Business Deadlines in February
I’m asked all the time about deadlines for sole proprietors and for corporations and I’ve discussed it at length. But what I haven’t talked about yet is the shared tax filing deadline ALL businesses have in February. And that is the T-Slip filing deadline.
What is a T-Slip?
A T-slip is used by the Canadian Government as a way of reporting income to individuals and other businesses to ensure that it is easier for people to comply with their tax requirements and as a way to ensure people report their fair share of income.
Because it is so relied upon in our tax system, someone has to track the info and put in the paperwork so these slips are available on time and are accurate. This means that all businesses have a requirement to file these slips and they’re all due in February.
What do you have to do?
The two most common slips that have to be filled out by businesses are T5s to report interest or dividend income and T4s for their employees. For T5s, it’s important to have the information of all investors so you can allocate dividends paid appropriately and fill out all the details on the slip. For T4s it’s a LOT more complicated. T4s for employees report earnings, tax remittances, CPP and EI remittances, stock option benefits, automobile benefits and many more. Because of the amount of things that employees are commonly taxed on, a payroll system is a VERY good investment. Whether you’re using something like Payment Evolution or Wagepoint or outsourcing to a payroll company like Ceridian, it’s a great idea to use a system purpose built for this. This will make your February much easier each year and help you avoid the steep penalties associated with filing such slips late.