Bookkeeping-Essentials.ca Site Map

• Introduction
• Links to Common Questions
• About This Site -- Sister Site Bookkeeping-Essentials.com
• Where Do You Want To Go Next
• I Don't Do Taxes -- Surprise, Yes You Do!
• Small Business Compliance Responsibilities
• What To Do When You Can't Pay Your Taxes
• It's Easier to File And Pay Online
• Vehicle Expense Reimbursement Options
• How CRA Defines The Platform Economy
• Everyone Has To Save For Retirement
• Canadian Bookkeeping Tax Rates - Quick Links
• Be Tax Compliant This Year
• Start A Habit With This Canadian Bookkeeping Compliance Resource
• Healthy Breakfast Smoothie To Start Your Day Right - Work Life Balance

Small Business Tax Obligations in Canada

• How Do You Start Your Day?
• Easy links to articles about tax deductions (self employed, corporate, employee benefits), tax audits, and tax compliance deadlines summary
• Little Known Deadlines
•      Small Business Deadlines    
•      Tax Obligations With Moving Timelines You Should Know
•      Current General Season Deadlines
•      US Deadlines That Affect Canadians
•      Benefits and Interest Date Reminders

Tax Compliance in Canada | Learn Your Tax Filing Deadlines

• Summary of Deadlines
• What Are You Looking For?
• Highlights of Page
• Tax Compliance in Canada
• Government Remittances and ASPE Disclosures
• Sidebar: Funny Thing About Habits
• Income Tax Filing Deadlines For The Self-Employed T1 Schedule T2125
• Self-Employed Quarterly Tax Installments Deadlines
• Self-Employed Tax Notes
• Income Tax Filing Deadlines For Corporations T2
• Corporation Tax Notes
• Directors Liabilities For Compliance Taxes
• FAQ About Tax Compliance in Canada

GST HST Filing Deadlines

• Highlights of Page
• GST HST Tax Filing Deadlines Form GST34-2E
• What Are You Looking For?
• Funds Collected In Trust - Don't Fall Down This Rabbit Hole
• Online Filing of GST HST Returns
• Annual Filers Deadlines- Payment & Filing Deadlines Are Different
• Paper Filing Form GST34-2 Or Form GST34-3
  
• Four Ways To Pay Your GST HST Owing
• Improve Your Cashflow
• FAQ about GST HST

Payroll Tax Filing Deadlines For Canadian Small Business

• Employer-Employee Relationship Status vs Independent Contractor Relationship Status
• Highlights of Page
• What Are You Looking For?
• Payroll Tax / Source Deduction Remittance Deadlines Form PD7A
• About The Source Deduction Due Date
• What Is The Deadline For T4 Slips To Be Issued?
• Can I Provide Electronic Copies Instead Of Paper Copies?

T4A Information Slips (Independent Contractor Deadlines)

• Tax Reporting T4A Information Slips And Deadlines
• Canadian Subcontracting Self-Employment Taxes | Workers' Compensation
• Retiring Allowances Are Reported On T4 Slips
• Canadian Subcontracting Reporting Requirements
• BEFORE You Hire A Subcontractor ...
• FAQ About Hiring Independent Contractors

Canadian Payroll Tax Guide

• What To Do If You Are New To Payroll Administration
• How to Hire Your First Employee | 7 Steps
• Dig Deeper Into Other Payroll Issues
• Personal Services Business | A Special Category

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

T4 Slip Boxes 24 and 26

• 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

Canadian Payroll Tax Rates

• 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?

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

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

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 >> Employee Taxable and Non-Taxable Benefits

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

How To Register For GST HST In Canada

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

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

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

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

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

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

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

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

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

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

TO COME ...

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

Basic Canadian Income Tax Compliance (Image Index and Quick Rate Links)

• Self-employed income tax deductions image index
• CCPC income tax compliance image index
• Employee taxable and non-taxable benefits image index
• Links to CRA prescribed rates
• How governments raise tax revenues

How are Sole Proprietors Taxed?

• How Sole Proprietors Are Taxed In Canada
• How Your Business Tax Deductions Affect Your Personal Taxes
• The Tax System In Beer
• Best Way To Pay Less Tax
• How To Calculate Your Marginal Tax Rate In Canada
• Dividend Gross Up Rates (current and historical)

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

13 Non-Deductible Business Expenses

1. Personal Expenses
2. Double Dipping Of GST HST Input Tax Credits
3. Draws Paid To Yourself
4. Donations To Charities Do Not Qualify
5. CRA Interest And Penalties 
6. Other Fines And Penalties
7. Life Insurance Premiums
8. Appraisal Fees
9. Transactions Made To Avoid Tax
10. Club Memberships And Dues
11. Your Own Labour
12. Meals Eaten During An Ordinary Business Day Where No Business Meeting Was Conducted
13. Advertising With Foreign Broadcasters

8 Common Tax Mistakes

1. Prepaid Expenses
2. Capital Expenditures
3. Lease Payments
4. Meals and Entertainment
5. Legal Fees Incurred to Buy a Capital Property
6. Use of Your Home Telephone for Business
7. Inventory
8. Advertising In Periodicals

Sidebars:

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

Meals and Entertainment Expense Deduction

• 50% Deductible Category
• When Are Meals And Entertainment 100% Deductible?
• Can I Deduct Meals Eaten While Working?

Do I Meet the Criteria to Claim Home Office Expenses?

1. 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?

2. 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

3. 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

4. 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

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

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

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?

Canadian Home Based Business And Taxes

• Lots of FAQ about home business taxes

A Simple Tax Compliance Method For The Self-Employed
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
• Simple Cash Management System
• Owner's Pay
• Before You Spend Money Ask These Questions
• Money Tips

TO COME ...

• How to Claim Your Input Tax Credits on Your Vehicle

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)

Understanding Your Investment Tax Slips | Do You Have An Exit Strategy From Your Business?

Understanding your investment tax slips

• 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?

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?

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

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

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 

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
• 2024 Employee Tax Free Auto Allowance Rate -- Prescribed Cents Per Kilometre
• Who Cannot Use The Tax Free Auto Allowance Method? Sole Proprietors

CRA Mileage Logbook Requirements
(Applies also to self employee and incorporated owner-managers)

• 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?

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®

Canadian Prescribed Interest Rates

• 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

CRA Subcontracting Reporting Requirements

• Employee Or Self-Employed? |  CRA Employment Status Determination
• Do You Use A T5018 Slip Or T4A Slip?
• Can You Report Subcontract Amounts On Line 10400 - Other Employment Income?
• 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?

Should You Hire A Personal Services Business?

• From the viewpoint of the business owner
• From the viewpoint of the non-employee
• FAQ about personal services businesses

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

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

Small Business Bookkeeping Basics
LINKS to article on Bookkeeping-Essentials.com

• Geting setup
• Basic bookkeeping practices
• How to read your financial statements

Understanding Tax Audits in Canada

• What It Means When You Sign Your Income Tax Return
  
• What Triggers Tax Audits In Canada?
• Tax Review Process
• The Difference Between A CRA Review And CRA Audit
• Tax Audit Process
• Office Audit (Tax Reviews) Versus Field Audit (Tax Audits)
• Why You Want To Amend A Tax Return ... To Avoid Interest Penalties
• Understanding Tax Audits In Canada

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

Responding To A Tax Audit Notice

• 7 Steps to Follow
• How To Ease The Pain of a CRA Audit
• Difference Between an Audit and an Investigation
• 6 Common Misconceptions About Tax Audits
• Requirement of Law
• Audit Ready "Preventative" Bookkeeping
• Wrap-Up

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 

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

Business Record Retention In Canada | Data Storage Considerations

• CRA & PIPEDA's different purposes
• Who Must Keep Business Records In Canada
• What Business Records Must Be Kept By A Canadian Business
• How Must Business Records Be Kept In Canada
• 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
• Takeaways
• Wrap Up Business Record Retention

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