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
Basics Of Canadian Tax System
Taxes in general
Canada has two primary types of taxes:
Value Added Tax(VAT)
Provincial Sales Tax(PST)
Value added tax (VAT), called a goods and services tax (GST).
This is assessed by the federal government.
Provincial sales tax (PST). This is assessed by provincial governments. Provincial sales tax rates can vary from province to province and can be based either on the value of goods and services prior to the federal tax assessment or based on the value including the federal tax assessment.
Generally, the seller of the goods and services remits both the
federal and province taxes to the tax authorities. However, it is
also acceptable for the seller to remit only the federal tax and
for the purchaser to remit the provincial tax
(called a self-assessment tax).
If you are living outside of Quebec you must file one tax
return which will include provincial and federal taxes.
If you are living in Quebec you will file two returns
separately for federal and provincial taxes.
It's important to note that personal income tax rates in Canada are progressive, meaning that the more income you
earn, the higher your tax rate will be. There are also federal and provincial tax credits and deductions available to
individuals to help reduce their overall tax burden.
To file your personal income tax return, you can use paper forms or file electronically using various methods, such as
through a tax preparation software, a tax professional, or the Canada Revenue Agency's (CRA) online services. Once
you file your return, the CRA will assess your tax liability and issue a Notice of Assessment, which will detail the
amount of tax owed or any refund due.
File a return for 2022 if
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
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:
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
2. You live in Canada temporarily
3. You leave Canada temporarily or permanently?
4. Newcomers to Canada includes
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.
Due Dates for filing of return
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.
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.
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:
Two-letter code for the type of program (for a payroll program, the letters are "RP")
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:
You may need to register for a payroll account if you are:
Determine if you are an employer, a trustee or a payer of other amounts related to employment
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.
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:
Other income such as:
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
Certain benefits paid to:
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.
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
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.
Stay connected for more information
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Moreover, at BnC Global, we have incorporated best practices for accounting & tax preparation
assuring information Security and Confidentiality Assurance to all our clients.
To enable organizations improve their
fundamental performance, reinvent their
business and lead their people through
We are committed to solve your problems with our innovative solutions as well as help you implement the solutions and train the people
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