Whether it's a major project at work, a school assignment or making a utility payment, just about everything has a deadline.
Perhaps nowhere are deadlines more apparent than with taxes, both for individuals and small business owners.
While most Canadians know that income tax deadline day is in April, there are many other target dates that small business owners should be sure to mark on their calendars.
The following are some tax situations that companies often experience, along with information on when they'll need to make a payment to the government.
What Happens When Tax Deadline is a Saturday?
Though the individual tax deadline in Canada is usually end of April, the actual day of the week differs from year to year, as sometimes it's on Tuesday while others it's on a Saturday or Sunday.
In those cases where the deadline is on a weekend, payments are considered on time if the government receives it the next business day.
For example, if the deadline is on a Saturday, the government will accept the money it's owed on Monday without penalty. In fact, even if the government doesn't receive it the next business day, it's not late provided it was postmarked by that time.
Filing Deadline for Self-Employed Individuals
As a small business owner you and your spouse have until June 15 each year to filing your individual tax returns.
However, although you have extra time to file, if you have taxes owing it must be paid by the April 30 deadline to avoid any interest and penalties.
The late penalty is usually 5% of whatever balance is owed, plus 1% of the balance for each full month that the return is late. In short, the longer it takes to pay, the more it will cost.
Incorporated Businesses Tax Deadline
Each business designation has its pluses and minuses and one of the requirements of a business that is a corporation, rather than a sole proprietorship or partnership, is the need to pay corporate income taxes.
If a corporation has a balance that it still needs to pay, business owners have until 2 months after the end of their fiscal tax year to pay it off.
There are some exceptions to this rule. Canadian-controlled private corporations with annual business income less than $500,000 may have up to 3 months rather than 2, provided they meet the eligibility criteria.
For additional deadlines that are important to be aware of, speak with a FBC tax professional.