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ca4it.com CA4IT has been a pioneer among chartered accounting firms with respect to the Personal Services Corporation (PSC) or sometimes called the Personal Services Business (PSB) income tax issue. Many of CA4IT’s first incorporated IT contractor clients and other independent professionals came to CA4IT after being turned away by other chartered accounting firms who believed that all such small corporate clients were definitely PSC’s. PSC risk may also apply to other independent professionals like consultants, engineers and project managers. I’d also like to tell you about what CA4IT has done to assist and protect our clients regarding this matter. Independent contractors benefit from the following income tax advantages: 1- Income retained in the corporation qualifies for the small business deduction resulting in a low corporate income tax rate of approximately 15.5%, 2- Overall income tax can be lowered using income splitting to pay reasonable salaries and dividends to family members. 3- The corporation is entitled to deduct a fairly broad variety of business expenses that were incurred in order to earn business income. This business video addresses the risks and benefits associated with the Personal Services Corporation or Personal Services Business CRA income tax issue. For more tax tips videos on how to reduce your personal taxes and business taxes visit out tax tips resources at ca4it.com We also have a series of videos on interview tips, resume tips and cover …
This article was published at Accounting Services of Charlotte, NC