Staying on top of accounting deadlines is crucial for Canadian small businesses. Missing important dates can lead to penalties, interest charges, or compliance issues with the Canada Revenue Agency (CRA). To help you avoid these pitfalls, here’s a guide to the essential accounting deadlines for Canadian businesses, covering everything from tax filings to payroll remittances.
1. Personal Income Tax Return (T1) - April 30
For sole proprietors and unincorporated business owners in Canada, the personal income tax return (T1) must include business income. The T1 return and any taxes owed are due by April 30. While self-employed individuals and their spouses or common-law partners have until June 15to file, any taxes owing are still due by April 30.
Tip: File by April 30 if you anticipate owing taxes, as interest begins accruing on any unpaid balance after this date.
2. Corporate Income Tax Return (T2) - Six Months After Fiscal Year-End
Incorporated Canadian businesses must file a T2 Corporate Income Tax Return within six months of their fiscal year-end. For example, if your fiscal year-end is December 31, the T2 return is due by June 30 of the following year.
Payment Deadlines:
Balance Owing: Generally due two months after fiscal year-end. However, Canadian-controlled private corporations (CCPCs) with active business income may have up to three months to pay without incurring interest charges.
Tip: Plan to pay any taxes owing within the two- or three-month deadline to avoid interest charges.
3. GST/HST Filing and Payment Deadlines
For Canadian businesses, the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) must be collected and remitted based on your reporting period:
Annual Filers: GST/HST returns are due three months after fiscal year-end. For example, if your year-end is December 31, your return is due by March 31.
Quarterly Filers: Due one month after each quarter ends, such as April 30 for Q1.
Monthly Filers: Due one month after the month-end.
Tip: If your annual sales are over $1.5 million, you may be required to file quarterly or monthly. Confirm your reporting frequency to meet GST/HST filing deadlines accurately.
4. Payroll Remittances
If you have employees, you must remit payroll deductions (income tax, CPP, EI) to the CRA. Remittance schedules depend on the size of your payroll:
Regular Remitters: Monthly remittances due by the 15th of the following month.
Quarterly Remitters: Due by the 15th of the month following each quarter’s end.
Accelerated Remitters: Remit twice monthly, with deadlines within three business days after each half of the month (1st–15th and 16th–end of month).
Tip: Set reminders for payroll remittance deadlines to avoid penalties and late fees.
5. T4 Slips and Summary - Last Day of February
For Canadian businesses with employees, T4 slips must be issued, and a T4 Summary must be filed with the CRA by the last day of Februaryeach year. This filing details employee income, CPP, EI, and other withholdings for the prior calendar year.
Tip: Ensure T4s are accurate and issued by the deadline. Errors can lead to penalties and delays in employees’ tax filings.
6. T5 Slips and Summary - Last Day of February
If your business issued interest, dividends, or investment income to shareholders or recipients, you must file T5 slips and a T5 Summary with the CRA by the last day of February. This filing is essential for businesses issuing dividends to stakeholders.
Tip: Track any dividends or interest paid throughout the year to simplify T5 preparation.
7. WSIB Reporting (Ontario) - Quarterly or Annually
For businesses operating in Ontario and participating in the Workplace Safety and Insurance Board (WSIB) program, premium reporting is required based on payroll size:
Quarterly Reporting: Remit payments by the end of the month following each quarter.
Annual Reporting: For smaller businesses, the deadline is March 31 for the prior year.
Tip: Confirm your WSIB reporting frequency and mark deadlines on your calendar to avoid late fees.
8. Instalment Payments for Income Tax (Individuals and Corporations)
If your business consistently owes taxes of $3,000 or more, you may need to make quarterly instalment payments. Deadlines are March 15, June 15, September 15, and December 15. The CRA will notify you if instalments are required, but proactively budgeting for these payments can prevent cash flow issues.
Tip: Schedule instalments to avoid interest and late fees. If your income is seasonal, consider setting aside funds in advance.
9. Provincial Tax Filing Deadlines
Certain provinces may have additional tax requirements, like Provincial Sales Tax (PST) or local levies. Deadlines for these filings depend on the province and reporting frequency (monthly, quarterly, or annually). Contact your provincial tax authority to confirm deadlines for your specific region.
Tip: If operating in multiple provinces, keep a checklist of deadlines for each location to ensure compliance.
Additional Tips for Staying Organized
Set Calendar Reminders: Use digital calendars or accounting software to set up automatic reminders for key deadlines.
Utilize Accounting Software: Programs like QuickBooks, Xero, or Wave can help manage tax filings and keep records up to date.
Work with an Accountant: A tax professional can help you track deadlines, stay compliant, and avoid costly penalties.
Meeting CRA Deadlines for Canadian Businesses
Meeting accounting deadlines is essential for Canadian small businesses to avoid penalties and maintain good standing with the CRA. By staying organized, setting reminders, and leveraging accounting tools, you can ensure compliance and focus on business growth.
Need help staying on top of accounting deadlines? Contact LCT Accounting Services for guidance on organizing your tax schedule and ensuring accurate, on-time filings. With professional support, you can meet every accounting deadline confidently and concentrate on your business’s success.
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