![]() The late filing penalty continues to accrue interest until paid in full. The CRA issues late filing penalties based on the number of T5018 slips filed late and the number of days late. Payments to independent contractors and subcontractors can be reported on either a calendar-year or fiscal-year basis, and are due 6 months after the reporting period.Ī T5018 slip must be filed for any payment over $500. One T5018 slip is filed for each independent contractor and a summary slip is also reported to the CRA.įailing to file a T5018 will result in penalties, which can get costly. If you’re an individual, partnership, trust, or corporation and more than 50% of the business’ income comes from construction, and you make payments to subcontractors for construction services, you need to report the amount paid or credited. It also takes time for businesses to understand the tax essentials of self-employed contractors.Ī good example is understanding what needs to get reported on the T5018 information return. It can take a lot of time for self-employed workers and independent contractors to navigate Canada’s complex tax legislation. If you unsure of what to do, or when you need to complete certain filings, speak to a professional tax provider. Keeping up with your tax obligations can be challenging. To set up a business number, a GST/HST account, and any other account you may need (for example, a payroll deduction account), you can visit the CRA’s online Business Registration at your convenience. Incorporated? You may already have a business number and a corporate income tax account. This will act as your business ID for all CRA dealings. Before you register for a GST/HST account, you will first need to obtain a business number. If you do not have a GST number yet, it’s easy to obtain one. However, you may choose take advantage of optional reporting periods as well. When you register for the GST/HST, the CRA will usually assign an annual reporting period. You then need to file GST/HST returns to the CRA. If you earn more than $30,000 a year (or four consecutive quarters or a single quarter) you also need to charge and collect GST/HST. If you’re in farming or fishing, you’ll have to fill out industry specific versions of this form (T2042 or T2121).
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