The incorporation process is relatively simple whether you incorporate provincially or federally.
As a sole proprietor, you may be looking back at last year’s results and ahead to the time you have to pay your taxes, and wondering whether you might not be better off incorporating to control the income tax expense on earned income. In Canada, a company may be incorporated provincially or federally. Federal incorporation has some advantages:
The Employment Insurance premium rate for 2016 is 1.88%.
Yearly maximum insurable earnings are set at $50,800, making the maximum employee premium $955.04.
As in previous years, employer premiums are 1.4 times the employee contribution. The maximum employer premium for 2016 is therefore $1337.06.
The Canada Revenue Agency (CRA) has issued a Tax Tip reminding small business owners who are eligible for the Hiring Credit for Small Business (HCSB) for 2012 that they can receive that credit when they file their 2012 T4 information return later this month.
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