If you pay yourself dividends from your corporation, a T5 slip is how CRA finds out. It's the dividend equivalent of a T4 — the corporation issues it, you receive it, and the n
...The Bookkeep Blog
An employee costs more than their wage. On top of wages, an employer in Canada pays its own share of Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums, usually workers' co...
In most cases, yes. Every province and territory in Canada has a workers' compensation board, and most employers who hire workers have to register with the board where those workers work. In BC it's W...
A Record of Employment, or ROE, is the form that tells the government why an employee's paycheques stopped and what they earned before that. You issue one when an employee has an interruption of earni...
Yes. If you pay someone as an employee, you generally need a payroll account with the CRA. It's best to register before their first paycheque so everything is ready when payroll starts. The account is...
In many cases a clear photo or scan is accepted in place of the paper. But a photo is a picture, and a record is a picture you can find, read and produce six years from now. A blurry photo may not be ...
In most cases, yes. CRA cares whether the expense was for the business and whether you can prove it, not which card paid for it. What changes is the bookkeeping, because the books have to show that yo...
Sometimes, yes. Lost receipts happen to careful people, and a missing one isn't automatically a tax problem. It does put the job of proving the expense on you, and the GST/HST credit is usually harder...
CRA's rule is six years, but the six years don't start when you buy something or when you file your return. They start at the end of the tax year the record belongs to. That's where most people miscou...
A CRA reclassification isn't a formality. If CRA determines that someone treated as self-employed was really an employee for a period under review, the business can become responsible for payroll o...
Every January, the same question shows up: does this person get a T4 or a T4A? It looks like an administrative detail, but when you're dealing with someone who performed services for your business,...
Calling someone a "contractor" in a written agreement doesn't make them one. CRA looks at how the working relationship functions, not just what the paperwork says — and getting it wrong can leave the ...