FAQ

To create a CRA My Account, follow these steps:

1. Visit CRA My Account.
2. Click “Sign In” and choose an option (GCKey or Sign-In Partner).
3. Follow the instructions to register.
4. CRA will mail you a security code within 5-10 business days.

Contact us if you need help!

To create a CRA My Business Account, follow these steps:

1. Visit CRA My Business Account.
2. Select “CRA Register” and provide your Business Number (BN).
3. Follow the instructions and a security code will be mailed to your business address.

Reach out to us if you need assistance!

If you are locked out of your CRA account, you can:

1. Visit the CRA login page and click “Forgot password”.
2. Follow the steps to reset your password.
3. If the issue persists, call CRA’s helpline at 1-800-959-8281.

Contact us if you need help!

Here are some important tax deadlines in Canada:

• Personal tax filing: April 30
• Self-employed tax filing: June 15 (payment still due April 30)
• Corporate tax filing: 6 months after the fiscal year-end
• GST/HST filing: Quarterly/annually depending on your filing schedule

Need help with your filings? Contact us!

If you miss a tax deadline:

• CRA may charge a late-filing penalty of 5% of the balance owing, plus 1% for each month late.
• Interest will also accrue on unpaid amounts.

Contact us immediately if you’ve missed a deadline, and we’ll help you minimize penalties.

To pay your taxes, choose one of the following options:

1. Online Banking: Add “CRA” as a payee using your SIN or BN.
2. CRA My Account: Use the “Make a Payment” option.
3. In-Person: Pay at your bank with a CRA remittance voucher.

Contact us if you need assistance!

Yes, CRA allows payment arrangements:

• Call CRA’s automated Tele Arrangement line at 1-866-256-1147

• Use the “My Account” or “My Business Account” portal.

• .Contact us for help setting up a payment plan.

To register for a GST/HST number, follow these steps:

1. Visit CRA Business Registration.
2. Click “Register Now” and provide your business information.
3. You’ll receive your GST/HST number immediately.

Let us know if you encounter any issues!

You must register and start charging GST/HST when your revenues exceed $30,000 in four consecutive calendar quarters. However, taxi and ride-sharing services must register and start charging GST/HST from day one, regardless of their revenue.

Contact us if you’re unsure whether you need to register.

Here are some common tax deductions and credits you may be eligible for:

• Medical expenses
• RRSP contributions
• Tuition and education credits
• Childcare expenses
• Home office expenses (if you work from home)

Need help maximizing your deductions? Contact us!

Eligible medical expenses include:

• Prescription medications
• Dental and vision care
• Medical services from licensed practitioners
• Travel expenses for medical treatment (if traveling more than 40 km)
• Assistive devices like hearing aids

For a complete list, visit the CRA website or contact us for assistance.

As a self-employed individual, you can deduct:

• Home office expenses
• Vehicle expenses (for business use)
• Professional fees (e.g., accounting, legal)
• Marketing and advertising costs
• Supplies and equipment

Keep records for at least six years. Contact us if you need help tracking these expenses!

Payroll refers to calculating and distributing employee wages, salaries, and deductions. It includes tracking work hours, calculating pay, withholding taxes and deductions, and issuing employee payments.

Employers must:

• Open a payroll account with the Canada Revenue Agency (CRA).
• Calculate and withhold CPP (Canada Pension Plan) contributions, EI (Employment Insurance) premiums, and income tax.
• Remit these amounts to the CRA by the required deadlines.
• Issue T4 slips to employees by the end of February each year.
• File the T4 Summary with the CRA.

Contact us if you need help!

Mandatory payroll deductions include:

• Income tax (federal and provincial/territorial).
• CPP contributions (for employees aged 18 to 70, unless exempt).
• EI premiums (both employer and employee contributions). Optional deductions may include:
• Pension plan contributions.
• Union dues.
• Group benefits premiums.

Contact us if you need help!

The due date depends on your remitter type:

• Regular remitters: 15th of the following month.
• Quarterly remitters (eligible small businesses): 15th of the month following the quarter.
• Accelerated remitters: 3 or 5 business days after the pay period. Late remittances may result in penalties and interest.

Contact us if you need help!

A T4 slip (Statement of Remuneration Paid) summarizes an employee’s earnings and deductions for the year. Employers must provide T4 slips to employees and submit the T4 Summary to the CRA by the last day of February.

Contact us if you need help!

Employers are required to keep payroll records for at least 6 years. Records must include:

• Employee details (name, SIN, hire date).

• Pay periods, earnings, and deductions.

• Copies of T4 slips and records of remittances to the CRA.

• Gross pay: The total earnings before any deductions.

• Net pay: The amount the employee receives after all deductions (taxes, CPP, EI, and other withholdings) are applied.

CPP is Calculated as a percentage of pensionable earnings between the year’s basic exemption and the yearly maximum pensionable earnings. Both employer and employee contribute equally. EI is Calculated as a percentage of insurable earnings, with employers contributing 1.4 times the employee’s EI contribution.

Taxable benefits (e.g., personal use of a company car, health benefits, or gifts) must be included in the employee’s income and reported on their T4 slip. These benefits may also require CPP contributions, but EI may not apply in certain cases.

Vacation pay is typically calculated as a percentage of gross wages:

• 4% for employees with less than 5 years of service (2 weeks of vacation).

• 6% for employees with 5 or more years of service (3 weeks of vacation). Provincial standards may vary, so it’s essential to check local regulations.

• Employees: Employers deduct CPP, EI, and income tax and provide T4 slips.

• Independent contractors: No payroll deductions are required, but contractors may receive a T4A slip for payments made.

Misclassifying workers can result in penalties and back payments.

Employees who qualify for statutory holiday pay are entitled to receive their regular pay for the holiday. If they work on the holiday, they are usually entitled to:

• Premium pay (often 1.5x their regular wage) for hours worked, plus regular holiday pay. Holiday rules vary by province.

An ROE is issued when an employee stops working due to layoff, resignation, dismissal, or other reasons. It provides details about employment history and earnings and is used by Service Canada to determine EI eligibility.

Employers must withhold payroll deductions for non-resident employees if they are performing services in Canada, unless an exemption is granted through a Regulation 102 waiver or applicable tax treaty.

Yes, many businesses choose to outsource payroll to accounting firms or payroll service providers to ensure compliance with CRA requirements and to save time.

• Missing remittance deadlines.

• Misclassifying employees as contractors.

• Incorrectly calculating taxable benefits.

• Failing to provide T4 slips on time.

Not updating employee information (e.g., SIN, address, or tax credits).

Your corporation can deduct:

• Salaries and wages

• Office Supplies

• Marketing and advertising costs

• Professional services (e.g., legal, accounting)

• Business meals and entertainment (50% deductible)

If CRA reviews your return, don’t panic. Follow these steps:

1. Provide the requested documents by the deadline.
2. Keep copies of all submissions.
3. Contact us if you need assistance.

We can help you respond accurately and promptly.

To avoid CRA scams:

• CRA will never ask for payments via gift cards or cryptocurrency.
• They won’t threaten arrest or legal action.
• Verify communication by calling CRA directly at 1-800-959-8281.

Contact us if you receive suspicious messages.

Employment expenses are costs incurred by an employee to perform their job duties. These expenses can sometimes be deducted from income, reducing the amount of taxable income.

Employees who are required by their employer to pay certain expenses to perform their job may be eligible to claim employment expenses. The employer must provide a completed Form T2200, Declaration of Conditions of Employment to confirm these requirements.

Eligible employment expenses vary based on the nature of the job but may include:

• Home office expenses (if you work from home).
• Vehicle expenses (if you use your vehicle for work).
• Supplies like stationery and tools are required for your job.
• Meals and entertainment (if required for work purposes).
• Certain professional fees and dues.

Yes, you can claim home office expenses if you meet one of the following conditions:

• You work from home more than 50% of the time.
• Your home office is used exclusively for work purposes and to meet clients regularly. Eligible expenses may include utilities, rent, maintenance, and a portion of property taxes and mortgage interest (for commission-based employees).

Yes, if you use your personal vehicle for work-related purposes (excluding commuting to and from your regular workplace), you can claim:

• Fuel and oil.
• Insurance and license fees.
• Maintenance and repairs.
• Lease payments or depreciation (capital cost allowance). You must keep a detailed logbook to track work-related travel.

Commission-based employees can claim a broader range of expenses than salaried employees, such as:

• Advertising and promotion costs.
• Entertainment expenses. However, their expenses cannot exceed their commission income.

Meals and entertainment costs may be deductible if they are directly related to your work (e.g., meeting clients). Typically, you can deduct 50% of these expenses.

Yes, if you are required to purchase tools or supplies directly related to your work and your employer has not reimbursed you. This includes items like pens, paper, software, and certain equipment.

The Canada Revenue Agency (CRA) requires proper documentation, including:

• Receipts and invoices for expenses.
• A completed Form T2200 from your employer.
• A mileage logbook (for vehicle expenses).
• Records of home office expenses, including utility bills and lease agreements.

Form T2200, Declaration of Conditions of Employment is a document your employer completes to confirm that you were required to pay certain expenses as part of your job. Without this form, you may not be eligible to claim employment expenses.

Self-employed individuals can claim business expenses but follow different rules and reporting processes compared to employees. They use Form T2125, Statement of Business or Professional Activities instead of Form T2200.

• Claiming expenses without proper receipts.

• Forgetting to get a signed Form T2200 from their employer.

• Claiming commuting costs as travel expenses (daily travel to and from a regular workplace is not deductible).

• Overestimating home office space or including personal expenses.

A non-resident is someone who:

• Normally, customarily, or routinely lives in another country.
• Does not have significant residential ties with Canada.
• Stays in Canada for less than 183 days in a calendar year.

Non-residents are taxed only on income from Canadian sources, such as:

• Employment income earned in Canada.
• Rental income from Canadian property.
• Business income from Canadian activities.
• Pension, CPP, OAS, and RRSP/RRIF withdrawals.
• Capital gains on Canadian real estate.

Non-residents are taxed in two main ways:

• Part I tax: Applies to employment or business income, and capital gains from Canadian property.
• Part XIII tax: A withholding tax (typically 25%) on passive income such as dividends, pensions, and rental income. Tax treaties may reduce this rate.

Whether a tax return is required depends on the type of income earned:

• Yes: If you earned employment or business income, sold Canadian property, or elected to report rental income on a net basis (Section 216 return).
• No: If you only earned passive income like dividends or pensions, and the correct withholding tax was applied.

Canadian payers must withhold 25% tax on certain types of income (e.g., dividends, royalties, pensions) unless a tax treaty provides a reduced rate.

Yes. Non-residents receiving rental income can file a Section 216 return to be taxed on their net rental income (income minus expenses) instead of having 25% withheld on gross income.

Form NR5 allows non-residents to request a reduced withholding tax on rental or pension income by estimating their net income. It must be filed before the first payment of the year and renewed every five years if circumstances remain unchanged.

Yes. Non-residents must notify the CRA after selling Canadian real estate (using Form T2062) and pay withholding tax on a portion of the sale price. A tax return must also be filed to report the gain and potentially receive a refund if the withheld amount exceeds the actual tax.

Canada has tax treaties with many countries to avoid double taxation and reduce withholding tax rates on certain types of income like dividends, pensions, and royalties.

If you stay in Canada for 183 days or more in a calendar year, you may be considered a deemed resident for tax purposes and taxed on your worldwide income.

Non-residents typically pay federal tax only. However, if you earn income from a business with a permanent establishment in a province, provincial tax will also apply.

Non-residents receive CPP and OAS payments with a 25% withholding tax unless reduced by a tax treaty. OAS benefits may also be subject to the OAS Recovery Tax if global income exceeds a certain threshold.

Non-residents can file a Canadian tax return if tax was withheld incorrectly or more than necessary. For example, filing a Section 217 or Section 216 return can help claim deductions and potentially result in a refund.

RRSP: Non-residents can contribute if they have unused contribution room from previous Canadian employment.

TFSA: Non-residents can maintain an existing TFSA but cannot accumulate new contribution room while non-residents. TFSA growth remains tax-free in Canada but may be taxable in their country of residence.

• Failing to file a Section 216 return for rental income.

• Not notifying the CRA after selling Canadian property.

• Assuming Canadian pensions are tax-free due to tax treaty provisions.

• Staying in Canada for too long without understanding the 183-day rule.