As an employer in Canada, the Canada Revenue Agency (CRA) requires that you remit (file) payroll taxes accurately and on time. In this post, we'll outline the types of payroll deductions you need to make, along with which kind of remittance schedule you’ll need to follow. As advocates of simple, fast, friendly payroll, we’ll do our best to try to make this as painless as possible.
Who Wrote the Book on Payroll Remittances (Source Deductions)?
That would be the CRA. The definitive guide is called T4001 Employers' Guide — Payroll Deductions and Remittances and is available in HTML or as a PDF. On the first read through, it’s kind of like putting together Swedish furniture. But, don’t worry, our job as payroll experts is to help you get your payroll remittances (source deductions) completed correctly and on-time in order to keep you and the government happy.
Once your business is GST registered you are required to file your GST monthly, quarterly or annually.
What is GST?
The goods and services tax throughout Canada, or the GST, is 5 percent. The general provincial sales tax, or PST, in British Columbia, is 7 percent, with some items taxed at a higher PST rate.
The GST return is a total of GST collected and ITCs (GST paid)