Category: Definitions

Under cash method of accounting, you report income in the fiscal period you receive it and deduct expenses in the fiscal period you pay them.

Most businesses have to report income and expenses using accrual method of accounting for income tax purpose. Under accrual method of accounting, you:

Regular remitter is a new employer or an employer whose Average monthly withholding amount (AMWA) two years ago was less than $15,000. Regular remitter has to remit Payroll deductions on or before 15th day of the month following the month the payroll deductions were made.

Quarter remitters remits Payroll deductions once every three months. To qualify for quarterly remitting, an employer has to:

Perfect compliance history may qualify you paying payroll remittance quarterly or corporate income tax installments quarterly. It saves you administration costs of filing and remitting taxes. And it also provides the benefits of tax deferral.

There are two groups of accelerated remitters: threshold 1 and threshold 2.

Average monthly withholding amount (AMWA) is used to determine which type of payroll remitter you are: regular remitter, quarterly remitter, or accelerated remitter.

Place of business means any premises, facility, or installation used to carry on business, whether or not it is used exclusively for that purpose. Premises, facilities, or installations may be considered to be a place of business whether they are owned or rented, or, in some cases, where they are simply available to the business.

Permanent establishment of a person generally means:

The benefit year is the 12-month period during which the Canada child tax benefit (CCTB) payments are paid. The benefit years runs from July 1 of the year following the base year to June 30 of the next year. For example, CCTB payments calculated based on the 2011 income tax return will start being issued…