GST (Goods and Services Tax)/ PST (Provincial Sales Tax) and HST (Harmonized Sales Tax) refer to the tax that has to be paid on certain goods and services. GST is a 5% tax applied to most taxable items, except basic groceries, prescription drugs, and healthcare services, in all provinces and territories in Canada, except for some provinces that collect extra tax called PST on certain goods and services. GST and PST, when collected together called HST, which has to be paid to the Government of Canada. So, GST (after deducting ITCs) and HST have to be paid to CRA, whereas PST should pay to the province where the goods and services are consumed.
Wages in Canada can be paid in some ways. If you work for a company or a business owner on an hourly or salary basis regardless of payment frequency (Weekly, Bi-weekly, Semi-monthly or Monthly) you’ll receive the pay stubs that show your gross wage, deductions and net pay. At the end of the year, you’ll receive your T4 which shows your annual income.
A self-employed individual usually works independently for others. The contractor does not have anyone overseeing or monitoring the job. The worker is usually responsible for the tax filing, but the owner of the business has to issue T4A at the end of the tax year.
What is an ROE? ROE is a form that employers will issue for employees exiting the company regardless of the term of exit, quit lay-off, etc. The ROE is the single most important document in the Employment Insurance (EI) program. If you want to receive EI benefits when you are out of work, you need to get ROE from your employer. When you are on EI until it’s exhausting (maximum of 45 weeks), you will have T4E for this period which shows in your personal tax return.
The Workers’ Compensation Board (WCB) of each province provides insurance benefits to workers who are injured on the job. The employers are responsible for the quarterly reporting and paying WCB premiums and the WCB will be paid to the injured employees.
As for all business owners, need to do the annual filing (renewal the registration), this service is being done as well as business registration. Here’s what you need to prepare before registering a business.
- Choose a name.
- Get a NUANS report
- Define the shareholder/s name and their share percentages
- Define your corporation’s address
- Elect a director
- Submit your application package
There are two ways how to register a business, simply going to the registry office or doing online. Maxpro Financials will accompany you at the registry office or do it online from the office. There’s no service charge for this service from our side.
