Management Fee Bonus
Management Fee Bonus accrued in 2008, paid in 2009. Is a T-slip required?
I'm fairly new at bookkeeping for corporations and deal mainly with small sole-proprietors. This year I took over the books for a small corporation.
Using the Trial Balance and Adjusting Entries provided by the large accounting firm the client deals with for tax planning purposes, I set up the books and am now putting together T-slips.
One of the adjusting entries showed an accrual for a large management fee bonus in 2008. Do I need to put this on a T4 slip or T4A slip?
The only thing the firm could tell me was that it was going to be picked up on the client's 2009 tax return and offered no further assistance.
Due to the time constraints of the T slip deadline ...
... which is usually February 28 ... but this year it falls on a Sunday so ... the deadline for T slips is now Monday, March 1
... I answered Lucy by email.
Before I post my response to Lucy ... and her reply back, let's see if any of you loyal work from home bookkeepers respond ... I get tired of listening to myself!!
As I see it, the dilemma seems to be that the accrued fee was paid within 180 days of 2009 ... but no withholding taxes were taken. Now it's 2010 with the T slip deadline looming ... what would you do?