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Wednesday, March 15, 1989 TERRACE BAY/SCHREIBER NEWS | Page 7 Businesses pay income tax quarterly Attention must be If you operate your own busi- ness, Revenue Canada, Taxation considers you to be a self- employed worker. In that case, you must pay particular attention to your income tax affairs. When you bécome self- employed, your first tax concern is to establish your fiscal period, ending not more than twelve months after the day your firm begins operating. You report your business income on the 'same income tax return (normally a T1 General) as you would report other income. You set the date on which your fiscal period or nor- mal business years ends when you file your first return reporting income from the business. Once the fiscal period has been chosen, you cannot change it without written approval from Revenue Canada, Taxation. Books and Records You are responsible for keep- ing books and records of all your financial transactions. These doc- uments will be used to establish and justify your business income and expenses for income tax pur- poses. All your transactions must be recorded in detail (description, cost, and date of transaction or payment for purchases or sales.) Note that each entry must be sup- ported by original documents Only a one time chance to join MNR's Junior Ran By Dave Chmara The Ministry of Natural Resources' Junior Ranger pro- gram is a once in a lifetime opportunity for teenagers to expe- rience the outdoors firsthand. It's a once in a lifetime oppor- tunity because only those 17 years of age are eligible to join the program. ~ The program runs for eight weeks - beginning in July - and provides both female and male teenagers the chance to learn about fish, wildlife, parks, water, land and forest management. Activities range from' planting trees to creating portages. Junior Rangers also learn about canoe- ing and first aid. In this area, the Ministry is reducing the size of one camp, closing another, and increasing the size of a third. Will Robinson, Land Management Supervisor for the Terrace Bay District Ministry of Natural Resources, says the pro- gram is split equally between work and learning. "Junior Rangers help in provincial parks and also clear canoe routes," said Robinson. He mentioned that without the help of Junior Rangers, many canoe routes would become tangled with overgrowth and would not remain open. ' The Ministry brings in guests from the Ministry of Northern Development and Mines and Ministry of Tourism to speak with Junior Rangers. The standard rule of sending teenagers who live in the north to Southern Ontario camps and vice versa, may change in the future said Robinson. For those who join the local Junior Rangers camp, which is located at Ramsey Lake, Robinson said there is a consider- able work program. _ such as sales invoices, receipts, fee statements and contracts. You must also retain your books and records, including the supporting documents, at your place of business or your resi- dence for at least six years. To destroy these documents before this time limit expires, you must obtain written authorization from the director of your district taxa- tion office. Accounting method All self-employed workers (except commission sales people and farmers and fishermen, who may use the cash method) must use the accrual method of accounting to keep their books and records. With this method, your income is to be reported in the year in which it is earned, regardless of the year in which you actually receive it. Similarly, your expenses are reported in the year in which you incur them regardless of when they are paid. Financial statements When you report business income, don't send all your docu- ments with your tax return. Instead, attach a financial state- ment to your return. Revenue Canada, Taxation has developed Standard Financial Statements to "It brings a sense of reality as to what the Ministry (of Natural Resources) does," said Robinson. He added that there is consider- able moving around with the job as the Junior Rangers could be working in a provincial park one week and clearing a canoe route the next. Junior Rangers are paid a basic wage of $15 per day, six days a week, plus free room and board and a subsidy for travel costs. To be eligible for one of the 900 positions available, students born between August 1, 1971 and December 31, 1972 must apply to the Ministry of Natural Resources by March 31, 1989. Applications are available from the local Ministry of Natural Resources. Due to the success of the Junior Rangers Program, the MNR has begun a Junior Rangers simplify the work. You can obtain copies from your district taxation Office. Your Employees ger Program You may have to hire employ- ces to operate your business. In that case you must obtain an Employer Account Number and make deductions for Canada Pension Plan contributions, Unemployment Insurance premi- ums and income tax from the wages paid too your employees. If you employ your spouse in your business, your spouse's salary must be paid for services for which you would have to hire someone else if your spouse did not assist you. The tax deductions you take from your employees' pay, and your employer's share of the Canada Pension Plan contribu- tions and Unemployment Insurance premiums, must be sent to Revenue Canada, Taxation. More information on your responsibilities as an employer and the necessary forms can: be obtained from your district taxa- tion office, by asking for the "Small Business Employer's When you operate a small business, you must pay your income tax by instalments to Revenue Canada every three months. Tax instalments are II Program. Robinson said, "There were a lot of good kids who wanted to come back," but because the Junior Rangers Program is open only to 17 year olds, and is a one time opportuni- ty, they were unable to join the program again. The Junior Ranger II Program allows one in six former Junior Rangers to come back to work for the MNR. Robinson said the Junior Ranger II program is most- ly a work program and allows participants to go anywhere in the province. "There's a higher degree of training and they work on a sub- foreman level," said Robinson. Since its inception 45 years ago, more than 48,000 Ontario secondary school students have taken part in the Junior Ranger Program. Draw a picture of The Easter Bunny in pencil on a blank piece of paper. Include your name, age, phone number and address. We must receive your entry rch 1 You could ri Terrace Bay/Schreiber News P.O. Box 579 Terrace Bay Ontario POT 2wo } required when (1) no federal tax is being deducted from at least three-quarters of your net income, and (2) your 1988 net federal tax are each over $1000 (including the individual surtax.) Your income tax instalments If you expect to have to make instalment payments, ask your district taxation office for an instalment guide, which will help you calculate the amount payable. Note, however, that if you neglect this tax responsibility, you will very likely have to pay the inter- est Owing on your overdue or insufficient instalments. While farmers and fishermen pay two-thirds of their new feder- al tax payable in one instalment paid to records on December 31, all other indi- viduals must make quarterly instalments payments not later than the end of March, June, September and December 1989. Your first instalment must be sent to your taxation centre, which will send you remittance forms for future instalments. With these forms, you can make subse- quent instalments at a Canadian chartered banking institution, a Caisse populaire or a credit union, or mail them to your taxation cen- tre. On or before the following April 30, you must calculate on your tax return the actual amount of tax payable for the year, sub- tract all tax deducted at source and the instalments, and pay any balance owing. If you have paid too much tax, you will be entitled to a refund. Back a Fighter with Easter Seals Sie Fragrances 20% OFF Kids Clothing 20% OF. Ladies Summer Slacks & Sweaters Selected 20% - 50% OFF Many In-Store Specials New Arrivals master charge