Contractor accountant in Kelowna

For a one-owner Kelowna contractor, monthly bookkeeping, payroll and the year-end T2 with statements usually cost from $500 to $700 a month all-in.

T5018 slips and who counts as a subcontractor

A business mainly in construction reports subcontractor payments for construction services on T5018 slips and a summary, due six months after the reporting period (calendar or fiscal year). Collect subcontractor names, business numbers and addresses at engagement; chasing them in spring, after the crew has moved to Vernon or Penticton, causes most late T5018s. The T5018 subcontractor tracker keeps the details in one place.

Classification is harder. A framer working only for you, on your schedule, with your tools, may be an employee to the CRA whatever the invoice says, and reclassification makes unremitted CPP and EI your liability. Subcontractor or employee sets out the tests.

Progress billing, holdbacks and when GST is due

Most construction is billed in stages. GST on a progress billing is generally payable when the invoice is issued or payment falls due, whichever is earlier, not when the customer pays; waiting for the cheque makes every draw late. Builders Lien Act holdbacks are generally not subject to GST until paid or payable, so show them separately.

Staging drives income too. Unbilled finished work, costs on running jobs and unreleased holdbacks straddle the year-end, and how they are measured decides profit in each year. Lenders and bonding companies read those numbers. Construction holdbacks works through the entries.

PST on materials: the contractor usually pays it

BC PST treats an installing contractor differently from a store. Supplying and installing lumber, fixtures, cabinets or roofing to improve real property generally makes you the consumer: you pay PST when buying and do not charge it on the installed work. Materials from out-of-province suppliers who charged no PST usually must be self-assessed. Supply-only sales, such as flooring without installation, generally require charging PST.

Errors run both ways: charging homeowners PST they should not pay, or skipping it on materials. Business tools and equipment carry PST too. See the BC PST guide on registration and self-assessment.

WorkSafeBC coverage and clearance letters

Construction employers register with WorkSafeBC, are classified by their work and report assessable payroll. The clearance letter matters most: a prime contractor can be liable for a subcontractor’s unpaid premiums on the job, so check each clearance before paying. A solo owner-operator can consider personal optional protection, a coverage choice, not a tax one. WorkSafeBC registration covers first steps; the Kelowna payroll page covers the crew.

Trucks, trailers, excavators and tools are the other big line, written off through capital cost allowance by class; purchase timing against year-end changes the first-year deduction. A truck that goes to the lake on weekends needs a business-use log. Plan big purchases around the year-end, not the dealer’s deal of the day.

GST on new housing

A builder selling a new home charges GST, and the buyer may claim a new housing rebate, sometimes assigned to the builder at closing. A builder who rents out a new home is generally treated as selling it to itself, accounting for GST on fair market value under the self-supply rules.

Substantial renovations can trigger the same rules. The amounts are large against a small builder’s margin and depend on the contract and sequence of events, so plan before the foundation goes in. The first-time home buyers’ GST rebate covers the latest change.

What EverStone handles for you

One firm, one fixed fee agreed up front:

• T2 corporate return and year-end financial statements
• Holdbacks and work in progress reviewed at the cut-off
• T5018 subcontractor information returns
• GST on progress billings and PST on materials, filed on their own schedules
• WorkSafeBC reporting and subcontractor clearances
• Equipment and vehicle CCA schedules

Fixed fees, fully online

Everything runs by video, phone and secure upload, which suits a business run from a truck. Bookkeeping, payroll and the T2 with statements usually run $500–$700 a month, fixed first. See what it costs.

Remote contractor accounting

Kelowna contractor accounting is remote. There is no Kelowna office and no local team. You deal with the CPA directly, and subcontractor payments, equipment and vehicle costs are tracked as they happen, not rebuilt at year end.