CORPORATE TAX INFO
Please bring in:
New corporation checklist:
Minute book so we can make copies of several of your documents.
Business Number of corporation.
PST and WCB Numbers if applicable
WBC exemption letter (if you have one)
Previous accountants email and or phone number and address.
Last years corporate financial statements and income tax returns (if possible)
To make this easier for you, Stage One provides a Corporate Accounting Kit which includes folders to sort all your business expenses. Folder categories are as followed:
Bank Stuff/Income: bank statements, paystubs, deposit books, etc.
Paid by Company Cheque
Paid by Cash
Paid by Company Debit Card
Paid by Company Credit Card (provide statements)
Personal Tax Info (T3, T4, T5, RRSP receipts, donation receipts, medical, etc.)
Help!!! (for info you are not sure about)
Within 6 months of your company’s year-end, you are required to complete and file a Corporate Income Tax Return.
CORPORATE DEADLINES
Company Year-End – can be anytime during the year.
Corporate Income Taxes due – 3 months after your fiscal year-end
Company Filing Tax Deadline – 6 months after your fiscal year-end.
Personal Income Tax – April 30th
Payroll remittances – due the 15th of the following month
GST – quarterly or yearly
T4’s for Employees – must be reconciled and filed by February 28th.
GST
You must be registered for GST as soon as you or your company collects $30,000. Your employee earnings are not included in this $30,000. Even if you earn the money outside of the country or are working for a company that is outside the country. You don’t charge them GST but you must be registered.
You must show your GST number on your invoices. The payroll company or your agent will take care of this for you. The company must pay you an extra 5% for GST. THIS IS NOT YOUR MONEY. DO NOT SPEND IT. You are a tax collector for the government and they will want it immediately. And they get quite nasty if you don’t give it to them.
You can file annually, quarterly or monthly. Most of our self-employed people file annually with their tax returns. Most incorporated companies file quarterly. GST is due upon filing.
If you have further questions about GST – please do not hesitate to contact us!
WORKSAFE BC
It is very important to ensure that you, your employees and your contractors are registered with WorkSafe BC. This government agency provides benefits and compensation to the employees, management and contractors who get injured on the job with your corporation. (ClickHere)
If you are the only person in the corporation and you work on one show at a time you will need a WCB exemption letter. We can apply for this for you and your company.
For corporations with rental equipment or more than one employee or contractors, WorkSafe BC provides benefits and compensation to the employees, management and contractors who get injured on the job whilst working for or through your corporation. Here is the link on Worksafe’s webpage containing information you should know. (ClickHere)
If you have further questions regarding WorkSafe BC – please do not hesitate to contact us!
PST
The province of British Columbia levies a Provincial Sales Tax of 7% on the majority of products and some services for sale within BC.
It is very important to point out that even if your business is strictly a services business, your services may be applicable under the PST Act. You may also be required to collect PST in other provinces that you will be conducting business in. Talk to us.
If you are renting small pieces of equipment to a show and you are the only person using it you will not need to charge PST. If you rent expensive equipment and only you use it you may need to register. If other people are using it you must register.
If you have further questions regarding PST – please do not hesitate to contact us!
PAYROLL
You will be paying yourself a salary of some sort from your corporation so it is important to understand the payroll remittance requirements set forth by Revenue Canada Taxation. There is some flexibility in when and how the payroll remittances are made for the owner. We will work with you, using our years of experience to give guidelines on how and when to remit.
If you have employees, there is no flexibility. You have hired the employee at a particular wage or hourly rate. You must take deductions and those deductions must be remitted to CRA every month. We can help you with that.
The payment of these remittances are extremely important. The CRA has rules in place and takes the failure to provide timely payment very seriously.