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Outsourcing Services for Canada

Outsourcing services refer to the practice of hiring external companies or individuals to perform tasks or services that would otherwise be handled by

in-house staff. This can include functions such as customer service, IT support, accounting, and many more

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Understanding the Basics of the Canadian Tax System

In the realm of taxation, Canada operates under a two-tier system that encompasses:

Value Added Tax(VAT)

Referred to as Goods and Services Tax (GST), VAT is administered by the federal government. It is applied to various goods and services.

Provincial Sales Tax(PST)

PST, on the other hand, is imposed by provincial governments. The rates of provincial sales tax can differ from one province to another and may be calculated based on the value of goods and services either before or after the federal tax assessment.

Typically, the seller of goods and services is responsible for remitting both federal and provincial taxes to the relevant tax authorities. However, it is also acceptable for the seller to remit only the federal tax portion, while the purchaser assumes the responsibility of remitting the provincial tax, which is commonly referred to as a self-assessment tax.

In cases where individuals reside outside of Quebec, they are required to file a single tax return that encompasses both provincial and federal taxes. Conversely, individuals residing in Quebec must file two separate returns—one for federal taxes and another for provincial taxes.

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It is essential to bear in mind that the personal income tax structure in Canada is progressive. This means that the tax rate escalates with an individual's income level. Moreover, both federal and provincial governments offer a multitude of tax credits and deductions to assist individuals in minimizing their overall tax liabilities.

When it comes to filing personal income tax returns, Canadians have the option of utilizing traditional paper forms or embracing the convenience of electronic filing through various methods, such as dedicated tax preparation software, professional tax services, or the Canada Revenue Agency's (CRA) online platforms. Following the submission of your return, the CRA will assess your tax liability and issue a Notice of Assessment, which provides a comprehensive breakdown of the amount owed or any eligible refund.

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File a return for 2022 if

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Who the Canada Revenue Agency (CRA) is

The Canada Revenue Agency (CRA) is a government agency responsible for collecting taxes and administering various benefits and credits

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Get a Social Insurance Number (SIN)

A SIN is a 9-digit number that is personal, confidential, and unique to you.

You need a SIN to:

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Go to Service Canada to apply  for a SIN

What to do if you can't get a SIN

If Service Canada is unable to give you a permanent or temporary SIN, the CRA may give you a temporary tax number (TTN) you may use to get benefits and credit.

Who should file a tax return?

1. You live in Canada permanently

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2. You live in Canada temporarily

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3. You leave Canada temporarily or permanently?

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4. Newcomers to Canada includes

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The Canada Revenue Agency (CRA) considers you a newcomer to Canada for thr first year you are a resident of Canada.

You become a resident of Canada for income tax purposes when you have  enough residential ties in Canada. You usually establish residential ties on the day you arrive in Canada. 

CANADIAN Payroll System

What is a payroll account?

A payroll account is an account number assigned to either an employer, a trustee, or a payer of other amounts related to employment to identify themselves when dealing with a CRA.

This 15-character payroll account number contains the nine-digit business number (BN). The BN is a unique federal government numbering system that identifies your business and the various accounts you maintain. The payroll account number consists of:

A

Nine-digit BN

B

Two-letter code for the type of program (for a payroll program, the letters are "RP")

C

Four-digit reference number to identify each account in a program a business may have

Depending on the type of business you have, you may need to register other

types of programs accounts or open a separate payroll account. The nine-digit

business number will not change, but other letters or reference numbers will be

added to the BN. A company requires a GST/HST, an import/export and two payroll accounts. The account numbers would be:

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You may need to register for a payroll account if you are:

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Determine if you are an employer, a trustee or a payer of other amounts related to employment

Employer

   The CRA generally considers you to be an employer if you:

  • Pay salaries, wages (including advances), bonuses, vacation pay, or tips to your employees

  • Provide certain taxable benefits to your employees (for example, an automobile or allowances)

An individual is an employee if the worker and the payer have an employer-employee relationship. This relationship is referred to as employment under a contract of service.

Although a written contract might indicate that an individual is self-employed (and therefore working under a contract for services), the CRA cannot consider the individual as self-employed if there is evidence of an employer-employee relationship. The facts of the working relationship as a whole decide the employment status.

Trustee

Employment by a trustee in bankruptcy by other trustees

Payer of other amounts related to employment

A payer of other amounts can be an employer, a trustee, an estate executor, a liquidator, an administrator, or a corporate director who pays other types of income related to an employment. This income can include:

             Research grants

             Payments from a Registered disability 

             Wage-loss replacement plan payments if you were not required to withhold Canada Pension Plan (CPP)                   contributions and employment insurance (EI) premiums

             Death benefits

             Certain benefits paid to:

                 -Partnerships

                 -Shareholders

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What if you do not know the employment status of the worker?

If you or a person working for you is not sure of the worker's employment status (employee or self-employed), either one of you can request a CPP/EI ruling to determine the status and whether the employment is pensionable, insurable, or both. The ruling can also determine if the earnings are pensionable, insurable, or both.

Learn more:

CPP/EI Explained

These articles are intended to

make workers and employers

more aware of matters relating to the CPP and EI by providing them with information that is

accessible and easy to

understand.

How to get a CPP/EI ruling

Payer can ask for a ruling if theyare not sure whether they should deduct CPP contributions or EI premiums from a worker’s pay.

Time limit to ask for a ruling

A payer or worker can ask for a ruling by June 29 of the year after the year the question relates to. For example, if the employment took place in 2020, you can ask for a ruling no later than June 29, 2021.

On the other hand, Service Canada and the CRA can ask for a ruling at any time for the administration of their programs.

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Image by Kelly Sikkema

Canadian

Due Dates  

Due Dates for filing of return

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Note: The return for Deceased person shall be at a varied due date wrt guide T4011.

It is always recommended to consult with a qualifed tax professional or refer to the Canada Revenue Agency (CRA) website for the most up-to-date information.

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Exception to the due date

When a due date falls on a Saturday, Sunday, or public holiday recognized by the CRA, your return

is considered on time if the CRA receives it, or if it is postmarked, on or before the next business day.

Your payment is considered on time if it is received on the first business day after the due date.

For more information, see Due dates and payment dates.

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Bookkeeping Services 

Onboarding at a cost of 26 CAD. Our bookkeeping services include bank reconciliation, credit card reconciliation, and monthly financial statements for the client.

For bookkeeping services, we offer monthly fixed pricing based on the monthly number of transactions. The pricing is as follows:

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Income Tax Preparation 

Services 

Pricing for Income Tax preparation is tabulated below wrt types of returns

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Pricing based on turnover

for HST Filling

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Payroll Preparation Services

The details pricing structure for the payroll is tabulated as below

The details pricing structure for the payroll is tabulated as below

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The Payroll Pricing should be taken into concern wrt the notes mentioned as under:

1. Worked on software like Ceredian, Easy Pay, Can pay.

2. The payroll set-up fee - 200 CAD considering payroll procedure at client end. The same would vary wrt the bulk work provided for.

3. These quotes do not include the cost and subscription of software and other PRICE (IN CAD) ayroll related expenses.

4. The ROE fees in excluded in the above give pricing and could range from 13 CAD up till 70 CAD per employee as the case arises

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Stay connected for more information

Our Founders

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We have  robust team to ensure smooth transition of all kinds of projects from their initiation to completion.

Moreover, at BnC Global, we have incorporated best practices for accounting & tax preparation

assuring information Security and  Confidentiality Assurance to all our clients.

Our Mission:

To enable organizations improve their

fundamental performance, reinvent their

business and lead their people through

transformational change

Our Vision:

Our Vision is to solve your problems with our innovative solutions as well as help you implement the solutions and train the people

If you would like to outsource to BnC Global, please fill in our inquiry form. Our sales executives will get it touch with you immediately. Even if you are not yet ready to venture into outsourcing, you are always welcome to get in touch with us to find out more about outsourcing to India.

Gain a first-hand understanding on how outsourcing can help you by signing up for one of BnC Global Free Trial Programs.

Give us an opportunity to assist you by filling the  questionnaire

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