Most businesses have to report income and expenses using accrual method of accounting for income tax purpose. Under accrual method of accounting, you:
As an employer, you have to know the special situations where you have to start or stop deducting an employee’s Canada Pension Plan (CPP) contributions. Otherwise, CPP may be under or over deducted.
Everyone in Canada between age 18 and 70 has to pay into Canada Pension Plan (CPP) (QPP in Quebec) on pensionable earnings. You and your employer each pay half of the contributions. If you are self-employed, you pay both portions.
As an employer, you have to get the correct social insurance number (SIN) from each new employee within three days of them starting to work. If the employee doesn’t give you his or her SIN and you do not make a reasonable effort to get it, you may be subject to a penalty of $100…
As an employer, you are responsible for deducting, remitting, and reporting payroll reductions. The following are the responsibilities of an employer:
Form TD1, personal tax credit return, is used by the employer to determine the amount of income tax to be deducted from the income of an employee.
The following expenses are not eligible for medical expense tax credit although many people may claim them on their income tax returns incorrectly: athletic or fitness club fees; health programs; over-the-counter medications, vitamins, and supplements, even if prescribed by a medical practitioner; organic food; birth control devices (non-prescription); blood pressure monitors; personal response systems such as…
For new or regular remitters, the payroll remittance is due on or before the 15th day of the month after the month the source deduction is made. If your remittance due date is a Saturday, a Sunday, or a public holiday, your remittance is due on the next business day.
Payments made for following provincial and territorial health plans are not qualified for medical expense tax credit:
The source deductions have to be remitted to the Canada Revenue Agency (CRA) on or before the 15th day of the month immediately following the end of each quarter: