Summer is flying by so quickly, and hopefully you remember to pause, breathe, and celebrate how far your practice has come. Between family barbecues and preparing for back-to-school, now is an ideal moment to review your mid-year finances. A small check-in now can prevent frantic catch-up later. As always, the goal is to keep your focus on client care, not spreadsheets. Let’s look at the key updates and tips that can lighten the load.
Numbers in the News
Payroll Alert: Federal & Alberta Tax Cuts Kick in This July
The CRA’s July payroll guide confirms a double dose of relief: the federal bottom tax bracket drops from 15% to 14%, and Alberta introduces a new 8% rate on the first $60,000 of income. Because the change takes effect mid-year, payroll deductions from July to December are prorated at 14% federally and 6% provincially. If staff salaries or owner-manager draws run through payroll, update your software (Wagepoint calculations are automatically updated) to avoid over-deducting.
Catch the full rate tables, examples, and a quick recalculation checklist in our blog.
Financial Wellness Rx
Myth vs Fact: Mandatory E-Filing for GST/HST
- Myth: “Paper returns are still accepted for small clinics.”
- Fact: All registrants except charities and SLFIs must e-file for periods ending 2024 onward. Penalties apply for paper filings.
- Quick Fix: Set up My Business Account or use Xero’s GST/HST report, then NETFILE.
- Myth: “No sales this quarter means no return needed.”
- Fact: A nil return is still required; skipping triggers late-filing penalties.
- Quick Fix: Schedule a recurring calendar reminder the day the period ends.
- Myth: “E-filing means the end of receipts.”
- Fact: CRA can still ask for supporting documents.
- Quick Fix: Export Xero’s detailed tax report and store PDFs in the client file for six years.
We recently helped a client who waited until deadline day to file their GST/HST return, only to discover they had misplaced their NETFILE access code. Since the code arrives by mail, it’s an easy piece of paper to lose. Without CRA My Business Account access, they had to scramble to call the CRA, verify their identity, and rush to file on time. Save yourself the stress by getting set up today.
Question of the Week
“Are virtual therapy sessions delivered to clients in another province subject to GST/HST?”
A: Most one-on-one counselling services by a provincially regulated mental health professional are exempt from GST/HST, whether delivered in-person or online. The exemption depends on the type of service provided, not the client’s location. Keep documentation that confirms professional designation and the therapeutic purpose of each session. If you also offer unregulated coaching or group programs, those may be taxable. Track them separately to stay compliant.
Next Step
Feeling overwhelmed by recent tax changes?
Our Tax Therapy session untangles rules in plain English and leaves you with clear answers — no jargon, no judgment. Book your spot and let’s get the stress off your shoulders.
