Incorporated business owners can choose between business salary or dividends
Understanding your investment tax slips - T3, T5, T5008
Eligible vs other than eligible dividends vs foreign dividends
Business owners need to plan a retirement exit strategy early - RRSP, TFSA, IPP, Diversifying Portfolio, Estate Planning
Tax Rates on Different Kinds of Taxable Income - Not All Income Is Taxed The Same
A Retirement Planning Option To Consider Now

FAQ about investment income and retirement pensions

Steps to declare and pay a Canadian dividend
Please explain what happens if a CCPC has income over $500,000. Does this affect the type of dividend a small business owner can pay themself?
What is GRIP and how do you get a GRIP balance in your CCPC?
What is the Dividend Tax Credit and what is its purpose?
Foreign dividends receive different tax treatment than Canadian dividends. How are foreign dividends taxed in Canada?
Please explain how capital gains (and losses) receive favourable tax treatment in Canada.
Can you please explain how IPPs work?
Would a small business owner be able to attract better personnel if the company had a retirement plan in place for employees?

P1T3.3T4.6 RRSP Tips and Traps for Small Business Owners in Canada

When RRSPs are a Good Choice
RRSP Tips
Potential RRSP Traps to Avoid
Example Scenario 1
How RRSP Contribution Limits Work
Example Scenario 2
Penalties for Over-Contribution
Example Scenario 3
Maximum Age
The Importance of Retirement Savings for Small Business Owners
The Value of Compounding
Example Scenario 4
Example Scenario 5
Cushioning Setbacks by Starting Early
Final Thoughts

Question 6

P1T3.4 Building Financial Resilience

Accepted Answer

Under each linked page title, you'll find a listing of what's in the article.

P1T3.4 Building Financial Resilience for CanadianSolopreneurs

How To Use This Series
Start Here
Weekly Stability Check
Pillar A Fundamentals
Pillar B: Workflow
Pillar C: Resilience
Terms Used

P1T3.4T4.1 Financial Resilience Fundamentals 101

Why Fundamentals Matter
6 Fundamentals
5 Rules
1 Must Know Number
4 Mistakes
Starting Point
Terms Used

P1T3.4T4.2 Fundamentals Friday: Take Back Control with a Weekly Money Check

The Three Hats
The Mindset Shift
Your Weekly 8 Numbers
Your CEO Monthly Pulse Dashboard
Building The Habit
The Payoff
FAQ
Terms Used

P1T3.4T4.3 Solo CRA-Ready Workflow: Gather, Process, Results

2 Ways In
3 Step Cycle
Step 1: Gather
Step 2: Process
Step 3: Results Delivered
Monthly Or Quarterly Close
Your Cycle At A Glance
What One Complete Cycle Produces
Complete Workflow Map
Solo CEO Move
Acronyms Used

P1T3.4T4.4 A CRA-Grade Records System for the Digital Solopreneur

A. The Foundation
B. Building Your Archive
C. Running Your System
Acronyms Used

Question 7

Pillar 2: Meeting Obligations
What are my tax filing and compliance obligations as a self-employed Canadian?

Accepted Answer

Under each linked page title, you'll find a listing of what's in the article.

T2.1 Small Business Tax Obligations in Canada (Command Centre)

Choose Your Path
What Catches Solopreneurs Off Guard
How Do You Start Your Day?
Quick Access (Most-Used Links)
Deadline Summary At A Glance
Prescribed CRA Rates and Limits (Quick Links)
Registrations And Thresholds (Quick Summary)
Which Obligations Apply To Me? (60-second chooser)
Learning The Rules ('Library' Index - Self-Employed, Payroll and Employees, Incorporated)
Appendix: Compliance Obligations YOU Should Know
At A Glance - Complex Compliance Deadlines
Tax Obligations With Moving Timelines You Should Know
Current General Season Deadlines
US Deadlines That Affect Canadians
Benefits and Interest Date Reminders
CRA Reviews and Tax Audits
Next Step

Question 8

P2T3.1 Tax Compliance in Canada | Learn Your Tax Filing Deadlines

Accepted Answer

Under each linked page title, you'll find a listing of what's in the article.

P2T3.1 Tax Compliance in Canada | Learn Your Tax Filing Deadlines

What's On This Page
Introduction
What Is Tax Compliance?
Sidebar: Quack Facts Your Banker Will Know (ASPE Disclosures)
Find Your Deadline Fast
Sidebar: At A Glance: Your Key Compliance Dates
Developing The Habits That Make Compliance Effortless
Start Here: Five Habits That Build Momentum
Next Steps
What Applies To You? (Cross-References By Obligation)
Income Tax Deadlines - The Details
Part A. Overview
Part B. T1 Sole Proprietors and Self-Employed Individuals
B1. Self-Employed T1 Deadlines and Notes
B2. Self-Employed Quarterly Tax Installments
B3. Indexation Adjustments Of Personal Tax Rates
B4. Tax Brackets
Part C. T2 Incorporated Businesses
C1. Corporation T2 Deadlines and Notes
C2. Director's Liability
FAQ About Tax Compliance in Canada

P2T3.2 GST HST Filing Deadlines

Takeaway
Highlights Of This Post
GST HST Tax Filing Deadlines Form GST34-2E
Sidebar: Annual GST/HST Filing Deadline
Find Your Deadline Fast
Funds Collected In Trust - Don't Fall Down This Rabbit Hole
GST HST Return Filing Options - Online vs Paper
Four Ways To Pay Your GST HST Owing
Sidebar: Annual Filers: Improve Your Cashflow
FAQ about GST HST

P2T3.3 Payroll Tax Filing Deadlines For Canadian Small Business

Which Worker Relationship Status Do You Want?
Highlights Of This Post
Find Your Deadline Fast
Sidebar: Employee Statement of Earnings
Payroll Tax Filing Deadlines - Form PD7A
Sidebar: T4 Preparation Tip
Sidebar: What is the Deadline for T4 Slips To Be Issued? Can I Provide Electronic Copies Instead of Paper Copies?

P2T3.4 T4A Information Slips (Applies To Contract For Service Relationships | Independent Contractor Status)

Which Worker Relationship Status Do You Want?
What's New
Introduction
CRA Classification Rules
Tax Reporting T4A Information Slips and Deadlines
Subcontracting Self-Employment Taxes & Workers' Compensation in Canada
From the Viewpoint of the Business Owner
From the Viewpoint of the Contractor
Sidebar: BEFORE You Hire A Subcontractor ...
Canadian T4A Subcontracting Reporting Requirements
FAQ About Hiring Independent Contractors

Question 9

P2T3.2 Compliance Filing Basics For Self-Employed Canadians

Accepted Answer

Under each linked page title, you'll find a listing of what's in the article.

P2T3.2 Compliance Filing Basics For Self-Employed Canadians: Start Here When CRA Filing Feels Overwhelming

Where Are You Right Now? Choose Your Path
You Didn't Start Your Business To Become A Tax Expert, But Here's The Reality
Small Business Compliance Responsibilities
Compliance Foundation
Before You File Anything, Get These In Order
Common Filing Situations
Build the Habit
When It Snowballs

P2T3.2T4.1 It's Easier to File and Pay Online Than Ever Before

What You Will Learn In This Mini-Guide
FAQ
Doing Your Paperwork After Everyone Has Gone To Bed?
How CRA's Online Services Have Evolved
Sidebar: Be Tax Compliant This Year
What Can The CRA Portal Do?
How Do You File Using The CRA Online Portal?
How Do You Pay Online Using CRA My Payment?
What About Using Your Bank's Bill Payment System?
Key Takeaways

P2T3.2T4.2 What To Do When You Can't Pay Your Taxes

Introduction
Step One: File On Time, No Matter What
Step Two: Pay What You Can, Even If It Is Not Everything
Step Three: Set Up A Payment Arrangement With CRA
Funds Held In Trust
Are You Behind On Prior Years?
Special Circumstances: Life Happens
Do You Owe More Than $3,000? Installments
How Do You Make Sure This Doesn't Happen Again?
Not Sure What Applies To Your Situation? (Choose where to go next)
Make Compliance Part Of Who You Are

P2T3.2T4.3 Why You Should Amend Your Tax Return Before CRA Finds the Error

Amend Your Return
What Actually Happens If You Do Nothing
Why Filing An Amendment Changes Everything
A Word About Late and Missing T-Slips
If You Are Self-Employed, Pay Extra Attention Here
1. The T4A Box 48 Situation
2. Platform Economy Income Is On CRA's Radar
Sidebar: A Note On Self-Employment Taxes
Sidebar: A Straight Talk Moment About Moonlighting and Skimming
How to File An Amendment
What If You Owe Money You Cannot Pay Right Now
Your Quick Action Checklist

P2T3.2T4.4 Canadian Guidance: Business Record Retention: PIPEDA Business SWOT Analysis & Data Storage Considerations

Introduction: CRA and PIPEDA Serve Different Purposes
Who Must Keep Business Records in Canada
What Business Records Must Be Kept In A Canadian Business
How Must Business Records Be Kept in Canada
Sidebar: Cloud Accounting - Location of Servers
How Long To Keep Business Records in Canada
Early Destruction of Business Records
PIPDEA Guidelines For Business Record Retention
PIPEDA Business SWOT Analysis
CRA Audits and Computerized Books and Records Access
Wrap Up Business Record Retention
Takeaways

P2T3.2T4.5 Can CRA Forms be Electronically Signed?

What is an electronic signature
Can CRA forms be electronically signed?
What procedures do you need to follow when applying e-signatures to tax forms?
What forms does the CRA accept e-signatures on?
Data storage considerations when selecting third party service providers
CRA data residency requirements
Common SaaS platform data storage locations

Legislation governing Canada's electronic signatures

The European Union's eIDAS (Electronic Identification Authentication And Trust Services)
Differences between Canada and the EU's legislation
PIPEDA (Personal Information Protection and Electronic Documents Act)
UECA (Uniform Electronic Commerce Act)
Identity Assurance Levels (IALs) for digital identities

Question 10

Pillar 3: Categorizing Expenses
What business expenses can I deduct and how do I categorize them?

Accepted Answer

Under each linked page title, you'll find a listing of what's in the article.

P3T2.1 Introduction: Choose Your Starting Path

Introduction With Orientation Map
Start here: which situation are you in?
Guardrails (safety first!)
Step 1 (Checklist): Stay Inside CRA's Rules
Step 2 (Checklist): Review Common T2125 Topics
What’s new for the tax filing season?
The part that makes next year easier: One Bookkeeping Habit At A Time

P3T3.1 Year-End Tax Rescue Guide

This system is for self-employed "shoe-box" workers who only do their books at year-end for tax preparation.

How To Get Started
Old School Solution
Low-Tech Option
Affordable Tech Option
Thinking ahead to make year-end and tax preparation easier

P3T3.2 The Tax Primer: Self Employed Tax Deductions

Formula For How Sole Proprietors Are Taxed In Canada
Allowable Self Employed Tax Deductions
General Rules For Deductibility
Reasonable Expectation of Profit
Vehicle Expenses Line 9281
Advertising Line 8521
Meals & Entertainment Line 8523
Bad Debts Line 8590 & Reserve For Doubtful Accounts Line 9270
Insurance Line 8690
Interest & Bank Charges Line 8710
Business Taxes, Licences, Memberships Line 8760
Office Expenses Line 8810 & Business Supplies Lines 8811
Professional Fees Line 8860
Management & Administration Fees Line 8871
Place of Business Expenses Lines 8910, 8960, 9180, 9220
Wages, Salaries and Subcontractor Payments Lines 9060, 8340, 8360
Travel Expenses Line 9200
Other Expenses Line 9270

P3T3.2T4.1 13 Non-Deductible Business Expenses

Personal Expenses
Double Dipping Of GST HST Input Tax Credits
Draws Paid To Yourself
Donations To Charities Do Not Qualify
CRA Interest And Penalties
Other Fines And Penalties
Life Insurance Premiums
Appraisal Fees
Transactions Made To Avoid Tax
Club Memberships And Dues
Your Own Labour
Meals Eaten During An Ordinary Business Day Where No Business Meeting Was Conducted
Advertising With Foreign Broadcasters

P3T3.2T4.2 8 Common Tax Mistakes

Prepaid Expenses
Capital Expenditures
Lease Payments
Meals and Entertainment
Legal Fees Incurred to Buy a Capital Property
Use of Your Home Telephone for Business
Inventory
Advertising In Periodicals

Sidebars:

What are Prepaid Expenses?
Should it be Depreciated or Amortized? Hmmm
Get Into This Compliance Habit When Dining

P3T3.2T4.3 How To Write-off Self-Employed Business Expenses For Your Car

Introduction
Writing-off business vehicle expenses for the self-employed
Do you really need business insurance for your personal car?
Tax deductions when you purchase your vehicle
Tax deductions when you lease your vehicle

P3T3.2T4.4 Do I Meet the Criteria to Claim Home Office Expenses?

→ 🦆 Who qualifies for the home office expense tax deduction?

Do you qualify to deduct your home office expenses?
When is a meeting not a meeting in CRA's eyes?
Is it the principal place of business?
Is your home space used (a) exclusively to earn business income; AND (b) on a regular and continuous basis for meeting clients, customers or patients?
Are there any restrictions or limitations on the claiming home office expense deduction?

→ 🦆 Capital expenditures

Home office computers and cell phones
Should you claim capital cost allowance on your principal residence?
Change in the use of principal residence

→ 🦆 How to prorate your home office expense deduction

Option 1 - Shared home office space for your business
Option 2 - Exclusive use area for your home office

→ 🦆 Things to consider - what to INCLUDE ... what to EXCLUDE

Property taxes
Mortgage interest
Home maintenance expenses
Insurance - personal vs. business
Claiming ITCs on home office expenses

P3T3.2T4.5 Meals and Entertainment Expense Deduction

What Is Deductible?
50% Deductible Category
Sidebar: Tips on Meals and GST
When Are Meals And Entertainment 100% Deductible?
Can I Deduct Meals Eaten While Working?
Beyond the Spreadsheet ... Calf Pumps: Your Secret Weapon

P3T3.2T4.6 Cell Phones and CRA

What Is CRA's Position On Cell Phones And Internet Service?
Employee internet and cell phone service required to perform work duties
Sole proprietor internet and cell phone service required to earn income
How to calculate the taxable benefit value of employee's personal use portion of internet and cell phone

P3T3.2T4.7 How to Deduct Web Related Outlays

What CRA Says About Website Related Outlays
Website Related Outlays -- From An Accounting Perspective --
Domain Name And Registration -- Current Expense Website Related Outlays --
Website Hosting Services -- Current Expense Website Related Outlays --
Website Design Services -- May Be Current Expense Website Related Outlays --
Web Related Outlays Wrap Up

P3T3.2T4.8 What is Capital Cost Allowance (CCA)?

CCA defined
What is the difference between CCA vs Amortization?
Tax timing differences
CCA rules and rates
What is depletion?
T5013 Statement of Partnership Income and CCA
Key differences between IFRS vs ASPE handling of CCA
Why is depreciation referred to as amortization in ASPE?
Why amortization is a non-cash expense?

TO COME ...

How to Claim Your Input Tax Credits on Your Vehicle

Question 11

Pillar 4: Protecting For Audits
How do I protect my business from a CRA audit?

Accepted Answer

Under each linked page title, you'll find a listing of what's in the article.

P4T2.1 CRA Audit-Ready Books For The Self-Employed: Protecting Yourself In A CRA Review Or Audit

Introduction Including Orientation Map
Where Are You Right Now?
AI in 2026: The Quiet Shift Changing CRA Reviews
Path A: I Want Audit-Ready Books
Sidebar: What 'Audit-Ready Books' Means
CRA Audit-Ready Books 10-Point Checklist
Areas CRA Audits Regularly
Are You Using The Correct CRA Rates?
Do You Meet CRA's Record Retention and Data Storage Requirements?
If You Only Build 3 Audit-Proof Habits This Month … Start Here
Path B: I Received a CRA Letter
Path C: I Want To Understand The Audit Process
Understand The CRA Process And Your Options
If You're Ready To Act Now
Path D: I Prefer To Browse By Topic
New to CRA language? Terms Used

P4T3.1 Understanding Tax Audits in Canada

1. Introduction
Start Here If ...
What's New This Year
2. Tax Review Process
CRA Review vs. CRA Audit: Not the Same Thing
The Pre-Assessment Review
The Notice of Assessment (NOA)
Sidebar: Don't Skip This Step
The Processing Review
Sidebar: If you receive a processing review letter
The Matching Program
Recap: Tax Review Process
3. Tax Audit Process
How Returns are Selected For A Tax Audit in Canada
Sidebar: Useful Mindset Shift
What Happens During A Tax Audit In Canada?
Sidebar: Then and Now
Sidebar: Best Approach
The Notice of Reassessment (NOR)
Recap: Tax Audit Process
4. Key Takeaway
New to CRA language? Terms Used

P4T3.1T4.1 Small Business Insights Into The Canadian Taxpayer Bill of Rights

Introduction
Inception
Impact on Small Business
5 Commitments
CRA Assistance
16 Rights
Income Tax Act
Taxpayer Protection
Tax Relief Program
Excise Tax Act
CRA Ombudsman
Conclusion

P4T3.2 Responding To A Tax Audit Notice

7 Steps to Follow
Sidebar: How To Ease The Pain of a CRA Audit
Difference Between an Audit and an Investigation
How To File A Notice Of Objection
Tips If You Disagree With a Tax Assessment
Wrap-Up of How To File A Notice of Objection
6 Common Misconceptions About Tax Audits
Sidebar: Requirement of Law
Audit Ready 'Preventative' Bookkeeping
Wrap-Up

P4T3.2T4.1 How To Make A CRA Payroll Payment Under Protest

Introduction
Step 1 Understand Why You Have To Pay The Whole Amount
Step 2 Pay The Full Amount 'Under Protest'
Step 3 Pay In Full (Or Schedule A Series Of Payments)
Step 4 File Your Formal Dispute Immediately
FAQ
Step 5 Consider Taxpayer Relief (Optional)
Step 6 Wait For Assignment To An Appeals Officer

P4T3.3 What is a CRA Audit Trail? Why Do You Want One?

What is an Audit Trail and Why You Want One?
The Cash Myth
6 Ways to Create a CRA Audit Trail
Separate business from personal expenses
Keep all your receipts for audit ready books
Downloading bank and credit card transactions --- avoid this shortcut
Have sequential invoices and cheques
Track all your cash
Record all sales --- including cash and barter sales

Sidebars:

Sole Proprietor Bank Accounts
Audit Proofing Your Books
Don't Mix Personal And Business Expenses On The Same Receipt
What Is The Correct Way To Void A Cheque?
How To Record Cash Not Deposited To The Bank In QuickBooks®

P4T3.2T4.1 CRA Mileage Logbook Requirements (Applies also to all)

Overview CRA Mileage Logbook Requirements
CRA Mileage Log Requirements Using DETAILED Logbook Method
Driving To and From Work
What Are The Conditions That Must Be Met To Use A Simplified Logbook Period?
CRA Mileage Log Requirements Using SIMPLIFIED Logbook Method
CRA Mileage Log Requirements -- Alternative Records
Why Would Someone Want To Use A Simplified Logbook Rather Than A Detailed Logbook?
What Is Better From A Canada Revenue Agency Perceptive -- A Detailed Logbook Or A Simplified Logbook?

P4T3.2T4.2 Compliance Around Company Owned Vehicles

Company owned vehicles
Operating costs vs capital costs
Employee taxable benefit rates per kilometre
Operating cost benefit and standby charge notes
Operating cost benefit reduction
People employed to sell or lease vehicles
CRA's corporate car expenses audit project
Sidebar: Company assets vs. personal assets
Beware: shareholder conferred benefit and the company car (when a shareholder is not an employee)

P4T3.4 Canadian Prescribed Interest Rates

Spousal Loans Annual Deadline
Bank of Canada Interest Rate Announcement Schedule
Quarterly Prescribed Interest Rates
Corporate Taxpayer Pertinent Loans Or Indebtedness Rates
Loans to Shareholders - Employee Loans
Caution - Talk To Your Accountant
Spousal Loans (January 30 is an important date)
Knowledge Tip

P4T3.5 CRA and The Underground Economy - The Cash Myth

What is the underground economy (UE) and why you should care?
What kind of audits does CRA perform to find unreported cash?
UE analysis of not reporting income
AUDIT READY Simple audit proofing method
Difference between tax evasion, tax avoidance, and effective tax planning
FAQs
What to do when a customer wants to do cash under the table
What to do when a supplier wants to do cash under the table
What to do when an employee wants to be paid in cash
Minimize taxes legally - TFSA contributions and limits
Defer taxes legally - RRSP contributions and limits

P4T3.6 When is Voluntary Disclosure the Right Move?

Introduction
What is VDP?
When is voluntary disclosure the right move?
Recent changes
How to apply
Ineligibility
Third party civil penalties
Non-compliance penalties assessments
Is voluntary disclosure the right move?
Tax accountant vs tax lawyer
Key takeaways

Question 12

Pillar 5: Triggering Events
What do I need to do when a one-time business event changes my tax obligations?

Accepted Answer

This pillar is for one-off triggering events in your business such as:

Hitting the mandatory GST/HST registration threshold
How to register for British Columbia's PST

Then there are what I call relationship events:

Hiring your first employee
First time you terminate an employee
Hiring your first subcontractor
Deciding if it's wise to hire a Personal Services Business (incorporated employee)

And finally your business structure:

Deciding if and when incorporation is right for your business

You'll find article about these triggering events below.

Question 13

P5T2.1 Sales Tax

Accepted Answer

Under each linked page title, you'll find a listing of what's in the article.

P5T2.1 Canadian Sales Tax | PST GST HST in Canada

What Is GST HST? What Is VAT?
GST HST Special 90% Rule
Dig Deeper Into Other GST HST Items
Background: Why GST HST Was Introduced In Canada
How To Calculate GST/HST Included In A Purchase Amount
GST HST Is A Good Tax
How HST Is A Different Tax Than PST
FAQ

P5T2.1T3.2 How To Register For GST HST In Canada

Introduction
Why register
Steps to register
Wrap up
FAQ on small supplier voluntary registration

P5T2.1T3.3 An Examination of Canadian Sales Tax Rates: Exploring Reporting Options

How To Calculate The Provincial Part Of HST
Sales Tax Rates In Canadian Provinces And Territories
Three Accounting Methods Available For Reporting GST HST
How To File A GST HST Return In Canada Using the Regular Method
When Does It Become Mandatory To Register For GST HST?
GST HST Return Calculation Of Your Net Sales Tax Due
Master The Simplified Method Of Accounting For GST HST: A Brief Guide
Where To Find The Quick Method GST HST Rates

Tracing History Archived

Historical Sales Tax Rates: Regular & Simplified 1991 To Present
Historical Notes On Sales Tax Rates In Canada
July 1, 2010 Transition To HST - Rates Immediately Before and After The Transition

P5T2.1T3.4 CRA GST Invoicing Rules

What is a Legitimate Business Receipt For CRA Purposes?
Presenting Point of Sale Rebates on Customer Receipts
Make It a Habit To Do This
Exceptions to CRA GST Invoicing Requirements
No Receipt No Deduction Clearing Account
What is NOT a Legitimate Receipt for Tax Purposes
FAQ

P5T2.1T3.5 Place of Supply Rules

General Rule of Supply
Most Closely Connected With The Supply
Specific Place of Supply Rules
Out of Province Customers
Online Internet Sales | Virtual or Electronic Commerce
Place of Supply Rules for Internet Sales Purchased From Inside Canada
How Internet Sales From Outside Canada Affect GST/HST | Non-resident Sales Tax Rates
Can You Claim A GST ITC For US Purchases? | Place of Supply Rules for US Purchases
Place of Supply of Rules Checklist for Exporting Commercial Goods
Place of Supply Rules for Selling Remote Assistance Services to the US
What are the QST registration rules for businesses that do not have a physical presence in Quebec (non-residents)?
FAQ
Understanding Taxable, Zero-Rated, Exempt And Out-Of-Scope Supplies

P5T2.1T3.6 Understanding Input Tax Credits

Basics
What is an ITC?
Eligibility and Small Suppliers
Calculate and Claim ITCs
Common Mistakes To Avoid
Special Rules for Capital Property, Changes in Use of Property, and Public Service Bodies
Impact on Small Business

P5T2.1T3.7 Careful Before You Cancel Your GST HST Account

How To Cancel Your GST HST Account
Heads Up Financial Impact
Why Do You Want To Cancel Your GST HST Account?
Why GST HST Ia A Neutral Tax To Business
Are There Any Reasons Why A Small Business Would Not Want to Voluntarily Register For GST HST?
Where To Go For More Information
Yoga Stretch Break - Work Life Balance

P5T2.1T3.8 Tracing The History Of Canada's Transition To HST in 2010

This is an Archived Article and will not be updated. It contains government announcements surrounding provinces transition to HST in Canada

Canadian Sales Tax Guide Table of Contents
PEI 2013
BC 2013 - Back to PST
BC 2010
Ontario 2010
Both BC & Ontario 2010

P5T2.1T3.9 Basics of PST in BC

PST & WCB Deadlines
What's Taxable
Reals Property Contractors
Small Sellers
Software Purchases
Taxable and Related Services
Out of Province Purchases
Exemptions
Tracing History - 2012 HST Transitions Rules

P5T2.1T3.10 How To Register For PST In BC | A Guide For Small Business Owners

PST Article Series Table of Contents
Introduction
Daily Tax Planning
Steps to Register
Conclusion

P5T2.1T3.11 Provincial Sales Tax Rates In BC

Current Rates
Exemptions
Calculating PST
Invoicing Requirements
Applying for a Refund
Interprovincial Rate Comparison
Reporting & Remitting
Penalties
Imports & Exports
Online Sales
PST vs GST HST
Wrap-up

TO COME ...

After You Are Registered For GST HST
GST HST Bookkeeping and Reporting
GST HST Audits
GST HST and Online Sales

Question 14

P5T2.2 Payroll Tax

Accepted Answer

Under each linked page title, you'll find a listing of what's in the article.

P5T2.2T3.1 Canadian Payroll Manual

Quick Start Guide
Where To Start? (What To Do If You Are New To Payroll Administration)
What To Pay?
Different Ways to Pay People (Understanding Worker Relationships)
Payroll Cycle Basics
Annual Filing Process
Yearend Payroll Task List
Hiring and Managing Independent Contractors
A Special Category | The Incorporated Employee

P5T2.2T3.2 Hiring and Paying Your First Employee

Visual Roadmap
How to Hire Your First Employee | 7 Steps
Dig Deeper Into Other Payroll Issues

P5T2.2T3.3 How to Determine the Province of Employment - POE for Remote Workers

New CRA Admin Policy
POE Key Considerations
POE Factors
Audit Ready Documentation
Example 1 | Example 2

P5T2.2T3.4 T4 Slips and Annual Reporting

Please Read This BEFORE You Prepare Your T4 Slips
T4 Information Slips
T4 Deadline
Can I Send An Electronic T4 Slip To My Employees?
What Happens If I Don't File T4 Slips On Time ... Or At All?
Penalty Charges | Not Being Tax Compliant Is Expensive!
FAQ T4 Slip Boxes 24 And 26

P5T2.2T3.5 Budgeting For Payroll Tax Rates

What is a Payroll Tax?
What Is The True Cost of Your Employee?
Current Payroll Tax Rates
Employment Insurance Notes
EI For The Self-Employed
Background: Who Sets The EI Rates?
Current Payroll Tax Rates-2024 CPP Rates
Canada Pension Plan Notes
Is CPP Sustainable For Future Generations? Yes.
Background: Who Invests The CPP Contributions?
Who Is Excluded From Paying CPP And EI Premiums?

P5T2.2T3.6 How to Pay Employees with Cash

Protect Your Business
Step-By-Step Instructions
Why Audit Proof Your Cash Payments To Employees?
FAQ About Casual Employment
How does CRA define casual labour in Canada?
I hire casual labour. How do I deal with casual employees from a tax point of view?
Can you give me some examples of casual employment

P5T2.2T3.7 Canadian Employment and Labour Standards | Minimum Wage Rates

Federal vs. Provincial Jurisdiction
Common Employment and Labour Standards
Federal Minimum Wages in Canada
Employment and Labour Standards Summary in Canada
Best Practices for Employment and Labour Standards Compliance
Sources For Employment and Labour Standards
Source Minimum Wage Database
FAQ

P5T2.2T3.8 Why You Need An Employment Contract

Contract notice vs common notice vs statutory notice
Oral vs written employment contracts
Contents of a written employment contract
Consideration for signing a revised employment contract
Release of claims in exchange for severance
*NEW Recent court rulings on termination clauses

More >> See also 'Income Tax - Employee Taxable and Non-Taxable Benefits' below

Question 15

P5T2.2T3 Employee Taxable and Non-Taxable Benefits

Accepted Answer

Under each linked page title, you'll find a listing of what's in the article.

P5T2.2T3.9 Overview of Employee Taxable Benefits and Allowances

General Notes on Payroll Deductions
Employee Taxable Benefits Rules ... find an indispensable benefits chart
Rules for Gifts and Awards
Wage Loss Replacement Benefits ... explains policy change on CPP contributions
Wage Loss Replacement Plans and Benefits ... Disability Income Insurance
Online Automobile Benefits Calculator ... assists with standby charges
ASPE and Employee Bonus Programs
Employee Taxable Benefits Rule Revisions
Employee Taxable Benefits - Educational Amounts

P5T2.2T3.10 Is An Auto Allowance A Taxable Benefit?

Is an auto allowance a taxable benefit? It depends.
Employee Owned Vehicles --- How Should An Employer Reimburse An Employee For Business Use Of Their Personal Vehicle? 4 options
Option 1 - Employee Allowable Employment Expenses
Option 2 - Reimbursement Of Car Expenses Incurred
Option 3 - Flat Rate Auto Allowances Are Fully Taxable
Option 4 - An Allowance Based On Business Kilometres Driven
Employee Tax Free Auto Allowance Rate -- Prescribed Cents Per Kilometre
Who Cannot Use The Tax Free Auto Allowance Method? Sole Proprietors

More >> See also P3T3.2T4.6 Cell Phones and CRA

Question 16

P5T2.3 CRA Subcontracting Reporting Requirements

Accepted Answer

P5T2.3 CRA Subcontracting Reporting Requirements

Subcontractor Deadlines
Which Worker Relationship Status Do You Want?
What's New This Year
Sidebar: CRA Changes Position On Subcontractor Fees For Service Reimbursed To Nonresidents
Employee Or Self-Employed? | CRA Employment Status Determination
Do You Use A T5018 Slip Or T4A Slip? (From the viewpoint of the business owner and the viewpoint of the self-employed worker)
Can You Report Subcontract Amounts On Line 10400 - Other Employment Income?
Sidebar: Schedule 8 CPP Contributions On Self-Employment Or Other Earnings
How Do You Reflect A Payment To A Subcontractor (Non-Construction) For Services Provided On The Financial Statements?
Do You Need A Written Agreement?
FAQ

Question 17

P5T2.4 Should You Hire A Personal Services Business?

Accepted Answer

P5T2.4 Should You Hire A Personal Services Business?

Drivers Inc.
Highlight Of This Post
From the viewpoint of the business owner
From the viewpoint of the non-employee
CRA 2022 personal services business audit project
FAQ about personal services businesses

Question 18

P5T2.5 Canadian Controlled Private Corporations (CCPC)

Accepted Answer

Under each linked page title, you'll find a listing of what's in the article.

P5T2.5 Canadian Controlled Private Corporations: The Bookkeeper's Notes on CCPC

What is a Canadian controlled private corporation (CCPC)?
Is Incorporating Right For Your Business?
What is the Business Corporations Act?
Types of Tax Payable for Canadian Controlled Private Corporations
What is the SBD?
Tax Rates and Thresholds for Corporations (Small Business Deduction - SBD)
Small Business Rate Reduction Restrictions (includes taxable capital employed and taxable capital business limit reduction)
How the CCPC and SBD Rates are Calculated
Active Business Income - Schedule 7
Passive Investment Income Rules
Corporate WCB Owner Obligations and Services - Employers' Advisors Office
Selling or Redeeming CCPC Shares
What is the LCGE?
Inactive Corporations
FAQ

P5T2.5T3.1 Reviewing Common T2 Schedules

Order to Review
Part I Tax Payable Calculation (includes example)
T2Sch1
T2Sch2
T2Sch3
T2Sch4
T2Sch6
Difference Between ACL and ABIL
T2Sch7
Free Tax Textbook

P5T2.5T3.2 Maintaining The Corporate Minute Book - legal requirement

What Is A Corporate Minute Book?
What Should A Canadian Corporate Minute Book Contain?
Do You Really Need A Corporate Minute Book?
Do You Need A Lawyer To Maintain Your Minute Book?
What Are The Benefits Of A Minute Book?
What Are The Consequences Of Not Maintaining A Corporate Minute Book?

P5T2.5T3.3 When Should You Incorporate As A CCPC In Canada?

Should You Incorporate As A CCPC?
Advantages of Incorporating
Disadvantages of Incorporating
When Not to Incorporate
Additional Considerations
My Takeaways
My Conclusion
Tax on Split Income (TOSI) Rules
CCPC Image Index

Question 19

Pillar 6: Concierge Desk
Where do I find site tools and reference resources?

Accepted Answer

Under each linked page title, you'll find a listing of what's in the article.

P6T2.1 The Concierge Desk ... Because Some People Just Belong Here

Introduction Including Orientation Map
What Is The Concierge Desk?
Where Would You Like To Go? Lots of Options
Canadian Bookkeeping Tax Rates : Quick Access Links
Topical Reads Worth Knowing About
1. Canadian Home Based Business And Taxes: Lots of FAQ about home business taxes
2. CRA SimpleFile Service - begins March 9, 2026 with or without an invitation
3. Upcoming Change To The Capital Gains Inclusion Rates - It has been cancelled
4. Simplified Non-Business Travel Rates - Not for Business Use
Who can use non-business travel rates | Northern residents deduction | Moving expenses | Medical travel expenses | Who cannot use non-business travel rates | How to claim your personal travel expenses | Current meal and mileage rates
5. The Backgrounder Library
Brief Notes From The Concierge ... Bloglets: Short Notes and Updates

Question 20

P6T2.1 What's At The Concierge Desk

Accepted Answer

P6T3.1 What's New (The Blog Feed)
Here's where new and updated articles land

P6T3.2 Your Business Problem Finder
Each problem card points you to the next stop on the roadmap, not the end of the road. Some stops lead directly to a practical system or habit. Others lead to a chooser page or resource hub where you pick your next step from there.

P6T3.3 The Backgrounder Library
Sometimes you just want to understand why things work the way they do. This library is for that. Short backgrounders on Canadian tax, bookkeeping, and CRA concepts that give you the context behind the rules you are already trying to follow.

Drawer A: The Tax System - How It Works

Canada's Tax System Runs On Self-Assessment
What Signing Your Tax Return Means In Canada
How Governments Raise Revenue

Drawer B: CRA & You - How They See Your Business

What Triggers Tax Audits in Canada?
How Are Sole Proprietors Taxed?

Drawer C: Sales Tax - How It Works

Why Was GST Introduced in Canada?
What Is GST/HST? What Is VAT?
HST Compared and Contrasted To PST/RST

Drawer D: Bookkeeping Tools - How They Work

How Cloud Bookkeeping Platforms Work
Can Canadian Solopreneurs Use Excel for Bookkeeping?

Drawer E: The Economy - What's Behind The Headlines

What Recession Headlines Aren't Telling You
Economic Growth and Prosperity
How Tariffs Actually Move Supply Chains
The Six Stages Of A Trade Deal

P6T3.4 The Site Glossary: Terms and Acronyms
A working reference for terms, definitions, and abbreviations used across this site. If you are mid-article and something is not landing, this is where to look it up.

P6T3.5 Canadian Home Based Business And Taxes
Lots of FAQ about home business taxes

P6T3.6 Good Bookkeeping Practices
LINKS to article on Bookkeeping-Essentials.com

1. Getting setup
2. Basic bookkeeping practices
3. How to read your financial statements

Bookkeeping-Essentials.ca Site Blueprint

How To Use This Blueprint

Free Canadian Bookkeeping Compliance Resource Articles