Connect with us

Local Business

Why It May Pay to Skip the Staff BBQ

Published

2 minute read

By: Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr – President & Founder of CGL Strategic Business & Tax Advisors.

Say you are a business and you invite your 30 staff to your annual Employee BBQ

The company shells out $1,500 for the event at $50 a person fully expecting everyone to attend but as luck would have it, the weather doesn’t co-operate, so most people stay home.

When it is all said and done, only 9 diehard employees show up.

Well, it gets worse.

According to the Canada Revenue Agency these loyal 9 employees now have a taxable benefit.

On April 9, 2018, the CRA released an (originally in French) Internal Technical Interpretation (2017-073125117 F). In this interpretation, the CRA states that the benefit is calculated based on the total cost paid by the employer divided by the number of attendees.

The CRA does not factor in total number invited, just those that show up.

When you take the full $1,500 cost and divide it among the 9 employees that actually attended, the per person benefit is now over $150. As a result, the employees in attendance have a taxable benefit to include in their income.

Meanwhile, those that stayed home, are not affected.

I can just imagine the office dynamics as the 9 people go on the warpath on the other 21, which only needed one of them to attend to avoid this issue.

While I can understand the intent of the provision to prevent large amounts being spent for only a few, it appears to be counter-productive where accidentally falling offside because of a decrease in attendance would now be considered a taxable benefit to those in attendance.

The meal consumed does not change.

The chair to sit on does not change.

But according to the CRA, the benefit changes.

This interpretation is problematic and should be corrected by the CRA or Finance.

Until then… stay home… it’s cheaper.

CEO | Director, Canadian Tax Advisory CGL Strategic Business & Tax Advisors With the Income Tax Act always by his side on his smart-phone, Cory has taken tax-nerd to a whole other level. His background in strategic planning, tax-efficient corporate reorganizations, business management, and financial planning bring a well-rounded approach to assist private corporations and their owners increase their wealth through the strategies that work best for them. An entrepreneur himself, Cory started CGL with the idea that he wanted to help clients adapt to the ever-changing tax and economic environment and increase their wealth through optimizing the use of tax legislation coupled with strategic business planning and financial analysis. His relaxed blue-collar approach in a traditionally white-collar industry can raise a few eyebrows, but in his own words: “People don’t pay me for my looks. My modeling career ended at birth.” More info: https://www.CGLtax.ca/Litzenberger-Cory.html

Follow Author

Business

Downtown Business Spotlight: Root 51 Salon and Spa

Published on

This week’s Business Spotlight shines on Root 51 Salon & Spa! This unique establishment is located right on 4814 51 St and offers anywhere from haircare to spa treatments to relax and pamper. We spoke with the owner to learn more about this wonderful establishment!

What is your business?
Our business is a small locally owned salon & spa.

When did your business open?
We downsized & renovated this main floor in 2016 & changed our name to Root51 (previously Techniques Hair Therapy & Day Spa in the Millennium Center for 2 decades!)

What makes your business unique?
We have asked our valued guests this same question the responses we got: our education, our flexibility to accommodate, our selection & knowledge in our top-shelf natural products for both hair & skin, our prices are extremely reasonable for the level of experience (over 30 years) & education (over 100K worth of education!!!) (in a big city I would charge 35-40% more for the same treatments), and we work hard and are very proud of this next one…our Cleanliness – often they say your place is always spotless! (even before Covid!!)

What are some products/services that you offer?
Full-service Salon hair Care & Spa treatments that are non-invasive. Michele specializes in colours, balayage & ombre, colour corrections & blondes. Smoothing treatments are in high demand for silky soft straight looks and perms for waves or more body. With 30 years of cutting hair, some guests have said “that’s the best-shaped haircut I ever had.”
Spa treatments are effective and relaxing with visible results after one treatment ~ home care is a must because maintenance is easy than correction. Our skincare line is exclusive to us in RD and is composed of sea plants and seawater with many benefits to your facial skin as well as your body and well-being!

Why did you choose Downtown Red Deer as the location for your business?
In 2000, the Millennium Center was a brand new and very central location — when we changed the location to 2 block north on 51 st ~ we wanted to be able to still cater to our professional corporate downtown business people.

What do you think makes Downtown vibrant?
I believe it’s the local entrepreneurs big & small that make downtown a vibrant place.

Website: Root 51 Official Website
Facebook: Root 51 Facebook Page

Continue Reading

Alberta

Downtown Business Spotlight: Artisan Food Market on Ross

Published on

This week’s Business Spotlight shines on Artisan Food Market on Ross! This unique restaurant is located right on Ross Street (106, 4916 Ross Street) and offers a large selection of locally made products. We spoke with the owner to learn more about this wonderful establishment!

What is your business?
Artisan Food Market on Ross is a specialty food store. We carry a large selection of local, national, and international foods and ingredients.

When did your business open?
We opened on April 1, 2020.

What makes your business unique?
We carry a large selection of local items and have a variety of frozen meals.

What are some products/services that you offer?
Customers can place orders for their favourite D Dutchmen Dairy or Black Forest German Bakery products and the requested items will get delivered to our store the following week. Additionally, customers can shop online and have their products delivered to their homes even during the times that we are closed. If a customer wishes to place an order they can simply visit us at www.ArtisanFoodMarket.ca.

Why did you choose Downtown Red Deer as the location for your business?
As a Red Deerian, I wanted to make a positive impact for our downtown by setting up a local market store right here.

What do you think makes Downtown vibrant?
I love the flower gardens at the city hall and the assortment of independent shops in our downtown core.

Finish this sentence: I love Downtown because…
It’s my home and it’s my place for adventure.

Website: Artisan Food Market on Ross Official Website
Facebook: Artisan Food Market on Ross Facebook Page
Instagram:
@artisanfoodmarket

Continue Reading

june, 2021

tue04may(may 4)4:57 pmwed30jun(jun 30)12:00 pmMove Your Mood Family Challenge (June)(may 4) 4:57 pm - (june 30) 12:00 pm

Trending

X