Spring 2015 issue - The Markham Board of Trade
Transcription
Spring 2015 issue - The Markham Board of Trade
2015 Spring Issue M A R K H A M ’ S FINDING THE E X C L U S I V E VENTURE IN ADVENTURE PLUS 3rd Annual ASPIRE Awards – pg 4 Reset: Changing Course to Grow – Redline Communications Group rebounds – pg 8 When is your Social Media a Waste of Time? – pg 10 Seven tips on Incorporating your Business – pg 17 B U S I N E S S M A G A Z I N E I 72 Joe Daisy C Dr. Pe R A Cov 2015_LaDifference_04_outl.indd 1 1/20/2015 9:47:08 AM IN THIS ISSUE Publisher Richard Cunningham, President & CEO e r u t n e V the enture What ybe Tokyo, d sushi es with MARKETING Membership information Mary Ann Quagliara Director, Member Services 905-474-0730 ext. 3017 Markham Board of Trade Markham Convergence Centre 7271 Warden Avenue, Markham, ON L3R 5X5 T: 905-474-0730 • F: 905-474-0685 [email protected] www.markhamboard.com Markham Board of Trade 2014-15 Board of Directors OFFICERS: Joe A. Salib (Chair), Sun Life Financial – Unionville Cover and Cover Story Design: CS-Graphic Design Inc. Design: Lisa Mervin, L.J. Sales Cover photo courtesy ParkBus.ca Printing: CanMark Communications Circulation – 12,000 © February 2015. All rights reserved. No part of this publication may be reproduced or copied in parts, or as a whole, without prior written permission of the Markham Board of Trade Publication Agreement Number 41245573 MADE IN MARKHAM A LOOK AT SHIMCO, AWARD WINNING SUPPLIER OF HIGH QUALITY AEROSPACE PARTS. 10 Your Social Media: When is it a Waste of time? 6 Advertising information Christine Rogers Advertising & Marketing Consultant 905-474-0730 ext. 3019 a doctor, ming Daisy Wai (Vice Chair), Ad2000 & Beyond Advertising med of beco business ing a travel y ’t in companCharles Scott (Secretary), Community Volunteer nitely wasn career Fishman’s nder Amir awnZamin Baqar (Treasurer), KPMG Enterprise ays been dr alw ’d He n. ent , Fishman sp he outdoors mp DIRECTORS: a survival ca summers at s Shadi Aghaei, Times Group Corporation wa it t, bu ods; t in the wo for d studying hen he starte Dr. Peter ssion Kim, Canadian Memorial Chiropractic College college admi is medical ed en he realizCarole McAfee Wallace, Wilson Vukelich LLP wh T) est (MCA ppy. ha made him lly rea at wh dying for the Bruce McMeekin, J Bruce McMeekin Law “While stu ng as s also worki Vito Marchese, Whiteboard Studio MCAT I wa self I . found my a tour guide ors re time outdo Rashpal Sahota, Powerful Mind Powerful You spending mo me ca be it d g an sted Tilden, RE/MAX Realtron Realty Inc. than readin intere Bruce I was more clear what e about “What I lov Erez Zevulunov, MIT Consulting in,” he says. ilds is how it bu the outdoors ll Andy Taylor, City of Markham Representative You have fu confidence. ges ical challen days of phys Richard Cunningham, s and see progres and you’ll in front ht President rig & CEO, Markham Board of Trade nt me accomplish ” of your eyes. 7:08 AM COVER STORY Editor Dave Deeley Director, Marketing & Communications Your comments are always welcome. Please email [email protected] Finding the Venture ul most beautif What are the one? in Adventure s n take some cause of thi places we ca s of over 20 year ries visors with us indust rio Business ad va g in PD IN 3 servic s in: experience ing personal service id and provProfessional Development Tips ess Plans sin Bu • g g & Auditin l Planning Accountinfrom Markham & Financia Public Library te ta Es • & Start-Ups Corporate Personal & Taxation – t, CA, CFP EigenmachBOOKS JackBUSINESS x 22 228 905.305.97 .com crackower HUMAN nmachtRESOURCES jack@eige Reset: Changing Course to Grow 13 kower.com crac acht Howmto get an Underperforming www.eigen • Suite 202 E: w Drive Be an 345 Renfre 9 estion Fishm mpany’s That’s the qu tario L3R 9S elves belief, the co m ask thems Markham, On signed p and his tea tri trips are de w on a ne ing fic cid eci de sp e when perienc to teach Personal ex learning destination. skills – from e in this a major rol e to often plays staff how to cano ide gu r s tou ing first decision. 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Pre-Scho a rs) had traine d Universi ool ss an sch ne 12 to fit n e d the ru an o ad d tter wh 2 to Gr e ma . my stuff an ad no ing r, Gr ur ve Howe uld start po s his before it wo Fishman say en the ch travelers are one day wh to offer mu There was the any’s goal is lly early in mp co rea cation. d va rte rain sta t any old ll the jus we n pt tha sle ’t re e mo hadn g for a uniqu morning, I ’t in a “You’re payin e e and wasn says. “Anyon nI night befor he he e,” “W nc s. rie expe ,” he say ering good mood realized trip, we’re off tent door I can plan a unzipped the nture.” and it you an adve st snowfall fir the s wa .” it to see 15 Spring 20 azing sight The VOICE was an am 8 12 14 Employee to Improve. 3 CONSIDERATIONS FOR YOUR SURPLUS ASSETS 16 2014 BUSINESS EXCELLENCE AWARD RECIPIENT PROFILE 18 SALUTE TO SMALL BUSINESS 20 nvision solutions WELCOME OUR NEWEST MEMBERS 22 17 om TCMPS.c Markham’s exclusive business magazine published by: 7 7 Tax Advantages through Incorporating Your Business www.markhamboard.com IN THE NEXT ISSUE MARKHAM WELCOMES THE GAMES OF SUMMER PLUS: MARKETING AND HR TIPS FOR SMALL BUSINESS, THE LATEST IN TECH GOODIES AND GOOD READING FROM MPL. The VOICE Spring 2015 3 Y P C W H AT ’ S G O I N G O N ? 3rd Monday, April 13 5:30 - 7:30 p.m. Flato Markham Theatre 171 Town Centre Blvd. Markham, ON Celebrate Markham’s top young professionals! Cultivating local talent and inspiring the next generation of business leaders. $20 + HST Everyone Welcome Cocktail Reception Business Formal Title Sponsor Registration: www.markhamboard.com [email protected] 905-474-0730 ext 3025 Event Partner Professional Development IT PAYS TO KNOW Mark your calendar for payroll education! Marty S., CPM - CPA Member, Ontario Region With more than 190 federal and provincial regulations and changes each year, staying payroll compliant is one of the biggest challenges employers face. Stay Current Stay Compliant Improve compliance and reduce the risk of audits and penalties with help from Professional Development seminars from Canadian Payroll Association (CPA). CPA offers seminars for all levels from beginner to advanced. On a variety of topics covering Learning Payroll, Taxable Benefits, Employment Standards, Pensions and more. Check our calendar for a seminar in your area. Learn more at payroll.ca. Call 416-487-3380 ext 118 or 1-800-387-4693 ext 118. Become a CPA member and get preferred rates on seminars. www.payroll.ca 4 The VOICE Spring 2015 The VOICE Spring 2015 5 Finding the Venture in Adventure By Samantha Sim Picture this. You’re on a 10-day trip in Japan. What sights do you visit? Maybe you walk the streets of Tokyo, eat authentic ramen and sushi or visit Japanese shrines with a rich history. But have you thought of hiking through the Japanese mountainside or paddling through the country’s rivers, all with the goal of snapping the best photos? That’s exactly where Markham-based adventure travel company Overhang Adventures will be taking a group of travellers later this year. The company, founded in 2008, specializes in taking people on trips out of the ordinary. Overhang Adventures is just one of the many companies entering the growing adventure travel segment of the tourism industry worldwide. A study conducted by George Washington University, in the United States, found that 26 per cent of international travelers are engaging in adventure travel activities. The percentage of individuals travelling for adventure rose almost 20% between 2009 and 2012. Growing up as a shy young boy who always 6 The VOICE Spring 2015 2015 dreamed of becoming a doctor, owning a travel business definitely wasn’t in company founder Amir Fishman’s career plan. He’d always been drawn to the outdoors, Fishman spent his summers at a survival camp out in the woods; but, it was when he started studying for his medical college admission test (MCAT) when he realized what really made him happy. “While studying for the MCAT I was also working as a tour guide. I found myself spending more time outdoors than reading and it became clear what I was more interested in,” he says. “What I love about the outdoors is how it builds confidence. You have full days of physical challenges and you’ll see progress and accomplishment right in front of your eyes.” Business advisors with over 20 years of experience servicing various industries and providing personal services in: Accounting & Auditing • Business Plans & Start-Ups • Estate & Financial Planning Taxation – Personal & Corporate Jack Eigenmacht, CA, CFP 905.305.9722 x 228 Because of this belief, the company’s trips are designed to teach specific skills – from learning how to canoe to administering first aid in the wilderness. “We’ve taken people who’ve never held a paddle to going on a 15-kilometre canoe trip,” he says. “Of course we build them up to that moment. And to celebrate we go for a night paddle and stargaze.” After completing his biomedical science degree Fishman studied outdoor adventure leadership at Laurentian University. While in his final semester he put his new knowledge to use and pitched a tent in the middle of the forest. This is where he lived from September to December. “Each time it rained, I only had a few minutes to gather my stuff and run to school before it would start pouring. There was one day when the rain started really early in the morning, I hadn’t slept well the night before and wasn’t in a good mood,” he says. “When I unzipped the tent door I realized it was the first snowfall and it was an amazing sight to see.” What are the most beautiful places we can take someone? That’s the question Fishman and his team ask themselves when deciding on a new trip destination. Personal experience often plays a major role in this decision. His tour guide staff have travelled and worked around the world, which helps them recommend the best activities and provide fun anecdotes to each group they’re with. In fact, Fishman’s experience working as a river guide in Japan helped shape the itinerary for Overhang’s upcoming trip to that country. “While designing the Japan trip I definitely thought back to some of the best experiences I had while working there and incorporated those activities into the trip,” he says. To compete against major travel giants, such as G Adventures, Overhang has carved out niches for itself. Most of its customers have been international students and tourists, but the company has begun experimenting with trips targeted towards other groups (such as photographers and fitness trainers). However, no matter who the travelers are Fishman says his company’s goal is to offer much more than just any old vacation. “You’re paying for a unique experience,” he says. “Anyone can plan a trip, we’re offering you an adventure.”. E: [email protected] www.eigenmachtcrackower.com 345 Renfrew Drive • Suite 202 Markham, Ontario L3R 9S9 An International Baccalaureate (IB) Applicant School Discover What Makes Town Centre Montessori Private Schools Unique Pre-School to Grade 1: 905-474-3434 Grade 2 to Grade 12 and University Prep: 905-470-1200 TCMPS.com The The VOICE VOICE Spring Spring 2015 2015 7 Made in Markham Redline Communications Group Reset: Changing Course to Grow By Mary Teresa Bitti In late January, Markham, Ontario-based Redline Communications Group won a contract worth more than $1 million for the second phase of a wireless network across an oilfield in Argentina. This is just the latest win for the company that has become a strategic partner to the super majors of the oil and gas sector. Its proprietary widearea wireless Virtual Fiber™ solution has become the de facto standard anywhere in the world these energy giants deploy a field communication network. This leadership position is the result of a reset Redline’s board of directors initiated back in 2009, two years after the company went public and 10 years after it entered the market as a much different company. Founded in 1999, Redline’s initial vision was to develop an advanced wireless transmission technology for the mass consumer market which at the time on the cusp of switching from dial-up to broadband. “WiMAX, a wireless standard that enabled the delivery of “last mile” or the final leg of broadband access, was being formed with great promise of replacing or serving as a substitute to cable and DSL,” says Leigh Chang, vice president marketing and business development at Redline. “Our target market was the internet service providers. You had to be a standards-based technology for the operators to select you.” And 8 The VOICE Spring 2015 Redline wanted a share of this massive market. In the background, Redline was also developing a proprietary high performance, high reliability technology supporting the critical backhaul portion of telecommunications networks that the current business is based on. Up until 2010, this aspect of the business took a backseat. standardized, it was difficult for companies to differentiate themselves. “In 2009, the Board said this is not going to cut it any more because the WiMAX standard itself was in trouble. The next generation of wireless technology– LTE or 4G–was emerging and WiMAX’s great promise of being the default standard for all internet service “The majority of marketing and R&D dollars--close to $100 million of investment--targeted the standards-based technology,” says Chang. Redline enjoyed a good run thanks to the strength of its technology, but competition with much larger players such as LG, Samsung, Huawei and Alcatel was fierce, investment high and margins razor thin. What’s more, because the technology was providers was fading. Those competitors that stuck with the WiMAX standard technology have since gone by the wayside,” says Mr. Chang. In short order, the Board installed a new CEO who was an expert in change management. He set about identifying Redline’s competitive advantage-reliability, performance, flexibility--and the specific target markets that could benefit from Redline’s unique advantages. “It so happened the oil and gas industry was looking to invest in infrastructure to move to the next level of operation: digital oilfields,” says Chang. “We had already had limited success in the sector and we saw that our ability to operate in harsh environments would bring real value to oil and gas companies.” Redline refocused itself specifically to serve this sector and within three years grew its professional service offerings to complement the technology and position itself as a total solution provider and trusted strategic partner to the energy industry, designing, implementing and managing digital oilfields for its clients. The result: revenues from oil and gas clients have grown from $1 million in 2010 to $20 million in 2014. Last year, for the first time in its history, the company was profitable. “We win now not just by having a better technology but by having a better understanding of a specific industry resulting in better relationships with our clients,” says Chang. “We are entering a healthier new chapter.” Perhaps one of the best lessons entrepreneurs can learn is the importance of flexibility and being willing and able to course correct. Fail fast is a well-worn adage tied closely to entrepreneurship and for good reason: being able to change strategy and reset can lead to success. Stronger. Faster. Smarter. HRPA is proud to introduce the CHRL designation. The best leaders set the highest standards for themselves. The Certified Human Resources Leader designation is the new gold standard for HR leadership in companies across Canada. Certified Human Resources Professional, Leader, and Executive. The new gold standard: www.hrpa.ca/designations The VOICE Spring 2015 9 MARKETING Your Social Media: When is it a Waste of Time? W hether you’re a small or big business, being on social media is a good idea. The visibility and connectivity accessible through social media has convinced most business owners that it’s worth their while. But what isn’t so clear is how to measure what’s working and what’s not, and when to drop a platform that’s just a waste of time and energy. While its possible to track ROI and conversions, it can be tough to accurately measure the effectiveness of a social media campaign. You might find that some social media efforts that drive visitors to your content can be measured in other ways. The only way to know if what you’re doing is enough is to have a gauge on your ROI. In order to get there, you have to align your objectives to your measurement. For each network (Facebook, LinkedIn, Twitter, etc.) you’ll need to have an objective before you can decide on how successful the network is. You’ll need to decide what measurement would be the most valuable to you. Maybe you’re a blogger and your goals are e-mail sign-ups and blog followers, or, maybe you are a retailer looking to increase sales and traffic to your website – either way you must consider your key metric. I can guarantee that if you have had no objectives for your social media, then you will be extremely disappointed with the results. Capturing the data is the easy part – measuring interactions/ outcomes (likes, clicks, shares, followers) and analyzing traffic, reach, and leads against your objectives is what really matters when you are deciding if your social media investment is a waste of time or has a value for your business. As for which social media network you should be on, again let your audience and objectives guide you. Take a look at the general trends and demographic information each network provides and compare that to the audience you are looking to target. Social media is not different than other marketing tools, in that you need to understand your brand and your audience before you can choose the right platform, set objectives and measure your success. Doug Hohener is the President of CreativeWorks Marketing, a Markham based, international award-winning agency. Doug can be reached at 416-653-3053 or via email at [email protected] www.marlintravel.ca/Don-Mills-Donway Unique Destinations Adventure Beyond Travel Destinations® Specializing in Adventure Travel & Unique Destinations Marlin Travel Don Mills has over 50 years of adventure travel experience. Between our experienced Travel Professionals, we have visited over 60 countries and 7 continents. Whether its Manchu Picchu, Antarctica or The Rock of Gibraltar, our Travel Professionals will help plan your prefect adventure. ADDED BONUS: Bring in a copy of this ad and receive 25 Bonus AIR MILES® reward miles by simply visiting our branch.* Marlin Travel Don Mills 217-170 The Donway West Don Mills, ON, M3C 2G3 416-510-0015 *Receive 25 reward miles on presentation of this ad. No purchase is required. Offer is valid for the recipient only and is not transferable. Offer must be redeemed by Marlin Travel Don Mills by June 1, 2015. Limit one (1) offer per collector. Some conditions apply. Ask your Marlin Travel Don Mills travel professional for complete details. Base reward mile offer is 1/$35 on vacation packages, cruise fares and other fl ights. Not applicable on scheduled airline or rail tickets, hotel and car reservations paid locally, service fees, non-commissionable items, foreign exchange and insurance. Other conditions may apply. ®Trademarks of AIR MILES International Trading B.V. Used under license by LoyaltyOne, Inc, and Transat Distribution Canada Inc. Marlin Travel is a division of Transat Distribution Canada Inc. ON Reg. #50015084 Head Offi ce: 191 The West Mall, Suite 700, Etobicoke, ON, M9C 5K8. 10 The VOICE Spring 2015 Less gimmicky, more Vicinity. Smart business for your business. With Vicinity, you can make customers happier by offering rewards that will keep them coming back more often. Customize and create your own loyalty program with smart, simple technology and grow your business. Quick and easy set-up Customized to your business Improves customer communications Get a free demo 1.855.336.1422 vicinitywelcome.ca The VOICE Spring 2015 11 PD IN 3 Professional Development Tips from Markham Public Library In today’s rapidly evolving economy and labour market, individual professional development is critical and constant. An abundance of platforms, styles, and opportunities for learning also make it complex. This series explores accessible, cost-efficient approaches to PD and how to make the most of them through the library. Are you networked? HOW DO I SAVE $184,000 IN TAXES WHEN I SELL MY BUSINESS? THE LIFETIME CAPITAL GAINS EXEMPTION You may have heard of the exemption, but when an offer to purchase your business is made, are you properly structured to be eligible for the exemption? The partners of Kreston GTA can help. We are an experienced firm of Chartered Professional Accountants that advise businesses throughout their life cycle. Whether you need to structure your business for sale, or just need help setting up your business, we are there to provide strategic support. Contact Spence Walker to set up a consultation. krestongta.com | 905.474.5593 | 8953 Woodbine Avenue, Markham, Ontario A member of Kreston International | A global network of independent accounting firms 12 The VOICE Spring 2015 Networking is frequently touted as the ideal way to expand your contact base, market your organization, and tap into the hidden job market. Emphasizing quality over quantity, Geoffrey Malleck, Associate Director of University of Waterloo’s Economic Development Program, recommends shifting objectives from superficial introductions to meaningful collaborations. The first Monday of each month Markham Library partners with Startup York for Entrepreneurs in Residence, where local entrepreneurs share experiences in a TEDx style talk. Held at Angus Glen Library, these free events are an ideal opportunity to expand your professional network. While there, consider these 3 key networking strategies: 1. Seek to build. Every relationship you form will expand your connected learning community (CLC) and present opportunities for mutual support and collaboration. Always have an open mind in initial conversations; be prepared to share your story and look for parallels in others’ experiences. With this in mind, be cognizant of opportunities for networking beyond formal events – connections from the gym or cafe may become unexpected collaborators or colleagues! 2. A method to the mingling. Openness, engagement, and critical feedback are qualities of active listening that are almost always reciprocated, making your CLC an ideal support network and idea incubator. Be prepared to share the story of your career journey and inspiration, and investigate intersections and similarities between each other’s industries or approaches. The potential for remarkable parallels – especially across fields and development stages – is endless. 3. Follow up. In his studies of intelligent selling for business development, William Smalley of Route Five International Inc found that professionals fail to contact 73% of new leads generated. Relationships are a two-way give and take, and require regular maintenance. After asking for their card, reach out to your new contact in the days following your meeting; demonstrate their impact on you by relating a point from your conversation to a subsequent occurrence, realization, or finding. Ensure the relationship is ongoing and positive by forwarding pertinent articles, asking opinions on current news, and meeting for an occasional coffee. Amanda R. Kelly is the Business Community Librarian in the City of Markham Library’s Community Development Department. Reach Amanda at akelly@ markham.library.on.ca and 905-513-7977 x5340 – or on Twitter @markhamlibrary. BUSINESS BOOKS GOOD READING FROM MARKHAM PUBLIC LIBRARY Reverse Innovation by Vijay Govindarajan & Chris Trimble Innovation is the new business idea everyone is talking about – and it’s no longer exclusive to Silicon Valley. The dynamics of global innovation are changing, and the implications are profound. While exploring where, when and why, hear stories from the world’s leading companies (like GE, P&G, PepsiCo) about strategies that work and those that don’t. Learn how to make innovations in emerging markets happen, and how they can unlock greater opportunity worldwide in this playbook for the next generation of global growth. Welcome to the Real World: Finding your Place, Perfecting your Work, & Turning you Job Into your Dream Career by Lauren Berger A smart, practical, and entertaining guide to uncharted professional landscapes – from navigating a minefield of personalities, handling your boss, and identifying priorities, to ultimately succeeding in a new career. New professional? Switching employers or careers? This engaging, straightforward read shares essential information on managing, overcoming, and triumphing through the transition. 7676 Woodbine Ave., Unit 10, Markham, ON, Canada L3R 2N2 905-940-2378 The Social Innovation Imperative by Sandra M. Bates When your expected ROI is measured in social good over dollar value, the innovation game is played very differently. For a decade Sandra M. Bates has been helping major corporations create new markets for technology, consumer goods, and services. Now she turns her attention to the social sector, exploring why innovation in social sectors – like health care, conservation, education – is unique, and providing the framework and tools for driving innovative change to impact our world. Nonprofits, corporations, and government agencies will learn to investigate needs, innovate the solution, and implement their plan in this guide to generating meaningful social value. The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies by Erik Brynjolfsson & Andrew McAffee Digital technologies will soon diagnose diseases more accurately than doctors, apply big data to transform retail, and autonomously transport us to our destination. Leading thinkers at MIT, the authors reveal the forces driving the reinvention of our lives and economy. Drawing on years of research and up-to-the-minute trends, they also outline best strategies for a new path to prosperity in a world where education, collaboration, and professions – from lawyers to truck drivers – are forever transformed. For more information visit www.markhampubliclibrary.ca Servicing all your accounting and tax needs • Bookkeeping Services • Income Tax Preparation & Planning • HST/GST • Payroll Services • Manual or Computerized Tel: 905-471-7979 Email: [email protected] www.jpaccountingtax.com 114 Anderson Avenue, Suite 7C, Markham, ON L6E 1A5 The VOICE Spring 2015 13 HR ISSUES How to get an Underperforming Employee to Improve L et’s face it, most people don’t wake up in the morning and think to themselves: “How do I steal from my employer by doing a lousy job?” The reason for this is that people normally associate feelings of safety with remaining employed. This is normally not assured with blatant or continuing underperformance on their part. If you can alleviate or improve upon whatever is impeding your apparent underperformer’s performance, the problem is often resolved quickly. This can be anything from: • A lack of knowing what exactly is expected at a level they really understand, and can therefore act upon • A poor manager who demotivates or, • Personal problems that are distracting their focus from timely, accurate work. This is not about prying too deeply into an employee’s personal life. Instead, it is about asking, respectfully and supportively how you can help remove potential barriers to their individual performance. If, after understanding what is really going on with a particular employee you still believe it is a performance problem, ask them how you might be able to help them perform better in their job? Nicely, calmly, usually privately, and in a spirit of discovery, while taking notes, ask them: “How could we as an organization, or me as a leader here, enable you to perform better in your role?” Listen carefully to their responses, and let them come back to you if they want to think about it for a day or two. Maybe they need some training, coaching, mentoring, support, tools, safety gear, ventilation, or potentially something else. Enable them if it seems reasonable. Normally, by working with someone to get their performance level up, the sheer fact that you’re doing so provides an improvement. Finally, if and when you and/or your qualified human resources consultant has worked through the diagnostic work to determine that there is an actual individual performance problem, then, and only then, should you consider additional action. For a typical small to midsized employer, this will involve a progressive discipline process as laid out in your HR Policies & Procedures documentation, tied back to their employment R 14 The VOICE Spring 2015 agreement. This normally starts with a verbal warning, working through one or more written warnings, moving up to a formal performance improvement plan, and failing improvement, potential termination, normally ‘without cause’ in a legal sense. Pay-in-lieu of notice, statutory severance, career transition, and common law considerations should all be considered. In reality, these parting goodies as they are often viewed are to provide a bridge for the employee as they work to find their next employer. You are also covering off some of their basic physiological and safety needs in the process. Don’t begrudge them, its wasted energy. We recommend you pay up and move on. Alex Gallacher CHRP, CHRE is Managing Director of ENGAGE HR™ www.engagehr.com Canada-Ontario Job Grant Employers.... Get a Grant to Train Your Workers! Are you investing in or thinking about: • professional development • certifications or re-certifications • third party training for your staff The Canada-Ontario Job Grant is a new initiative that assists employers with their workforce training needs. You could qualify for up to $10,000 per employee. As a COJG Service Provider, yorkworks will facilitate your application and approval process. Inquire today, watch your business grow and succeed! yorkworks Employment Services 111 Sandiford Dr, Stouffville, ON L4A 0Z9 www.yorkworks.ca | 905.640.2352 The VOICE Spring 2015 15 3 If SPECIAL EVENT TUESDAY, MARCH 31, 2015 7:30 - 9: 00 A.M. MARKHAM CONVERGENCE CENTRE 7271 WARDEN AVENUE $20 + HST Speaker: Dr. Ian Dawe Physician in Chief, Ontario Shores Centre for Medical Health Sciences Bell Let’s Talk is a multi-year charitable program dedicated to mental health Since 2010, Bell has committed $73.6 million to mental health initiatives in Canada 16 The VOICE Spring 2015 REGISTRATION MARKHAMBOARD.COM 905-474-0730 X. 3025 [email protected] Considerations for Your Surplus Assets you have surplus cash consider, as you can call the loan accumulating in your principal back any time. company, you may be Tax-exempt life insurance wondering whether To avoid exposing income from to retain or withdraw the funds. surplus assets that you know There are a number of ways to will be passed on to your heirs, protect your hard-earned wealth, consult your insurance advisor and things to consider before you about putting these highly taxed take action. (typically interest-bearing) assets If you haven’t already done so, into a tax-exempt life insurance have a comprehensive financial policy where the investment plan prepared for you. If it is income can grow on a tax-free determined that there are surplus basis. This way, tax on the income assets that you are unlikely to earned on these need during your surplus assets that lifetime, even under Note that due to would normally be very conservative paid to the Canada assumptions, the potential of Revenue Agency consider these escalating health(CRA) could instead options to protect care and long-term be paid to your them from high beneficiaries in the taxes and creditors. care costs, it is form of a tax-free essential that you Lifetime gifts death benefit. If are prepared for If you have surplus needed, you could these contingencies access the investment assets that you will definitely account within the before redirecting not need during your surplus assets. life insurance policy retirement, or if you either directly or are planning on through tax-free providing funds to your children policy loans, which could be or grandchildren, then it probably repaid after death with part of the does not make sense to continue death benefit. exposing the income from these Charitable giving surplus assets to your high Donating some of your surplus marginal tax rate. assets to charitable organizations Instead, consider giving some can help create a charitable legacy, of these surplus funds to family while providing some tax relief. members now, either directly Recent tax changes also make it or through a trust if you do not more attractive to donate publicly want the children to have control listed securities such as shares that of these assets. There will be no have appreciated in value. Now, attribution on any investment when you donate certain publicly income earned on the gifted listed securities in-kind to a funds if the child is 18 or older qualified charity, your capital gain and no attribution on capital on the disposition may be exempt gains if the child is under 18. In from tax. the case of a trust, it is important that the trust be properly Sunil Heda, CPA, is an Investment & structured to avoid the attribution Wealth Advisor with RBC Dominion Securities Inc. Member CIPF. This rules. If you are concerned about article is for information purposes only. direct gifts to your children, then Please consult with a professional lending funds to a family trust advisor before taking any action and providing your children with based on information in this article. only the income earned on the Reach Sunil at 416-571-0369 or [email protected] lent funds is another strategy to 7 Tax Advantages through Incorporating Your Business As the operator an unincorporated business, tax-planning opportunities may become available by incorporating, particularly if the company qualifies as a Small Business Corporation (“SBC”). A SBC is a CanadianControlled Private Corporation (“CCPC”) where at least 90% of the fair market value of the assets are used in an active business carried on in Canada. Through incorporation, you will become the shareholder and employee of a separate taxable entity, without triggering any income tax. 1. Limited Liability A sole proprietor is liable for business debts and may subject his/her personal assets to creditor claims or lawsuits that may arise in the business. As a shareholder, to the extent that you have not provided personal guarantees, generally, your personal assets should be protected. However, directors and officers of the corporation may be held liable for certain activities of the corporation. 2. Small Business Deduction (“SBD”) Active business earnings of a CCPC may be eligible for reduced rates of Federal and Provincial tax. The Ontario small business rate is 15.50% on the first $500,000 of taxable income and 26.50% thereafter. 3. Deferral of Tax For a sole proprietor in Ontario, once regular earnings reach $220,000, income will be taxed at the top marginal personal tax rate of 49.53%. For an Ontario CCPC, active business earnings are taxed at 15.5% on the first $500,000 of taxable income. Funds not currently required personally can be retained in the corporation for corporate uses, providing a deferral of up to 34.03% until dividends are paid. 4. Tax deferral on bonuses By choosing an appropriate yearend of the corporation, a bonus can be declared and deducted by the corporation in its fiscal year, but not taxed to you until the following calendar year. 5. Estate Planning and income splitting Through structuring of the company’s share capital, you can maintain your investment and control in the corporation while providing for future company growth to accrue to shares held by others. This can provide for ongoing income splitting with family members and minimize taxes arising on your death. 6. Capital Gains Exemption (“CGE”) The lifetime CGE, available to Canadian residents, shelters up to $800,000 of capital gains from tax on the sale of private company shares, which are qualifying dispositions. There may be opportunities to multiply the CGE with other family members. Careful planning is required to take advantage of the CGE and reduce or eliminate any income taxes on the disposition of your company shares. Mayor’s Annual Business Address & Luncheon Presented by 7. Allowable Business Investment Loss If your private corporation should fail, the loss of your investment in shares or debt may qualify as a business investment loss, one half of which would be deductible against any income source. Wednesday, May 27, 2015 Hilton Suites Toronto/Markham Conference Centre & Spa Sponsored by: MINKEN EMPLOYMENT LAWYERS Charles Hargest, CPA, CA Senior Manager, Tax BDO Canada LLP Markham RESERVE YOUR TICKETS TODAY! online: www.markhamboard.com email: [email protected] • phone: 289-844-3025 The VOICE Spring 2015 17 2 0 1 4 AW A R D W I N N E R NVISION SOLUTIONS Business Employer of Excellence By Samantha Sim F or web design and marketing agency nvision solutions talent is number one. Since the company’s founding eleven years ago, owner George Arabian has made it a priority to build a strong, loyal team. “Employee retention is one of the most important things in our industry. It’s already very saturated with people claiming to have the right skills, but that’s not necessarily true,” he says. “Once we find a well-rounded person we want to make sure they stay with us.” Arabian uses a thoughtful approach to recruiting and retaining top talent by emphasizing personal growth with initiatives such as “creative money”. Every employee receives a budget they can use towards creative activities, which can be anything from concerts to art supplies. Or on a regular basis they’ll have Friday outings where the team hangs out outside of the office. For nvision it isn’t just about retaining talent, it’s also about keeping the team happy. Not only has this strategy benefitted employees, it’s been good for business too. In fact, the company is launching its new website design – which will feature a page focusing on who each staff member is and some background information on them. “I want businesses looking for our services to see nvision as having the best employees within our industry,” says Arabian. “When they see our team is talented and happy they want to work with us and it does help us attract clients.” The nvision way of creating Bruce Ander, chair of the Awards committee, presents George Arabian, President, nvision solutions with the Business Employer Of Excellence Award. the best work environment extends beyond its leadership. Arabian cites an example when his group of his staff were going to Miami for a conference, which was paid for by the company. There was one employee who originally wasn’t supposed to attend but deserved to go. His team was willing to forego certain luxuries, such as staying at a less expensive hotel and taking a different flight, so that their budget could accommodate this extra person. The company is looking to continue its success of keeping employees happy with the launch of its new health and wellness program later this year. The new program will use gamification to encourage the team to be healthier. This is the process of incorporating rewards and social interaction to a health and wellness program with the intention of encouraging more employees to participate. IMAGINE BEING CLUB IMAGINE BEINGAAMEMBER MEMBEROF OFAAPRIVATE PRIVATEGOLF GOLF CLUB LIKE MEADOWBROOK. MEADOWBROOK. NOW IMAGINE IT STARTING AS LOW AS $42.50 A MONTH NOW IMAGINE DOING ITFROM FOR ONLY $42.50 A MONTH. Meadowbrook Golf Sideroad, Markham, Ontario. 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