, National Bank of Canada

Shasha Nakhai, Director and Producer, Compy Films

Pictured above: the panel provided a high-level snapshot of what a producer needs to know, as well as providing insider tips on the common mistakes made by filmmakers, as such making it easier for the audience to better understand some of the complexities that are often overlooked, such as bookkeeping & taxes for filmmakers, financing & tax credits for filmmakers, and legal.

For many, it can be difficult to understand how the business of filmmaking works. With so many different parties involved, sorting through the information about who does what can seem like murky waters and you may find yourself wondering who is in charge when things don’t go as planned. Need a team to help you shed light on some processes in filmmaking that may seem confusing to you? Or just have a few questions on where and how to get started? Get in touch today with Sean Duffy at sduffy@welchllp.com to see where he and his team can help.

Were you eligible for the 10% Temporary Wage Subsidy and you accounted for it during 2020? If you did and you have a payroll account with the Canada Revenue Agency, you have to complete and submit Form PD27. As an employer, filing your TWS information on time is important. Elevate and Alex Mitrovic, CPA, CA, of Welch LLP will guide you through this important process.

“There is light at the end of the tunnel as to the global pandemic and the havoc it has caused for Canadian business owners”, says Alex, he continues “it’s important to remain compliant with CRA regardless of your situation. My team, along with Elevate, want everyone to be as audit-proof as ready. We have helped countless businesses stay afloat and thrive despite the upheaval – let’s get to the finish line together and ensure all is in order”. Alex has provided the following information to help you get there.

Do any of the following apply to you:

Form PD27 Due Before Filing of T4s

CRA has indicated that the PD27 must be processed by them before the TWS credits claimed by the employer will be posted to the source deduction account. Consequently, the PD27 needs to be filed before the T4s are filed as it informs CRA of the discrepancy between the remitted amounts during the year and the tax deductions reported on the T4s. Failure to do so may trigger a Pensionable and Insurable Earnings Review (PIER) by CRA.

Part D of Form PD27 requires the employer to provide details of the calculated wage subsidy, and also provides a box for written comments to provide further details not included in the calculations. CRA will use this form to verify the TWS claimed as well as reconcile to the CEWS claimed, if applicable. Eligible employers who only claimed the CEWS are still required to file Form PD27, indicating in the comment box the lower percentage claimed.

Claiming the TWS

If you have not yet reduced your remittances with the TWS, you can still calculate and apply for the subsidy using the Form PD27. Employers should indicate in the Additional Comments section of the Form how they would like to apply the subsidy. The three options are:

If you are not sure where to start, click on the following link: https://www.canada.ca/en/revenue-agency/services/subsidy/temporary-wage-subsidy.html

Completing Form PD27

For each pay period identified on the form, the employer will need to provide the following information:

The self-identification form can be submitted online, by mail or fax. Online submissions are filed through CRA My Business Account. Parsing through payroll guidance can be daunting. If you are unsure of where to start, need help moving it along, or want to entrust us with the work, please reach out to us at sduffy@welchllp.com

Resource: https://www.canada.ca/en/revenue-agency/services/subsidy/temporary-wage-subsidy/tws-reporting.html

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