“Tax time”
Preparing your own tax return can be a complicated and confusing process. We are qualified and trained tax preparers who understand your situation. In a friendly professional manner we can answer all of your tax questions and provide a first class service.
We’re there for you during tax time. We have the tools and resources to get your federal and provincial income tax returns prepared correctly, so you can get the most money back in the shortest amount of time possible.
Along with our personal service, we offer free advise and support to our clients.
Let's face it, nobody looks forward to preparing their taxes.
The preparation of tax returns is becoming more and more complex by the constant expansion and amendment of the tax rules. At Thannesans we keep up on the ever-changing tax rules and regulations so that you don’t have to.
We provide convenient, accurate, and affordable tax return preparation to individuals, self-employed, small businesses, and corporations. We work closely with you to minimize your tax bill and maximize your tax refund. Our team members are trained to get even the smallest deduction and credit you are entitled to. We accurately prepare your return and carefully organize your accounting records to minimize the risks of your tax returns being audited.
Many of our clients do not travel to our office, instead they email, fax, or upload their tax documents on-line to us. We understand convenience and relationship is the key to the quality of our services. We keep close relationship with you and our system is carefully designed to accurately and promptly process the information no matter in which way you provide your tax documents to us.
Our service doesn’t end with the preparation of your income tax return. We provide you with year-around tax support for every return we do for you. We help you respond to all CRA inquire. We keep copy of supporting documents in our office, so we are able to respond quickly and accurately to CRA’s request for documents and send you a copy for your records. Should you be audited, we will provide assistant. We explain to auditors how your return was prepared. We prepare a Notice of Objection for you if the CRA incorrectly reassesses your return.
We believe that all of our clients are entitled to the highest level of service. With Thannesans, you do not just get your return done. You also get a peace-of-mind.
You work hard for your money.
Our goal is to help you keep as much as you are legally entitled to. We will work closely with you to help you maximize your wealth and minimize your tax burden.
Are your independent contractors truly independent?
In today’s belt-tightening economy, some businesses are replacing downsized workers with independent contractors (ICs) to eliminate the costs of maintaining full-time employees. But just because your company considers workers as ICs doesn’t mean the CRA will. It’s critical that you understand CRA guidelines to ensure your ICs truly are independent, or they could be much more costly than you bargained for.
Get clear
Companies use ICs because they can get the service without the overhead. Employment laws don’t require you to pay them overtime or minimum wage — or provide them with mandatory employee benefits — as is required for regular employees. Moreover, you don’t need to withhold and pay federal, state, Social Security (FICA) and Medicare taxes on behalf of ICs.
But making the distinction between an IC and an employee can be tricky. And if you incorrectly classify an employee as an IC, the CRA could hold you liable for the taxes that should have been paid or withheld for that worker, and penalize you for not doing so. Let’s look at an example to help drive home this important point.
ABC Corporation added several ICs to its telemarketing center. The workers signed agreements stating they’d work for a certain fee and be responsible for paying their own CPP, EI, Taxes and WCB.
Unfortunately, ABC made the mistake of integrating the ICs into the company, including allocating them office space and using company managers to oversee their work. ABC thought the signed agreement protected them, but the CRA considered it hollow because, in nearly every way but compensation, the company treated the ICs as employees.
As a result, ABC had to pay the ICs back EI,CPP, Taxes, WCB and the value of health insurance, 401(k) and other benefits for the period they worked. On top of this, ABC had to pay those costly CRA penalties.
Avoid trouble
The distinction between employee and IC typically is determined by the amount of control the company has over the way in which the individual works and by the support given to that individual. To steer clear of CRA trouble, explain your desired results to the IC and provide a deadline, but leave the how, when and where the work is done to the IC. And be sure that the individual uses his or her own transportation, equipment and supplies.
Here are several other guidelines to help protect your ICs’ independent status:
Require invoices. ICs should give you a total cost estimate for their work, rather than just an hourly or monthly rate. Ask them to submit invoices on completion or a series of invoices if the work takes more than a month or two. At year end, file a T4A or T5018 for each IC to whom you paid at least $500 during the year.
Look for professional operations. ICs should have their own workspace and resources. Like other professional businesses, they should market their services and carry business insurance. Use ICs who work for other companies besides yours. Otherwise, if his or her tax return includes only one T4A or T5018, the CRA might challenge his or her IC status.
Be mindful of industry norms. The CRA knows that some industries hire ICs more than others. For example, builders often hire independent carpenters, electricians and other trades people. If your industry doesn’t typically use ICs, diligently follow the basic control and support rules as well as those regarding invoicing and hiring professionals.
Above all a well defined contract laying out terms and conditions would be beneficial to both parties/
Finally, consult an employment law attorney to develop a policy for hiring ICs, and have him or her prepare work-for-hire contracts for use with all ICs.
Go by the book
Using ICs can be a cost-saving option for your company, particularly during this tough economic climate. But take precautions to ensure your independent contractors are truly independent. Keep accurate records of all work performed by and money paid to your ICs so that, if their classification is ever questioned, you’ll be able to substantiate their status.
Sidebar: Protect your benefit plans
If a benefit plan excludes independent contractors who are later reclassified as employees, they may be entitled to retroactive benefits, which could be costly to your company and even jeopardize the tax-qualified status of your employee benefit plans. For example, if a reclassified employee is entitled to benefits from a 401(k) plan or defined benefit plan, you’d have to retroactively include the worker in the plan, make a retroactive contribution as required under the terms of the plan, and make an additional contribution of annual interest and earnings.
To maintain the plan’s tax-qualified status, you’d likely need to correct certain operational failures of the plan, as prescribed by the CRA. And you’d need to rerun nondiscrimination testing for the plans and possibly amend tax returns filings. Other benefit plans may also be affected, including, group health and term life insurance plans, and incentive stock option plans. Be sure to examine the terms of these plans and, if necessary, amend them.