Blog posts tagged in employer
As an employer, do you give your employee a benefit, an allowance or an expense reimbursement? You have given an employee a benefit if you as an employer pay for or give something that is personal in nature directly to your employee or to a person who does not deal at arm’s length with the employee (such as the employee’s spouse, child or sibling). What is a benefit? A benefit is a good or service you give or arrange for a third party to give, to your employee such as free use of property you own. It also includes an allowance...
What can the CRA do if you do not pay the amounts held in trust? If the deemed trust amounts are not paid in time, the CRA can take several actions including garnishing bank accounts, accounts receivable, and any other income sources, seizing and selling assets, and using other legal actions to collect amounts owing. What happens if your business has a deemed trust debt with the CRA? If your business have a deemed trust debt owing to the CRA, the amount of the debt becomes secured to the CRA over all your assets, regardless of any security interest you may...
What are deemed trusts?
Deemed trust amounts include amounts that an employer deducts and withholds from the wages of the employees and GST/HST amounts that are collected by businesses from customers.
These amounts are important sources of revenue for the government and are collected by businesses as agents of the government. Parliament enacted powerful tools to collect these amounts and protect these from being diverted to other creditors. As an employer, you hold in trust amounts that are deducted from your employee’s wages for income tax, Canada Pension Plan (CPP) contributions and employment insurance (EI) premiums. Payroll deductions, CPP contributions...
Remittance Thresholds for Employer Source Deductions
The budget proposes to reduce the frequency of remittance of source deductions for the smallest new employers, by allowing eligible employers to immediately remit on a quarterly basis. Eligible employers will be new employers with withholdings of less than $1,000 for each month.
Quarterly Remitter Category for New Employers on the 2015 Budget
Employers are required to remit source deductions to the Government in respect of employees’ income tax, as well as the employer and employee portions of Canada Pension Plan contributions and Employment Insurance premiums (collectively, “withholdings”). These withholdings must be remitted on a...