Getting your business ready for tax season in CA

Requirements vary by province and can change depending on the structure of your business, so you’ll need to do some research and find out how to calculate your provincial and federal taxes. Check out the Canada Revenue Agency (CRA) resources for small businesses to better understand your tax obligations.

Payroll deductions in Canada include Canada Pension Plan (CPP), Employment Insurance (EI), federal income tax, as well as provincial and territorial income tax. CRA has a payroll deductions calculator to help businesses determine their required deductions.

Payroll deductions in Canada include Canada Pension Plan (CPP), Employment Insurance (EI), federal income tax, as well as provincial and territorial income tax. CRA has a payroll deductions calculator to help businesses determine their required deductions.

The CRA offers free personalized support to owners of small businesses and self-employed individuals through their Liaison Officer program. Liaison Officers can help you better understand your tax obligations and help you determine the best systems to manage your business taxes.

Scrambling to make a payment just before its due date is stressful, and you may incur a penalty for late payments. Avoid the stress by learning when your taxes will be due and plan ahead to make the payments on time or early.

Many small business owners struggle with this point, but separating your finances is worth the effort. Not only will it be easier to sort through your income and expenses as you prepare your taxes each year, it will make the audit process much smoother should you ever be subject to one.

It’s tempting to forget about taxes the moment the due date passes, but creating good habits throughout the year will help you avoid the stress of struggling to get all your paperwork and payments together last minute. Make an effort to track your expenses, digitize receipts, and invest in software to improve your record keeping and facilitate accurate tax payments made on time.

Not all small business owners are accounting experts and most don’t have the time needed to keep track of the accounts while making sure all the other aspects of their business are running smoothly. Hiring a qualified accountant or tax preparer is a wise business investment that can help your business thrive and even save you money in the long run. They will also be able to keep you up to date on the ever changing tax laws.

Con artists have come up with a number of tax scams designed to cheat you out of your money or steal your business identity. Always guard your sensitive tax, business, and personal information carefully and get to know how the Canada Revenue Agency works to avoid being fooled.