What to Do When your Tax Obligations are Overdue

Small business owners have the added responsibility of ensuring that they are aware of, and comply with, a variety of tax obligations.  For some, this can be somewhat overwhelming, resulting in an accumulation of government notices, assessments, requests for information etc. that just add to stress levels.  While ignoring the problem, hoping that it will go away, may seem like an attractive option, it is important to note that the revenue agencies never forget.  They are also both able and willing to take extreme measures to collect upon what they perceive to be unpaid debts eg. Freeze your bank accounts.
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What Small Business Owners need to know about Tax Filing Deadlines for 2014

One of the responsibilities of being a small business owner requires having to submit a variety of tax declarations by specific deadlines or face consequences that involve penalties, interest and if left long enough, aggressive letters from Revenue Canada and Revenue Quebec.  The bad news is that there is no way around it and ignoring it does not make it go away.  The good news is that if you are prepared and organized it doesn’t have to be painful and can actually be quite straightforward with the right infrastructure.  The first step is to be aware of the deadlines and understand the obligations that go along with it:

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5 Reasons to Change Your GST/HST/QST Reporting Period and How to Do It

When starting a business  the selection of the GST/HST or QST reporting period i.e. how often to file your sales tax returns is often based on new business considerations.  Either you are over enthusiastic and you want to file frequently or you don’t want to be bothered with the administrative hassle and select the annual reporting option.   As time passes and your business evolves, you might realize that the option that you initially selected may no longer be the most optimal.  There are several reasons that you might want change your reporting period:
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Guidance on Registering for Payroll and Remitting Source Deductions

 

There comes a time for many small business owners when they decide that they need to hire employees.  This is usually an excellent sign as it means a) the business is growing and b) the small business owner has learned to delegate.  It also means that additional paperwork needs to be filled out and additional taxes need to be paid.  The simplest option when deciding to augment your workforce is to have the new worker invoice the business, based on hours worked or some other formula.  Unfortunately, there are very specific rules as to who qualifies as a self employed contractor.  Essentially, if your worker  is working full time, has little flexibility and you provide the tools, then the tax authorities will classify them as an employee.  In this case, you must take your new worker on as an employee, register for payroll, pay them a salary and submit regular, periodic payroll reports and payments to the Canada Revenue Agency (CRA).  As usual, if you live in Quebec, you must submit to Revenue Quebec (MRQ) as well.  The registration procedure is discussed below:

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