Quarterly Remittance Option for New Small Business Owners
In prior years, a new employer was required to make monthly remittances to the CRA for their employees’ source deductions. Applicable for 2016 and subsequent years, eligible new small employers have the option of remitting their payroll deductions quarterly, instead of monthly in their first year of operations.
To be eligible:
• You are an employer who is paying remuneration to an employee for the first time after 2015
• Your monthly withholding amount (total of CPP, EI and income tax deductions, including your share of CPP and EI) is less than $1,000; and
• You have a perfect compliance history
A new employer will have to register their payroll program with the CRA. Upon review of the payroll registration information, the CRA will then notify the employer if they can remit quarterly.
For more information on eligibility and any other questions, please follow link http://www.cra-arc.gc.ca/gncy/bdgt/2015/qa05-eng.html
The preceding information is for educational purposes only. As it is impossible to include all situations, circumstances and exceptions in a newsletter such as this, a further review should be done by a qualified professional.
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