As summer comes to an end and fall begins, it’s a natural time to plan and refocus. It’s the perfect time to review your practice’s financial health and establish goals for the months ahead. We hope you had a chance to rest and recharge over the past few months. Let’s ease into this new season with some helpful updates and insights to keep your practice thriving.
Numbers in the News
A Check-In on 2025’s CPP Changes
With the final quarter of the year upon us, it’s a perfect time to review your tax planning. As you know, 2025 brought the new second tier of CPP contributions (CPP2) for higher-income earners. If your practice has had a stronger year than expected, you may have crossed into this second earnings ceiling. Now is a good time to check your year-to-date income and ensure your payroll remittances are sufficient to cover these new contributions. A quick review can help you avoid a surprise tax bill next spring.
For a deeper dive into the specific thresholds, read our latest blog post.
Financial Wellness Rx
Myth vs. Fact: Common Expense Claims
Navigating business expenses can be tricky. Let’s clear up a couple of common myths for mental health practitioners.
- Myth: You can claim 100% of your home office expenses if you work from home.
- Fact: You can only claim the portion of expenses related to your dedicated workspace. Your claim should reflect the percentage of your home used for business purposes. For example, if your office is 10% of your home’s total square footage, you can claim 10% of eligible costs like utilities and rent.
- Myth: Business lunches and coffees are fully deductible.
- Fact: The CRA generally allows you to deduct only 50% of meal and entertainment expenses, even if they are for legitimate business discussions with clients or colleagues. Always keep detailed records and receipts to support your claims.
Resource Roundup
Your Guide to Starting a Solo Practice
Are you thinking about branching out on your own? The idea of starting a solo mental health practice is exciting, but the financial and administrative side can feel overwhelming. Our Resource Hub has a free guide, “Essential Tips to Starting Your Solo Mental Health Practice,” that covers everything from creating a business plan to understanding tax obligations. It covers everything from creating a business plan to understanding your tax obligations, helping you get started with confidence.
Download this and other valuable guides from our Resource Hub today.
Next Step: Check Your Practice’s Financial Health
Our Financial Wellness Blueprint is a free resource designed to help you evaluate your practice’s financial health. Get your score in minutes and identify areas for improvement.
