New Year - New Audits!
Year-end - T4 - Bookkeeping Cleanup
We can help you prepare!
The year 2020 has definitely been one for the books! Not only have we experienced drastic changes to our normal way of life - including the emergence of medical masks in the grocery store, six-foot barriers between us and our loved ones, and the general worry we have of catching the COVID-19 virus - but we have also changed our way of business - our office locations, workplace policies, budget cuts, business strategies etc. The world is not what it once was and, although we would have liked to say otherwise, business is not as usual this year.
Now, as we prepare to finalize our year with quiet holiday celebrations and minimal new year festivities, we have to also begin preparing for year-end tax audits, incoming T4 slips and new reporting requirements for the new government funding programs.
Thankfully, this is what Nextgen Business Solutions specializes in! We’ll get your 2020 consolidated and prepare you for 2021! You handle the tinsel and Christmas trees and we’ll handle the T4 slips and bookkeeping!
How Has COVID-19 Affected Small Businesses?
So many small businesses have come to Nextgen Business Solutions throughout 2020 with questions on how to keep their business afloat this year. We’ve had discussions regarding smart budgeting, better document management and analysis, and how to prepare for their CRA (Canada Revenue Agency) audit. We are so relieved to say that a large majority of small businesses were able to receive government funding and reimbursement for the loss of their regular income.
Now that the year is up, the next step is to circle back and begin preparing the new 2020 CRA documentation needed in order to properly document the use of that financial support.
How do you prepare for the new CRA audit requirements this year?
The CRA has already begun preparing and releasing new documentation and reporting requirements for the 2020 Tax Year. Because of the necessary government funding that took place throughout this past year, they have introduced new reporting requirements for the following:
- T4 Slips
- Statements of Remuneration Paid
This new documentation will apply to ALL employers, including small business owners, and will help the CRA validate payments under the:
- Canada Emergency Wage Subsidy (CEWS)
- Canada Emergency Response Benefit (CERB)
- Canada Emergency Student Benefit (CESB)
Important Note: Eligibility criteria for the CERB, CEWS, and CESB is based on employment income for a defined period of time. The new requirement means that employers should report income and any retroactive payments made during these periods.
Contact Next Gen Business Solutions
Have you applied for or received government funded subsidies during the year 2020? If so, you need to begin the reporting process today! At Nextgen Business Solutions, we can ensure that your business is back on track and prepared for the new year!