Incorporated? – T4/T5 deadline looms – Are you ready?

If you have an incorporated business and pay yourself, family members or other employees a wage or dividends from your company then your company is required to file a Tslip information return to the CRA by no later than February 28th each year to report these payments.  Slips must also be issued to recipients by this date or are also subject to penalty.  Penalties can be significant for failure to do so.A late filed report will incur a penalty that is the greater of $100 or $10/day to a maximum of $1000 for up to 50 slips that are reported late.  Greater numbers of slips will incur higher penalties.  That can add up pretty fast, so don’t be late.

If you have paid yourself a salary (T4), or dividends (T5), or certain other payments (T4A) out of your company during the calendar year reports must be filed and slips issued.

For salary or wage payments it is also necessary to calculate the amount of withholdings deducted and remitted to CRA during the year to ensure that funds are not owed for deficient remittances.

If you are newly incorporated and haven’t dealt with this type of reporting before be sure you have taken the necessary steps by the end of the month and by February 28th of any year that such payments are made out of your company.

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Disclaimer

Information contained within this blog or on this website, either expressly or by reference, does not constitute professional advice and is designed strictly for general information purposes. As individual circumstances vary widely anyone seeking assistance with either their accounting or tax situation are strongly encouraged to seek appropriate professional advice.

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