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Tax Compliance Filing Deadlines

Canadian Due Dates By Type of Tax

This is "The Deadlines" page. It discusses tax compliance filing deadlines by tax type.

You can scroll down to find what you are looking for or click on one of the QUICK LINKS to go right to the spot.

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HELLO and a very warm welcome to bookkeeping-essentials.com .

Once you have found the tax compliance information you were looking for, I invite you to get a cup of tea, take a few moments to relax ... and discover the wealth of information on this site ... designed to help work from home business owners who do their own books and bookkeepers that are home based.

For example, you may be interested in "The Rates" page which has tax compliance rates or maybe "The Tax Plan" page which is the first article in a series on small business tax planning opportunities ... Whatever your interest, I hope you enjoy your visit and come back often. :O)


CRA is offering HST transitional webinars ... if you don't want to attend their live seminars. Here is the full link address to sign up ... http://cra.apandrose.com/transition-to-hst ... just in case they move it around on their site. There are 8 one hour sessions to choose from between March 16 to June 8 ... attending will help ensure your are tax compliant.

There are also CRA webcasts available. Go to CRA web site > navigation button - Information about CRA (on the left hand side)> Other topics - HST for Ontario and BC. Click on webcasts on the right hand side in the Information for Business box.


Notice to Site Visitor

I developed this tax compliance page as a handy reference for myself. While I do my best to ensure it is accurate and complete, I make it available for your use with the understanding that I cannot be held liable for errors and/or omissions. Please make yourself familiar with my site policies prior to relying on any of the information on this site.


SBI! 2.0


Quick Links to Due Dates on this Page



SBI! Order Page





Handy Bookkeeper's Reference
March 2010

Federal Tax Compliance DUE DATES

Filing DeadlineWeek DayTax TypeTax PeriodForm to be FiledPayment Deadline
October 14, 2009WednesdayHST Self Assessment BeginsJuly 2010 forwardGST34-2 Ehold until 1st report due after July 1
PAST DUE
January 15
FridayPayroll
Quarterly
Oct to Dec 09PD7AJanuary 15
PAST DUE
February 1
MondayGST/HST QuarterlyOct-Dec 09GST34-2 E February 1
March 1Monday GST/HST MonthlyJanuaryGST34-2 EMarch 1
March 10WednesdayPayroll Semi-MonthlyFebruary
16-28
PD7AMarch 10
March 15MondayPayroll MonthlyFebruaryPD7AMarch 15
March 15MondayQuarterly Tax Installment2010INNS3 EMarch 15
March 25ThursdayPayroll Semi-MonthlyMarch
1-15
PD7AMarch 25
March 31Wednesday GST/HST MonthlyFebruaryGST34-2 EMarch 31
April 30FridayAnnual Tax Payment
Self-Employed
2009T1 (T2125)April 30
May 1SaturdayHST Billing Begins
(relating to
July 1)
July 1 forwardGST34-2 Ehold until 1st report due after July 1
June 15TuesdayAnnual Tax Return
Self-Employed
2009T1 (T2125)June 15
June 15Tuesday GST/HST Annual2009GST34-2 EJune 15


Province - British Columbia Tax Compliance DUE DATES

Filing DeadlineWeek DayTax TypeTax PeriodForm to be FiledPayment Deadline
PAST DUE
February 25
ThursdayPST MonthlyJanuaryFIN 400February 25
March 23TuesdayPST MonthlyFebruaryFIN 400March 23
March 1MondayWCB Quarterly Filer 2009Employer's Payroll & Contract Labour Report Form 1810March 1
March 5FridayWCB Annual Filer 2009Employer's Remittance Form 1820March 5
April 20TuesdayWCB Quarterly Filer Jan to Mar 10Employer's Remittance Form 1820April 20

You should have received your base rate and classification unit letter from WCB for 2010 in December.




Goods and Services Tax (GST)
Harmonized Sales Tax (HST)

Click here for March, 2010 tax compliance deadline dates.

It's important to remember GST/HST funds are collected on behalf of the government. They are held informally in trust by your business until remitted.

Your GST/HST return is paper filed on form GST34-2 E. The bottom portion of the form includes a line for remitting your payment. Do NOT use forms RC158 or RC177 to remit your normal reporting payment.

Once you are registered for GST, Revenue Canada mails the form ahead of your deadline. This enables you to meet your tax compliance deadline.

Online filing is now available. You should step outside of your comfort zone and try it if you are still filing a paper return. It's quick and easy to use. There are two ways to file online:

  1. GST/HST NETFILE - You will still need the paper form GST34-2 E sent you as it has your online access code on it.
  2. My Business Account - You will NOT need the access code printed on the paper return. You will need an epass.

When filing online (through GST/HST NETFILE or My Business Account) and a balance is owing, you have three ways to pay it:

  1. Pay it using CRA's new online service My Payment. There is a $50,000 threshold.
  2. Pay it online through your financial institution. You have to pay a one time admin fee to begin using this service.
  3. Pay by cheque.
    • When paying by cheque, use form RC158 E, GST/HST Netfile/Telefile Remittance Voucher to remit your payment. This form is included on page 9/10 in your mail out from CRA.
    • Page 7/8 of your reporting package has form RC177 E for balance due remittances required for use by annual filers.


Your GST/HST tax compliance due date is determined by your reporting period. Reporting periods are determined by your annual sales ... not whether you are a corporation or a sole proprietor.

Annual SalesAssigned Reporting PeriodOptional Reporting PeriodGST Filing DeadlineGST Payment DeadlineGST Installments* Due
L.T. 1.5 millionAnnualMonthly or Quarterly3 months after year-end3 months after year-endOne month after each of your fiscal QUARTERS
L.T. 1.5 millionAnnual Dec 31 year-endMonthly or QuarterlyJune 15April 30One month after each of your fiscal QUARTERS
1.5 to 6 millionQuarterlyMonthlyOne month after end of reporting periodSame as filing deadlineNot applicable
G.T. 6 millionMonthlyNo optionsOne month after end of reporting periodSame as filing deadlineNot applicable

image of two accounting beans

* If your net tax in a year is $3,000 or more, an annual filer must make equal quarterly installments (report them on line 110 of your GST return) in the next year. So here is ...

The Bookkeeper's Cash Flow Tip - If you are an annual filer, you should consider opting to file quarterly so you can claim your offsetting ITCs faster.


Each period has an optional reporting period that you may opt for. Why you might ask?

image of three accounting beans

Small business owners often intermingle these funds with their own (instead of holding them in a separate account). Then they end up using these funds to meet their cash flow requirements ... and get themselves in hot water when the funds are not available to remit to CRA come filing time.

By opting for a more frequent reporting period, you are less likely to think of the money as your own ... and less tempted to spend the funds held in reserve for the government. That's why my preference is to reduce your risk by filing quarterly.

image of three accounting beans

I've seen some business owners get into financial trouble by falling behind on their GST/HST remittances because ... they spent the GST/HST funds. There was no intentional duplicity on their part. It's just that they were positive they had enough input tax credits (ITCs) to offset the payment owing.



The Bookkeeper's Tip - your CRA GST annual filing deadline

If December 31 is your year-end date ... and you are an annual filer, consider this tip.

To meet the tax compliance requirements and avoid interest charges, pay your GST owing by the Balance Due Date of April 30th, even if you are filing by the June 15th deadline ...

Don't know if you are going to owe a payment or get a refund?

Your bookkeeper should be able to provide a fairly accurate ESTIMATE if your books are up-to-date. (You are getting your books done at least quarterly aren't you? If not, why not?)

If you want to switch from annual filing to quarterly (so you can recover your ITCs throughout the year instead of just once a year), it must be done before the end February. Complete Form GST20 Election for GST/HST Reporting Period ... or it can be done over the phone with a CRA representative.


Read more about GST tax compliance here.




B.C. Provincial Sales Tax (PST)

Click here for March, 2010 deadline dates.

Your BC PST tax compliance due dates are determined as follows:

Annual Taxes RemittedAssigned Reporting PeriodOptional Reporting Period*PST Filing DeadlinePST Payment Deadline
L.T. $3,000MonthlyQuarterly, Semi-Annually, Annually23rd day following reporting periodSame as filing deadline
$3,001 to $6,000MonthlyQuarterly, Semi-Annually23rd day following reporting periodSame as filing deadline
$6,001 to $12,000MonthlyQuarterly23rd day following reporting periodSame as filing deadline
G.T. $12,000MonthlyNo Options23rd day following reporting periodSame as filing deadline
Seasonal BusinessesCustomized by Ministry--23rd day following reporting periodSame as filing deadline


*Optional reporting periods are at the discretion of the Ministry. Amount of tax remitted, nature of business, and tax compliance history are considered.




Payroll - Source Deductions

Click here for March, 2010 deadline dates.

Click here for payroll tax rates.

The Bookkeeper's Note - When an employee is paid (not earned) determines the payroll remittance due date.


CRA determines your remitter type by calculating your average monthly withholding amount (AMWA). They add up all source deductions sent over the past two years divided by the numbers of payment periods over one year.

AMWAAssigned Reporting PeriodForm PD7A Filing DeadlinePayment Deadline
L.T. $3,000* Quarterly 15th of April, July, October, JanuarySame as filing deadline
L.T. $15,000 Monthly 15th day of following monthSame as filing deadline
$15,000 to $50,000Semi-Monthly25th day of same month and 10th day of following monthSame as filing deadline
G.T. $50,000WeeklyDue 3rd work day after the period**Same as filing deadline

image of three accounting beans*Must have perfect payroll tax compliance history over a twelve month period to qualify. If not, you must remit monthly. If you qualify, CRA will notify you.

Payroll
Sidebar Chats

What is PIER?

How to Proof CPP & EI

CPP and EI exclusions

How to Pay Employees with Cash

Self Employed Independent Contractor vs Employee

**Remittances must be done through a Canadian financial institution one full day prior to the due date to avoid penalty charges.


Source deductions are reported on a quarterly, monthly, semi-monthly or weekly basis on form PD7A. Your reporting period is assigned by CRA based on your remitter type (discussed above). Revenue Canada mails the form ahead of your deadline enabling you to meet your tax compliance deadline.

You have two options for filing online:

  1. using My Payment
  2. through your financial institution. It may require payment of an initial administration fee to get setup.

For small businesses, monthly filers are the most common reporting period with quarterly filers being the other common period.




Payroll Checklists - Hiring and Terminating Employees


Ceridian has a number of payroll checklists that you should consider adapting for your own use to ensure you meet all your tax compliance obligations as an employer. They have lists for:

  • hiring new employees and requesting their social insurance number (SIN); and
  • terminating an employee and/or preparing the Record of Employment (ROE).

Their website also has an excellent small business payroll year-end guide in their resource section. While the lists are for Ceridian clients, you should be able to modify them for your purposes.

Sometimes, they move the pages around on their website. If by some chance the above link is not working, go to www.ceridian.ca and locate their resources and tools section. Hunt around in that area and you will find it.




Sidebar - How the CPP System Works


CPP (Canada Pension Plan) is one of the tax compliance items that must be deducted from an employee's pay cheque.

CPP is in effect across all provinces and territories however Quebec has its own program QPP. Everyone between the ages of 18 and 70 who are employed must contribute to the plan with 50% of the contributions paid by the employer. It is a mandatory employment deduction. Self-employed business owners pay both the employer and employee portion.

So do you ever wonder how you will receive your CPP benefits?

While CPP is a contributory plan based on your employment earnings, the CPP system is not a self funding plan. This means your contributions do not go towards funding your own pension ... they go to funding today's pensioners.

There are three types of CPP benefits - disability, survivor, and retirement. I'm going to chat about the retirement benefits.

The pension is designed to replace about 25% of your average earnings over the years. It does not start automatically. You must apply to receive to begin receiving your retirement benefits.

I was reading Advice Hotline, a free e-publication by MPL Communications Inc. They had a short write-up this month (July 2009) on how our current CPP system works ...

... I thought I'd share the simplified overview with you because I find I do better work when I understand the background to a subject ... especially tax compliance items.

To receive a full pension from the CPP you have to have paid into it for 40 years. The earliest you can begin contributing is age 18. This means it is possible that you would be eligible for a full pension at age 58.

If you retire before you reach the full 40 years, your pension is prorated based on the number of years you paid in ... so if you contributed for 37 years, your pension would be prorated to 37/40 = 92.5% of the full benefits.

There is a catch though ... isn't there always. To be eligible for a pension, you have to have contributed for a minimum of 20 years. (The Pension Puzzle - see below - says that you qualify for a pension if you've made just one contribution ... but your pension would be very small.)

The CPP system is setup to assume you retire at the age of 65. If you elect to retire earlier (between 60 and 64), your pension is reduced 1/2 of 1% per month. So if you chose to retire at age 60, your pension benefits would be reduced by 30% permanently.

The reverse is also true. If you wait until 70 to receive your pension benefits, your benefits would be increased by 30% for the remainder of your life.

You can read about proposed changes to CPP here.

If you are interested in reading more about how pensions work in Canada, Bruce Cohen and Brian Fitzgerald's book entitled "The Pension Puzzle, Your Complete Guide to Government Benefits, RRSPs and Employer Plans" is an excellent read. It was last published in 2007 so although some of the information has changed, it is still a valuable guide.

If nothing else, the book explains and assures you that the changes made to the CPP system in 1998 ensures you will have CPP benefits when you retire ... this perhaps takes away a bit of the sting of meeting the tax compliance obligations a small business owner faces.

You get information about your CPP benefits from HRSDC. Two links that might be of interest ... You can estimate your CPP retirement benefits with the HRSDC Retirement Income Calculator ... and you can request a copy of your CPP Statement of Contributions.

You do not have to have a My Service Canada account to access the above information. If you have a My Service Canada account, you can view your CPP benefit information directly online.

I hope this bit of background on CPP makes it easier for you to understand and meet your tax compliance deadlines.




Payroll - T4 and T4A Information Returns

 --- T4 Deadline -- T4 Due Date ---
        Monday, March 1, 2010


image two accounting beansimage of T4 slip

It is important to remember that for tax compliance purposes, income is reported in the year it was paid not when the income was earned. Do not confuse this with GAAP / GPE reporting where you accrue unpaid but earned wage income in the year the wage was earned.


The easiest way to file your T4 Summary and slips is online. Prior to the end of each calendar year, CRA sends you a letter with your online access code. Beginning January 11, 2010, you can submit online by going to the CRA website and selecting T4/T5 by Internet.

If you still want to file by paper (only if you have less than 50 slips), go to the Businesses tab on the CRA website and select Payroll>Completing and filling information returns. Under each section, you will find fillable forms.




image of three accounting beans

Pssst ...... Small Business Owners


New and Improved Electronic Filing Option at CRA

Tax compliance just got easier with electronic filing access for small business owners. CRA now has the ability to accept electronic returns for under 500 slips. It is fast and easy to use. They have a videocast to watch if it is your first time using this service.

1-3 slips uses their free software T4 Web forms.

1-70 slips uses their free software T4 Desktop application



New tax compliance requirement - Mandatory E-filing starts January, 2010 for anyone who submits more than 50 slips.




T4 & T4A DEADLINES FOR SPECIAL SITUATIONS

Death of Owner

The payroll information return(s) must be filed within 90 days of the death if the owner of the business dies. (Don't forget that you will have to close all CRA accounts after all final returns have been processed and paid.)

Bankruptcy

The payroll information return(s) must be filed within 30 days from the date the business ceases to operate. (Note: Payroll source deductions must be remitted within 7 days from the date the business ceases.)

50 plus slips

Payroll return must be filed electronically in XML. Paper filing in not an option. (Prior to January 1, 2010, only those with 500 plus slips had to file electronically.)

image of one accounting bean

T4 Late Filing --- Failure to File T4

:-( Penalty Charges :-(

This strategy definitely takes money out of your pocket and does not help you achieve your goal of putting more money in your pocket.

If you can't meet your tax compliance filing deadlines, you absolutely need to consider hiring a bookkeeper to do your payroll.

Not being tax compliant is expensive!

$25 a day ... OUCH!

- $100 minimum penalty - $2500 maximum penalty -





Workers' Compensation Board of BC (WCB)

Click here for March, 2010 deadline dates.

Reporting PeriodAnnual PremiumFiling DeadlinePayment DeadlineAnnual Report Deadline
Quarterly$1,500 plusApril 20, July 20, October 20, January 20Same as filing deadlineFebruary 28 for prior year
Annualless than $1,500March 5th for prior year Same as filing deadlineMarch 5th for prior year

You will receive Form 1820 - Employer's Remittance Form each quarter if you are a quarterly filer.

Towards the end of each year, WCB will send out a letter informing you of your base rate and classification unit for the coming year. This is not a bill so do not make a payment.

Each year, quarterly filers will also receive an Employer Payroll and Contract Labour Report (form 1810). The purpose of the annual report is to reconcile your account for the previous year. It is due February 28 each year.

WCB form 1810 non-filing tax compliance penalties

  • $50 for a tier 1 - less than $6,000 annual assessment
  • $150 for a tier 2 - $6,000 to $20,000 annual assessment
  • $500 for a tier 3 - $20,000 to 200,000 annual assessment
  • $1,000 for a tier 4 - $200,000 plus annual assessment

WCB Payment Options

  • online at WorkSafeBC.com
  • phone 1-888-922-2768
  • financial institutions - bring bottom portion of form 1810 or 1820
  • any WorkSafeBC office - cheques only, cash payments not accepted
  • mail - cheques only

Employers' Advisors - www.labour.gov.bc.ca/eao

The experts at Employers' Advisors work independent of WorkSafeBC under section 94(3) of Worker's Compensation (WC) Act. They can help you manage your compensation costs to give your business a competitive advantage.

There is no charge to use their services because the cost of their offices are included in assessments.

They provide assistance, education, advice and representation to employers on WorkSafeBC issues.

Compliance with the WC Act is mandatory. While ignorance of the law is not a defense, due diligence is. This requires everything to be in writing ... otherwise your due diligence does not exist.

Two forms you want to ensure are complete are Due Diligence Checklist and New Worker / Young Worker Orientation Checklist. Both can be found on the worksafebc.com website.

If your tax compliance rates include a surcharge, you need to do something to reduce it back to the industry average.

The surcharge you pay is based on your claims rate ... which can be 100% higher than the industry average. It is a weighted average over a three year period. Call an employer advisor to provide advice on how to lower your premiums.

An excellent reference is Small Business Primer A Guide to the WCB.




Business Income Tax Returns

Click here for 2009 Tax Year self-employed deadline dates.

Ownership TypeReturn TypeFiling DeadlinePayment DeadlineSpouse's ReturnInstallments
Sole Proprietor - see notesT1 (T2125)June 15th each yearApril 30th each year*1same deadlines as your business returns15th of March, June, Sep, Dec*2
Corporation - see notesT26 months after year-end**1balance due 2 months after year-end (CCPC -3 months) **2not applicablelast day of month (CCPC-last day of quarter)**3

image of three accounting beans

Tax Compliance Notes for Self-Employed

*1 Here's a tip - To avoid interest charges, pay your taxes owing by the Balance Due Date of April 30th, even if you are filing later. Don't know how much tax is owing - your bookkeeper will be happy to ESTIMATE the amount for you to pay.

*2 Your required installments are determined each year when you file your return. There are several options. You may not be required to make any installments. Talk to your bookkeeper or tax preparer.

image of one accounting bean

Tax Compliance Notes for Corporations

**1 Watch out -A return must be filed even if taxes owing are ZERO OR your company is inactive.

**2 Small Canadian-controlled private corporations (CCPC) must meet conditions for 3 months due date. If the CCPC earns investment income, payment deadline is 2 months after year-end.

**3 There are three installment options to choose from. Choose the one that lets you pay the least amount in installments. CCPC may be eligible for quarterly installments if criteria are met.

Find more Bookkeeper's Notes on CCPCs on The Rates page.


CCPC Sidebar Chats
Owner / Manager Remuneration


Shareholder / Employee Loans

Spousal Loans

Management Fees and Salaries



image of script writing saying,


The Canadian Tax - Links

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