If you own a small business and pay salary or wages to staff or give a taxable benefit to another recipient, you must pay source deductions from the amount, which you are then obligated to remit to the Canada Revenue Agency (CRA). Filing before deadlines is not as easy as it sounds. However, with the help of our expert accountants, you don’t need to worry about dealing with this process on your own!
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CPA4IT’s expert team of accountants can help you retain more of your hard earned money inside your corporation by devising tax strategies that help small business owners increase their net worth and decrease their financial stress. Looking to discuss this further? Don’t forget to click here and book a FREE consultation with one of our experts to discuss this further.
The source deductions that you must withhold and remit to the CRA include any combination of:
- Canada Pension Plan (CPP) contributions;
- employment insurance (EI) premiums; and
- federal, provincial, or territorial income tax.
This means that as an employer, when you pay a salary to an employee, you will have to deduct CPP, EI and income tax. It is important to remit these source deductions on time to avoid any penalties or fines from the CRA (For more information, review the CRA website Failure to pay amounts deemed to be held in trust.)
The CPA4IT team helps small business owners file all required tax and source deduction reporting on time according to the CRA deadlines for source deductions below.
Ontario Small Business Filing Deadlines for Taxes, Retirement Contributions and Source Deductions
Below are key deadlines for Ontario small businesses to submit payments and file returns for annual filings. To learn more about which type of remitter your business is, your obligations for filing source deductions and other returns, visit the CRA website.
January 10 or 15
Source deduction remittance due date for qualifying small businesses.
Threshold 1 Accelerated Remitter must pay by Jan 10th ;
Threshold 2 accelerated remitter must pay by Jan 3rd.
The CRA defines remitter thresholds based on the amount of a business’ total average monthly withholding amount. For example, your business is considered a Threshold 1 remitter if your business’s total average monthly withholding amount (AMWA) for two years ago was in the range of $25,000 to $99,999.99. If your cheque date (payday) is before the 16th, your remittance is due by the 25th day of the same month.
T4, T5 information returns filing deadline. If we are completing these for you, please notify your Account Manager by email that you wish us to provide this service.
RRSP contribution deadline.
Family trust return deadline.
U.S. personal income tax return deadline.
Canadian personal income tax shelters deadline for taxes owing for the previous year.
Sole proprietor personal income tax return deadline, however, if taxes owing, payment is due on or before April 30.
Additional key business filing deadlines for Ontario businesses
Payment of corporate income taxes are due within 3 months of your corporation’s year-end date. (Interest accrues after 3 months if money owed is not paid).
Filing of corporate income taxes are due within 6 months of your corporation’s year-end date. Late filing penalties & interest accrue after 6 months.
Annual returns for Ontario corporations are due within 6 months of your corporation’s year-end date.
There are many deadlines to keep track of for Ontario small businesses and independent consultants. It is critical to keep track of these deadlines to avoid fines and penalties. Contact CPA4IT to help you manage these deadlines and take care of the associated filings to ensure you meet all CRA compliance requirements.
Having a Hard Time filing before Deadlines? Still not sure? Don’t worry. We’ve got you covered! Our team of expert accountants will take care of all your financial responsibilities to put you in a healthy spot. Our goal is to help you organize your finances, create wealth, and transform that wealth into a legacy. Don’t forget to click here and book a FREE consultation with our team of experts to discuss this further