July 2025

E-Commerce & the CRA

If you're selling online, whether it's through your own website, Amazon, Shopify, or even social platforms, the CRA has their eye on you — and your tax obligations. One key area where e-commerce sellers get tripped up is sales tax. If you're in Ontario but selling to customers in other provinces, you may be required to collect the other province’s HST or GST/PST rates once you cross certain revenue thresholds. And yes, this includes digital goods and downloads too.

Another issue is income tracking. Online platforms often send you gross sales totals, but it’s up to you to track expenses, returns, merchant fees, and currency conversions. Don’t assume your PayPal or Stripe report will have everything you need. A little bookkeeping discipline goes a long way here — and can save you big if CRA ever comes calling.

Thinking About Hiring? Don’t Skip the Payroll Prep

Bringing on your first (or next) employee is an exciting step — but it comes with important payroll and tax obligations. Before you post that job ad, make sure your CRA payroll account is set up, you're clear on source deduction rules (EI, CPP, income tax), and you understand the costs beyond salary, like vacation pay and WSIB in Ontario. If you’re hiring contractors, don’t assume they’re automatically “self-employed” — CRA is strict about worker classification, and getting it wrong can lead to penalties. Whether it’s a part-time assistant, a remote bookkeeper, or your first full-time hire, we can help you set up payroll the right way and avoid costly missteps. Let’s make hiring a win — not a worry.

Personal Tax Tip: RRSP vs. TFSA — Mid-Year Edition

Summer is a perfect time to revisit your personal tax strategy. Many people wait until the RRSP deadline rush in February, but contributing earlier in the year gives your investments more time to grow tax-deferred. If you’re in a higher income bracket this year, RRSPs can help reduce your taxable income — which may mean a juicy refund come tax season.

On the flip side, if your income is on the lower side or you’re just starting out, a TFSA (Tax-Free Savings Account) might be a better place to stash your savings. TFSAs don’t offer a deduction, but your growth and withdrawals are completely tax-free. They also won’t reduce your future benefits like the Canada Child Benefit or Old Age Security. Not sure what’s best? Let’s run the numbers and build a tax-efficient game plan that fits your life now and in the future.

New! Canada Disability Benefit Launches

Big news: The Canada Disability Benefit (CDB) is officially live! This new monthly payment is designed to provide financial support to working-age Canadians (ages 18–64) who live with disabilities. To qualify, individuals must have an approved Disability Tax Credit (DTC) and have filed their 2024 income tax return. The benefit could be worth up to $200/month, with the first payments expected in July 2025.

While it’s a meaningful step toward reducing poverty among people with disabilities, some provinces (including Ontario) have not confirmed whether this new federal benefit will be clawed back from provincial programs like ODSP. Still, applying is a must for anyone eligible — and we’re here to help you navigate the process.

The preceding information is for educational purposes only. As it is impossible to include all situations, circumstances and exceptions in a newsletter such as this, a further review should be done by a qualified professional.

No individual or organization involved in either the preparation or distribution of this letter accepts any contractual, tortious, or any other form of liability for its contents.

For any questions, please contact us.

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