Have You Filed Your T4s Already?
Don’t Forget About The New T4 Documentation Requirements!
Next Gen Business Solutions provides small business owners with professional bookkeeping guidance and services.
The COVID-19 pandemic has made Year End Procedures, Tax Season and T4 preparation more complicated than ever. We can help you get things organized again!
If you are a business owner, chances are you have filed your T4s and T4 Summary already. Great! That was a huge job this year.
Your employees can now file their personal taxes!
However, now is when you must be prepared for the CRA (Canada Revenue Agency) to contact you regarding the information you included in those T4s - or rather, did not include!
Keep reading to learn more about the new T4 Documentation Requirements!
New T4 Requirements For Small Business Owners In 2020-2021
This year, T4 documentation papers have 4 extra boxes that need employer’s input. Those boxes contain information for the CRA to determine whether employees have applied and received any CERB; That is when the fun starts!
Finding a small discrepancy in your finished documentation is good cause for the CRA to then complete a full review! Are you ready for that?
At Next Gen Business Solutions, we can help you prepare your documentation and revise your T4s if necessary.
“My accounting software calculated those numbers for me, what happens if I get questioned on it?”
When using accounting software, it is important that you are prepared to present all of the details along with the final calculation. This can be a confusing and time consuming process, but don’t worry! We can get your books bad in order fast!
Additional Documentation Requirements For CEWS and TWS In Canada
The other additional reporting that all businesses had to complete for 2020 was related to CEWS (Canada Emergency Wage Subsidy) and TWS (Temporary Wage Subsidy-10%).
You recall that back in March 2020, the Government of Canada introduced TWS in order to help small businesses reduce the cost of payroll taxes. This year, all businesses are asked to report the details of how they came up with their 10% TWS. The tricky part is that, at that time, we were told to calculate based on the pay date and deduct it from your payroll remittance of the same month respectively!
Confusing right?
Now, the wording has changed and, when you are reporting the details of your TWS on form PD27, you must file them by Pay Period. This might cause a discrepancy for many small business owners. Causing them to return some of that money given to them. It could also come out of their CEWS claims/applications.
If you find all that a bit confusing and complicated, you are not alone and WE CAN HELP!
CRA Reviews And Auditing Preparation In 2021
At Next Gen Business Solutions, we specialize in dealing with CRA Reviews and Auditing. We do the bookkeeping preparation, represent you and your company, and communicate with the CRA to make sure they are satisfied and you are in compliance with the new requirements.
Even if your books are out of date and need a bit (or a lot!) of tying up, Next Gen Bookkeepers can prepare you for the CRA questions.
See What Our Clients Are Saying Here!
How To Start Respond To A CRA Review Inquiry:
- Make sure to check your email on your CRA My Business Account. This is where the CRA would contact you for a review (If you do not have My Business Account, you can read all about it in this link).
- Note the deadline on the inquiry. If you need more time to make the adjustments, call them and extend that deadline. We can also negotiate with the CRA on your behalf! We speak their language!
- DO NOT IGNORE this review notice.
Work With Experienced Bookkeepers At Next Gen Business Solutions
CEWS, TWS, CEBA, CERS, etc. all provide great financial support throughout this pandemic! As small business owners, we know the value of cash flow, which these subsidies are providing.
However, as the Federal Government stated at the beginning of pandemic, they released the cash first and will check later. Later is now.
Be prepared for it and take most advantage of what you are qualified and eligible for. We are here to advise you, train you, or do it for you if you find them overwhelming.
If you’ve ever asked how to keep books for a small business or how to organize your small business payroll - we’ve got the answers!
Benefits Of Working With A Professional Bookkeeper
- We save you time!
- You can focus on growing your business!
- Experience a stress free tax season!
- Avoid expensive penalties for missed deadlines or information discrepancies!
Do not wait for the last minute, do your prep work. Start your Year End Procedures, Tax Season and T4 preparation now! We can help you get things organized again!
