Over the winter term we grew our staff, organized more educational events, expanded our public relations activities, as we work towards the launch of our regulated services next year.

Events
We held two public events for the term to help people with their individual finances and learn more about the financial side of venture creation.

• Budgeting workshop
• Financial Foundations for Founders

Competitions
We competed in several business plan and pitch competitions. We had good results in some and got feedback, reactions, and input from all of them.

• Enterprize Canada Central Regional, second place
  
• Queen’s Entrepreneurs’ Competition
  
• Enterprize Canada national, semifinalist
• UW Nicol Award, top-five finalist
• Laurier Entrepreneurship Competition, third place
  
• TiEQuest Toronto, stage 5

Media

We produced our Whiteboard video “The Tree”

Our Join our team video supports our recruitment efforts this term.

Staff

Thank yous
Thank you to all the directors and staff who contributed to our growth and success this term.
Helena Cao
Mark Haley
Nicole Covello
Matt Bartley
Tian Lei
Avijit Bandyopadhyay
Vinson Fong
Sally Lee
Nathan Shantz
Jerry Liu
Allen Wang
Jennifer Harvey
Ian Pillai
Callee Rice
Cory Lee
Karolina Deoniziak

Possible goals and areas for improvement

Any Laurier or Waterloo student is welcome to apply. The deadline for applications is during the first week of classes in May.

To find out more read about our staff opportunities for Spring 2012 and apply through our online application form.

• Photos from the production of our WaterlooBanking recruitment video
• Staff opportunities starting Spring 2012

Paying tuition is part of being a student. It is always depressing when your bank account balance goes down after paying tuition, but you can recover some of it through the tax savings of the tuition credit.

The tuition credit is meant to save the student from paying excessive taxes on top of living expenses associated with being a student. It is the government’s way of relieving some financial burden of not only the student, but also their supporters (This will be discussed in the “Benefits” sections later in the post).

It does have some limitations. One being that the total of all fees paid to the one institution must be greater than $100 in order to be eligible for claim. Which means if one were to take extra courses at a different institution, the tuition is eligible for claim only if it exceeds $100. Also, if the tuition is paid by others such as training programs, employers, or employer of family member, will not be eligible for claim. Official tax receipt from the education institution is needed as proof so that tuition credit can be claimed.

Education credit – Tax reward for knowledge seekers

In addition to tuition credit, the government allows students to claim further tax reduction through what is called an education amount. This amount grants tax savings of $400 per month for full-time students and $120 per month for part-time students.

However, like the tuition credit, if the student receives allowances, benefits, or reimbursements from sources other than family members in regards to an education program, or cost of the courses will not be eligible for this amount.

Textbook credit – Lessening the “load” of your books

As long as students are eligible for the education credit, they can also claim textbook credit of $65 per month of full time students, and $20 per month for part time students. This is government’s way of making those $200+ textbooks look a bit cheaper. Since this credit depends on the individual’s eligibility of education credit, it follows the same restrictions.

Easy steps to apply for your credits

Taxation in general is a tedious task. Luckily, all the above credits all fit under in one form (Federal Schedule 11) and it is one of the easier ones to complete. Here, we will go through the form line by line. (here is a link for your reference: http://www.cra-arc.gc.ca/E/pbg/tf/5000-s11/README.html)

Line 1: If this is your first year of post secondary education, this line would be blank because you do not have accumulated unused tuition from previous terms. If this is not your first year of post secondary education, then you can refer back to previous year schedule 11 form and copy the amount from line 25. In cases where you did not claim any tuition before, refer to a tax specialist and see if you can report all unclaimed tuition together.

Line 2: This is where your current year tuition fees paid are reported. Note on the form it says “Eligible” tuition fees. This means it is the portion of tuition that is not paid or reimbursed by a third party (other than parents or guardian) and that it is paid to a qualifying institution or program. If you have obtained a tax receipt from the institution, the amount stated on the receipt can be directly transferred.

Line 3, 4, 5: The first two lines are used to calculate education and textbook amounts for part time students. Simply state the number of month studied as a part time student and multiplied by the stated factor to arrive at the result on the right side, add and transfer the result to the most right position on line 5.

Line 6, 7, 8: Same structure as line 3, 4, and 5 except it is designated for full time students.

Line 9: Add amounts from line 2, 5, and 8 to arrive at the total 2010 tuition, education, and textbook amounts.

Line 10: Add amounts from line 1 and 9 to arrive at total available tuition, education, and textbook amounts.

Line 11: This line requires the individual’s taxable income from line 260 of the tax return, once you have obtained that amount, simply transfer it to this line.

Line 12: To most students, this line is usually left blank. It requires the calculation of other non-refundable credits stated on schedule 1, which are usually empty. If you were working during the school term or have been on Co-op, then you will have to fill out the schedule 1, tally the results from line 1 to 19, and transfer the total to this line on schedule 11.

Line 13: The difference between line 11 and 12. Input the value “0” if the number is negative. This means that, if your taxable income is already lower than non-refundable credits, then the individual is not taxable (do not have to pay tax) and the tuition credit will not be able to further reduce taxes.

Line 14: Input the lesser value between line 1 and line 13.

Line 15: The difference between line 13 and 14.

Line 16: Input the less value between line 9 and 15. Note that if line 13 is 0, then line 15 will also be 0, which leads to line 16 being 0. If this is the case, then the tuition credit does not contribute to reducing tax because the individual is already not taxable.

Line 17: Add lines 14 and 16 to arrive at the total tuition, education, and textbook amounts. Once you obtained the result, transfer the amount to line 323 of the Schedule 1.

The main benefit of these credits is the ability to reduce tax obligations for students. It can also be transferred to supporting individual of the student and reduce their tax obligations as well. The credit transfer can save money for the supporting individual by increasing the amount of non-refundable credits on schedule 1 which ultimately reduces the Net Federal Tax. Although this option is great, it does have a limitation. The eligibility of the transfers, which states that the credit must be used to first reduce the student’s own taxes to 0 before the remainder can be transferred. In other words, if the student makes too much income from employment during school and requires all or most of the credit to reduce the income tax, then there would be less for transfer. Thus, not all of the tuition amounts are available for transfer if the student works. Even in the case where students do not work, the maximum tuition transfer is $5000 per year.

Now that we figured out the total tuition, education, and textbook credit as well as the benefits of transferring tuition, let us go through how to apply for credit transfer, continuing from line 17 of Schedule 11.

Line 18 to 20: These 3 lines are meant to calculate the total unused credit by the student, which can be transferred.

Line 21: Enter the amount from line 9. If this amount is more than 5000, then enter 5000

Line 22: Enter the amount from line 16.

Line 23: States the difference between line 21 and 22, which is the maximum transferable amount.

Line 24: Students may state the amount to be transferred on this line. The maximum transferable amount is stated on line 23, if the student wishes to transfer less than the maximum, then the student may state the amount willing to be transferred here.

Line 25: States the difference between line 20 and 24. This is the unused federal amount available to carry forward to a future year. This line acts as line 1 for next year’s schedule 11.

One final step in completing the tuition transfer is to notify the person to whom the credit is being transferred. Transfer the amount on line 24 of the student’s schedule 11 to line 324 of the transferee’s (the person receiving the transfer) schedule 1. And voila, you have completed the credit transfer.

Taxation is different in all provinces of Canada, and students are treated differently as well. Check up on your provincial taxation website and look for any provincial credits available. For residents of Ontario, there are provincial tuition, education, and textbook amounts that can be claimed. The form is very similar to the federal schedule 11 that you have just learned about. Complete the provincial form for more tax savings.

If your friend brushes you off or delays the payments, you need to have a face to face conversation with your friend about the loan. This is better than over the phone and certainly by email.  Set up a time to sit down and discuss.  Share your feelings and be sensitive to his or her space. If he feels backed into a corner, it is hard to create positive action.  Propose a repayment schedule that you think is fair and and a back-up strategy if it doesn’t work (i.e. talking to his parents, going to the small claims court).

Two consultants from Deloitte taught a room of Waterloo and Laurier students some of the financial principles they need to know as a part of starting and running an early-stage startup. Waterloo Banking Project and I2E brought Jennifer Gruber and Nick Dowbiggin to the Waterloo campus for the Financial Foundations for Founders event on 27 March 2012. Their presentation covered a variety of topics that impact new businesses ranging from business structure, tax planning, and expense tracking.

Business Organization
The speakers noted that most businesses start as sole proprietorships and as they evolve their structure may require a change to a corporation. The pressure to incorporate is generally higher for tech-based start-ups due to tax advantages that they can realize sooner than others.

1. Canadian Controlled Private Corporation (CCPC) – A CCPC is a corporation where 50% or more of the shares are held by Canadian residents. Being designated a CCPC qualifies you for some of the following benefits:
   1. Small Business Deduction – Charged a reduced tax rate on the first $500,000 of taxable income
   2. Capital Gains Deduction – Access to a one-time $750,000 capital gains deduction for gains earned on the sale of shares in a CCPC.
   3. SR&ED Claims – Tax credits provided by the CRA for corporations investing in R&D activities that lead to new, improved, or technologically advanced products or processes. The CRA holds free information seminars across the country that provide businesses with details on the eligibility criteria and filing process for claims. Check the
      detailed schedule of seminars to find one you can attend.

When deciding to incorporate there are a variety of factors to consider:

1. If expecting a loss, it may be advantageous to remain a sole proprietorship as you can use the loss against income from other sources, such as employment income.
2. If expecting significant income, you should consider your eligibility for the above deductions, government grants, as well as different tax rates that are applied to corporate income.

Incorporating can increase the complexity of your business due to it being a separate legal entity from the owner(s). Corporations require their own tax return, share capital and financial statements. When determining whether to incorporate or not, you need to weigh the benefits with the costs to ensure incorporation is worthwhile. It is appropriate to consult with an accountant, lawyer, or trusted advisors when coming to this decision.

Accounting & Financial Statements
The speakers also stressed the importance of accurately tracking all expenditures and sales for a new business. This is especially important when filing your tax return or trying to value your company. An excel template was provided to assist participants in tracking expenditures and sales which is available to download at the bottom of this blog post. As your business grows the investment in accounting software (Simply Accounting or QuickBooks) is essential to ensure proper record keeping. Financial statements are required to support relationships with bankers, lenders, and assist in business planning.

Creating accounting records early in a businesses life is considered to be good practice as it serves as a foundation for valuing the company, completing tax returns, as well as supporting the development of financial forecasts.

Waterloo Banking Project is planning for a future series of Financial Foundation for Founders events focusing on specific business issues and topics. Details for future events will be released soon.

Special Thanks To:
Jennifer Gruber, Nick Dowbiggin, Ryan Chen-Wing, Helena Hua Cao, Mark Haley, I2E, VeloCity

Disclaimer: information in this post is meant to be informative and should not be used in business decisions. It is recommended for readers to consult a professional when designing an organizational structure, filing/planning for taxes, or making any business decisions.

We are building towards the launch of our regulated banking services in 2013 and we require student staff to help realize our vision.

Waterloo Banking Project is creating a co-operative, student-focused financial services in partnership with a large, established financial institution. We are a startup and a social enterprise working to help students graduate with more money, less debt, and better financial skills.

Our social enterprise startup requires a broad range of talents and perspectives.

We will consider candidates from both WLU and UW, in any program, and in any year for roles in any department. Our focus for the spring term, though, will be on students in first, second, and third year, who can contribute in areas in which we want to develop, including: graphic design, software development, video production, copy writing, and policy development.

We are seeking applicants who are diligent, resourceful, and good communicators. Staff will be expected to commit a minimum of four hours per week, deal with unique challenges, and work effectively on individual and group projects.

The organization works on a not-for-profit basis and no positions in the project are paid. We focus on offering staff a valuable and rewarding experience as a part of their work.

Our organization consists of these departments:

1. Education – develop and deliver our financial education programs and events
2. Public Relations – handle external communications, marketing, and social media
3. Research and Finance – research and analyze data, develop financial models, track expenditures and create budget
4. Human Resources – coordinate hiring, communicates internally, organize orientation, training, and staff evaluation
5. Development – partcipate in fundraising, apply for grants

The deadline for applications is 11:59 p.m. Wednesday 9 May 2012.

To apply:

1. Fill out the Spring 2012 Application Form (Waterloo Banking Project)
2. Send your resume to info@waterloobanking.com with the subject line “[Your Full Name] | Waterloo Banking Project Application”

Waterloo Banking Project and I2E are holding an event that presents the financial basics and tools required to successfully establish and run a start-up.

Speakers from Deloitte will provide you with spreadsheets and advice to help with your initial process of starting a company. The event is free of charge and we will be providing sandwiches and drinks. We encourage any student interested in starting a business to attend.

Click here to RSVP

The topics covered are:

- Business organization
- Tax planning preparation
- Expense tracking
- Financial forecasting

Date: Tuesday, March 27, 2012
Time: 5:00 – 6:30 p.m.
Location: RCH306
RSVP for this workshop

For the month of March, we will be tweeting personal finance (and other money-saving) tips every day, custom-tailored for UW and WLU students. Every time you retweet our tips, you will be entered into a draw for a chance to win $20 in cash from us. It’s that simple.

What are you waiting for? Head over to our @WaterlooBanking Twitter feed, look for #GraduateRicher tweets, and start retweeting.

Rules:

1. The contest period is from 12:00am EST March 2 until 11:59pm EST March 31, 2012.
2. Limit of one (1) entry per person per tweet and up to a total of thirty (30) entries per person for the duration of the contest.
3. One (1) winner will be randomly selected from the entries for one (1) $20 cash prize at the end of the contest period.
4. Winners must be current students at the University of Waterloo or Wilfrid Laurier University, on study term or on co-op.
5. Duplicate entries (through multiple accounts) will be disqualified at the discretion of Waterloo Banking Project.
6. Waterloo Banking Project directors and staff may participate but are not eligible to win.

Directors of Waterloo Banking, Ryan Chen-Wing, Helena Cao, and Mark Haley, had the opportunity to meet with Vancity and Central1 Credit Union during their trip to Vancouver in February to compete in the Enterprize Canada finals.

The team met with the manager of community engagement from Vancity who works with social media, community initiatives and financial literacy. They discussed their plans and ideas with her and she asked questions.

Vancity is Canada’s largest Credit Union and has over 417,000 members entrusting them with $15 billion in assets, $2 million of which come from Vancity’s Youth Credit Union program. The program is implemented in 52 elementary and secondary schools and has set up mini-financial institutions to help young people learn about money management and improve their math skills.

The Project also met with product managers and creative staff at Central1 Credit Union, which is the merged central credit union for both B.C. and Ontario. In addition to clearing services they offer technology and infrastructure support and marketing services for credit unions. The team had the chance to learn more about their services such as their apps, online services, money transfer, and personal
financial management services.

The Central1 creative team also demoed their efforts in promoting credit unions such as creditunionsarehelpinghere.com.