CRA Self-Employment Tax Instalments

by Bookkeeping Essentials
(Prince George, BC, Canada)

CRA's revised publication P110 Paying Your Income Tax by Instalments walks you through your different instalment calculation options, remittance requirements ... and has a tax instalment calculation worksheet which includes CPP and voluntary EI payments.

It also explains how you can reduce your instalment(s) and the interest and penalties charged for non-payment / late payment.

Your instalments can be paid using Form T1162A-1 or online using My Payment.

The Knowledge Bureau Enews (November 24, 2010) recommends speaking with your tax advisor to avoid overpayment of your instalments.

Have your tax advisor complete the Estimation of Income and maximize your RRSP contribution room as a possible way to reduce or avoid your December 15 instalment.

You can find the publication at www.cra-arc.gc.ca> Forms and Publications> Publications listed by publication> P> P110 Paying Your Income Tax by Instalments.