One of the things that business owners should keep in mind as they are calculating and remitting payroll deductions says Edmonton bookkeeping is that they should do it properly. The reason why, is because Canada revenue agency penalizes businesses that make mistakes on this very highly, issuing the highest penalties that CRA hands out. The reason why, is because Canada revenue agency abuse source that actions as money held in trust for the government. If an entrepreneur is not remitting it on time, or in the right amount, they view it as misuse of government money. Therefore, entrepreneurs should ensure that they are aware of all the ways that payroll audit can be triggered, so they can avoid triggering one in their business.
There are three ways that entrepreneurs can trigger a payroll audits in their business. They can file T4 and T fives late, they can remit source deductions late or not at all, or pay too little by the end of the year. However, the positive thing that entrepreneurs should understand, is if they learn these three things and how to avoid them, they will never have to go through a payroll audits in their business.
The first thing that entrepreneurs should take into consideration, is to remit source deductions on time every single month. Edmonton bookkeeping says that the deadline to submit payroll remittances is the fifteenth day of every month. However, they should keep in mind that the month that it is owed is in the month following when the paid role actually happened. For example, if the payroll happened in April, then they remittances are due on 15 May. If they pay it late, then they can expect at the very least to get a penalty, and potentially even triggering a payroll audit.
Therefore, Edmonton bookkeeping recommends that entrepreneurs can simply avoid paying this late. They should not have to find the money, because they are literally withholding from their employees checks. However, the recommendation is for entrepreneurs to avoid submitting payroll minces on the fifteenth of the month. If business owners can get into the habit of submitting remittances at the same time that they calculate their payroll, not only can they increase the accuracy of the source deductions that they limit. They also can save time by doing it all at once instead of having to come back to it. And the most positive thing is that if they submit payroll remittances at the same time that they run payroll, they will never file late, and trigger a payroll audit.
With how important avoiding a payroll audit is, business owners should ensure that they are following these best practices to ensure that they are submitting their payroll remittances well before the fifteenth of the month, and in the correct amount. By doing this, entrepreneurs can ensure that they are never triggering a payroll audit because they are not paying payroll remittances on time.
Edmonton Bookkeeping | Tips To Help Entrepreneurs Avoid Payroll Audits
Business owners should keep in mind that not only are payroll audits time-consuming, they can also be disruptive to business says Edmonton bookkeeping. In addition to disrupting a business, they will audits can be accompanied by penalties, and those penalties can grow as Canada revenue agency scrutinizes the entrepreneurs business. Because of that, business owners should avoid triggering a payroll audit by any means necessary.
In order to ensure that they are avoiding triggering a payroll audit, they should ensure that they are paying the correct amount of source deductions every time. Edmonton bookkeeping says that this means that entrepreneurs should be calculating the correct amount of source deductions, not only for their employees salary, but for theirs as well. This means understanding the income taxes, EI as well as CPP must be withheld and remitted to CRA not just for employees but for the business owner as well. In addition to that, Edmonton bookkeeping says that business owners also need to ensure that they are remitting CPP and EI on the half of their business as well.
Even if an entrepreneur has taken due diligence to calculate source deductions accurately, if at the end of the year, their T fours show that they should have paid more, prior to finishing filing the T4, an entrepreneur should send the amount that is left owing before they file their T4 slips. This way, an entrepreneur can avoid triggering a payroll audit and penalties in their business.
When it comes to filing their T fours, an entrepreneur needs to also ensure that there filing these on time. Since the T4 slip is going to record all of the payroll deductions that should have been withheld from each employee, and submitted to Canada revenue agency it is important that entrepreneurs file this on time. The deadline for T4’s and T5’s to be filed is the last day of February says Edmonton bookkeeping. This means that it is February 28, unless it is a leap year and then it is February 29.
If entrepreneurs miss filing a T4’s by this day, the can be certain that in addition to potentially triggering an audit, it can end up triggering penalties as well. The penalties associated with filing T fours late is being assessed monetary penalty for every employee that an entrepreneur has, and the penalty being added on every day that an entrepreneur has not filed their T4 and T5 yet.
With how financially devastating the penalty can be for filing the T5 and T4 late, and withheld avoidable it is, entrepreneurs should work hard to ensure that they are not incurring penalties that may become financially difficult to pay. Even though a payroll audit may be a very large annoyance and to’s turbines in the business. Businesses also have gone out of business by running out of money, and incurring unnecessary penalties is one way that business owners may find themselves running out of money in their business. By avoiding triggering an audit, and incurring penalties, entrepreneurs can ensure that they are building a successful business.