15 Questions
Which of the following is NOT a factor considered when determining compensation for professionals in an architect's office?
Working conditions
Where can architects find information on standard levels of compensation?
All of the above
What should an architect seek for proper tax planning?
Accounting advice
Which tax must be collected on all income in an architectural practice?
Goods and Services Tax (GST)
How often is income tax deducted by the practice for employees?
Monthly
Which of the following taxes is NOT deducted from employees' income by an architectural practice?
Provincial income tax
Where are federal income tax and EI paid in Québec?
Federal government
Which tax is remitted in quarterly installments based on the previous year's income taxes?
Personal income tax
Which tax is paid as supplies are purchased and is applicable in British Columbia, Manitoba, and Saskatchewan?
Provincial sales tax (PST)
Which tax must be collected by architectural practices in Quebec?
Quebec Sales Tax (QST)
If an architectural practice is incorporated, which tax will be estimated by the accountant and should be remitted quarterly?
Corporate taxes
In some municipalities, what may be charged for operating a business in their jurisdiction?
Business taxes
In some municipalities, what may an architectural practice require in order to provide services for a project located in that municipality?
Business licence
What are the penalties for late payment of taxes?
Severe
How often should taxes be remitted?
Quarterly
Study Notes
Compensation for Professionals
- Experience, education, and skills are factors considered when determining compensation for professionals in an architect's office.
- Location, type of projects, and firm size are also factors considered when determining compensation.
- Information on standard levels of compensation can be found in the Royal Architectural Institute of Canada's (RAIC) biennial survey.
Taxes and Remittances
- Architects should seek professional tax advice for proper tax planning.
- Income tax must be collected on all income in an architectural practice.
- Income tax is deducted from employees' income by the practice every month.
- Employment Insurance (EI) premiums are deducted from employees' income by the practice.
- Goods and Services Tax (GST) and Provincial Sales Tax (PST) are not deducted from employees' income by the practice.
- In Québec, federal income tax and EI premiums are paid through Revenu Québec.
- Corporate income tax is remitted in quarterly installments based on the previous year's income taxes.
- Provincial Sales Tax (PST) is paid as supplies are purchased and is applicable in British Columbia, Manitoba, and Saskatchewan.
- Québec Sales Tax (QST) must be collected by architectural practices in Quebec.
- If an architectural practice is incorporated, corporate income tax will be estimated by the accountant and should be remitted quarterly.
Business Operations
- In some municipalities, a business license may be required to operate a business in their jurisdiction.
- In some municipalities, an architectural practice may require a business license to provide services for a project located in that municipality.
- Penalties will be incurred for late payment of taxes, and taxes should be remitted regularly to avoid penalties.
Test your knowledge on compensation issues in architectural offices. Learn about the factors that influence compensation for architects and other professionals, and understand how different roles are rewarded. Explore the challenges of maintaining fair and equitable compensation in the field of architecture.
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