Tax Tips - Business Tips: Payroll

Payroll deductions are due on the 15th day of each month, unless your payroll deductions are over $15,000 per month.  If your payroll deductions are over $15,000 per month, you must pay your payroll deductions to the Receiver General every two weeks.  There is a penalty of 10% of the amount not paid if you are late.  Payment is only recorded as being received when actually received by the government.

The federal government changes some of its deduction rates and the beginning of the year and at the end of June.  If you are using a computer program, you must have your computer program updated on these dates to ensure that the deductions are calculated appropriately.  If the deductions are incorrectly appropriated you will receive a Peer Review when you file your T4s.  There are some minor corrections that can be made when you complete your T4s.

T4s representing the payroll for all of the year are to be filed by the 28th of February of each year.  Late filed T4s will be subject to a fine and there is also provisions for fines if you file T4s for individuals who have not provided you with their Social Insurance Number.

In 1997 the Unemployment Insurance charges have been changed to Employment Insurance charges.  They will now be deductible on every hour worked by the employee.  This means that in 1997 you will no longer be able to have casual employees as you must deduct employment insurance on each one.  Employees who have low incomes shall receive a refund of their EI paid, however, the employer will not receive a refund of their portion of the EI paid.