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E-Myth – “Why most small businesses don’t work & what to do about it”

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Edmonton Accounting Firm | Somebody Works With Filing Confusion

Consider that there are potentially a lot of video secrecy and a lot of corrections that need to be made, says Edmonton accounting firm, about the differences and the similarities between T fours and T fives. It can be very confusing, especially for a new small business owner. That is why you have hopefully taken the advice of many small business owners and retained the services of a charter professional accountant.

T fours are going to total up all of the differences with the CPP taken off of each check. As well, employer can contributions will match those Canada pension plan remittances. Keep in mind that you’re going need to know what was the employment insurance removed off of each check as well. It is and can be a set rate which is approximately 1.4%, at least in Canada. Then, what is the tax taken off.? They’re going to add all five items because it’s reported on all the T fours. Make sure that you have filed the T4 with the T4 summary. As well, the T5 with the T5 summary should be filed the same as well. It’ll have the total remittances that should have been submitted they are going to compare the numbers and going to make sure that you have legitimately submitted everything.

What happens is payroll auditors are on the lookout for specific names first from within your small business. They will hone in on the John Doe’s, and the Sam Smith’s of your business and they are going to be auditing for proper names first.

Make sure that you understand that the Corporation will be audited and it will be taken care of for the fundamentals of the business after all of the individuals have been taking care of, says Edmonton accounting firm. As well, just because you are having having the money that is coming out of the Corporation for personal benefit, or on a non-cash personal benefit that you’re coming out of the Corporation, what it be or the owners or for employees.

T4 relates specifically to employees wages and salaries. Is employment income on T fours. Either the owner or an employee of a corporation will be able to retain a salary from that particular business owner. The dividends on the other hand are taking care of by not the T fours, but the T fives instead.

Edmonton accounting firm says to make sure that you understand exactly how you’re going to get paid and how much you need to pay your employees. Potentially what you can do is you can hand over altogether all of the payment issues and the jobs to your charter professional accountant. That you will be able to wash your hands of that particular job so that you can work towards other parts of your business and focus toward profitability that much quicker.

The mechanism for which everything is going to need to get done is super important as well and the charter professional accountant has gone to school for years and years in order to hone those skills.

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It is very unlikely, says Edmonton accounting firm, that a rookie small business owner, or even a seasoned veteran is going to understand all of the idiosyncrasies with a T4 or a T5 in particular. That’s why it’s so important to get on your staff a charter professional accountant. The reason for that is because it needs to be filed after each month. You have 15 days from the end of the previous month in order to get it into your charter professional accountant and to your Canada revenue agency. It is thoughtful if you have search for an accountant and they have stepped up and done all of the paperwork for you and you don’t have to have an extra helper here means a lot of money.

Make sure that the file is legitimately filed on time. This will remove the suspicion of the Canada revenue agency away from your business, and you can go about not having to worry about getting audited.

The second way with which you can get away with not being audited, is you pay your payroll remittances on time.

Don’t get short paid on a lot of the payroll remittances as that could potentially happen to employees, or sometimes even the pay payroll remittances for the employers as well. The shareholder also has a T4 that has to be declared. Often times what happens is there is the ability to move income balance because it’s never really been classified by the charter professional accountant before anyway. Which means that that some of the payroll remittances that you can apply to the owner can be applied as well to the employees.

They also can find a very different mechanism to pay the owner. Whether that be through wages, or dividends, that will be up to the charter professional accountant and the owner. However, nine times out of 10, says Edmonton accounting firm, they are paid out of the dividends package from within the small business.

As well, make sure that you have understand that money is coming out of the business and it obviously needs to be replaced. You have to have a plan in order for you to retain and become being a very profitable company. You have to focus towards your goal of time and financial freedom for yourself and your family. Make sure that it is in the best interest of everybody that you make these decisions along with your charter professional accountant.

It’s going to total up what the Canada pension plan and the employment insurance is looking at in terms of Edmonton accounting firm. Make sure that you have not missed any deadlines and that you have not incurred any penalties because that would just suffer under your wage and salary. It will also cut into the amount of money that you personally as the small business owner can take in because you want your bank accounts balanced.