Tax slips are often received in the months before April. It is important in those first few months to prepare for the slips and get them organized. The T4 slips is a statement of remuneration paid, in other words money paid for work or service. T4A is income from a source other than work, such as pension or annuity. Non-work related income is also covered in T5, which goes over investment income. T5007 covers benefits, and T5018 covers contract payments. Dely & Associates can provide any information about these tax slips, along with assisting with preparation of slips.
A record of employment is an essential component for workers that want to apply for Employment Insurance (EI) benefits. Especially now, when many are out of work due to the pandemic, keeping track of employment history to receive EI is crucial. A record of employment determines if the employee is eligible for insurance, and over how much time the recipient will be paid. No one should have insurance withheld from them if they need it. Dely & Associates will ensure your record of employment is accurate and submitted on time.
A taxable benefit is given from an employer to an employee, but is usually separate from the standard payroll. These benefits must be determined by the employer to be taxable benefits, and those benefits must be reported within the employee’s personal income taxes. Some examples of taxable benefits that must be reported include tips, travel expenses, boarding, lodging rent-free or low-rent housing, gifts over $500 per year, use of vacation property owned by the company, personal employer-paid courses, prizes and awards and life insurance premiums. If you are still unsure which payments or benefits you have received that are taxable, Dely & Associates can help you sort through with our knowledge on the topic.
A quick and convenient way to receive payments from your work is to set up the payroll to be received via direct deposit. There are a few steps needed to set up direct deposit, but receiving payments afterwards becomes far easier. Firstly, you need the routing number of your bank, which tells the company paying you what bank you use. You also need your account numberwhich appears on personal checks or your bank’s website. Lastly, you need to clarify if the payment will go to a chequing or savings account. Dely & Associates can assist with walking you through the process of direct deposit, or helping with any issues around it.
CRA requires employers to remit their payroll source deductions frequently. These source deductions are a combination of the federal and provincial taxes withheld from employee’s payroll and the business’ portion of CPP and EI. It is very important that every business plan for monthly or quarterly source deduction remittances as the CRA will charge penalty and interest for late payments. If you are unsure what qualifies as source deductions or need help making the calculation, Dely & Associates can help.
To calculate Workplace Safety and Insurance Board (WSIB) calculations, you need to calculate your gross insurable earnings by your premium rate and then divide by 100. Note that you will have to calculate NAICS (NC), and you will have to calculate each one separately if there is more than one. If you own a business, you must determine the gross earnings for each person during the reporting period. Remittance is a sum of payment for goods or services as a gift. If you have given or received remittance, that must be noted as well in a report of income. If you need assistance in calculating safety, insurance or remittance payment, contact our experts at Dely & Associates.
Employer health tax (EHT) is a remuneration paid to employees or former employees (if within the tax time period) presented as a payroll tax. Due to events related to the pandemic in 2020, EHT exemption was increased from 490,000 to $1 million that year. The Ontario Government later announced that the change would be permanent. For employers to qualify, their title must be deemed eligible by the EHT Act. However, the exemption will not be granted if the employer’s payroll is $5 million or higher. EHT rates vary from 0.98% on an Ontario payroll less than $200,000, to 1.95% for a payroll $400,000 or higher. For more information of payroll calculations and added remittances for employers, our experts at Dely & Associates can help you.
Why hire Dely & Associates?
Need help with accounting services for your business? Let the experts at Dely & Associates help you.
To eliminate errors while saving you time, money, and stress.
To assist with all finance-related work.
To retain a trustworthy source of support.
To help you make better business decisions.
To give you guidance while planning for the future.
To save you tax.
To help you avoid audits.
To facilitate CRA compliance.
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Dely & Associates
57 Colborne Street West,
Brantford, ON N3T 1K6