Dear Clients,
Happy New Year!
I hope this message finds you and your family well. As we step into 2025, I want to take a moment to thank you for your trust and partnership over the past year. Wishing you and your loved ones a year filled with love, joy, happiness, and prosperity. Let’s continue to strengthen and grow our business relationships in the year ahead!
1. Payroll Deduction Reminder
If you have payroll, this is an important reminder that all payroll deductions for the 2024 year must be paid by January 15, 2025.
💡 Note: The number one audit trigger for a CRA payroll audit is late payment of payroll deductions. Please make timely payments to avoid any issues.
2. Automobile Mileage and Benefits Reporting
For clients with vehicles registered under a company name (either owned or leased):
- Please provide us with the total mileage for January – December 2024 and the percentage of business use for the vehicle.
- This information is crucial for accurately calculating automobile benefits and ensuring proper payroll deductions before January 15, 2025.
💡 For more information on automobile benefits and how they are calculated, please visit the https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances/automobile/automobile-motor-vehicle-benefits.html
As a reminder, if you used your own vehicle for business purposes the following rates are applicable per km reimbursement:
- CRA’s 2024 automobile allowance rates for all provinces:
- 70¢ per kilometre for the first 5,000km driven
- 64¢ per kilometre after that
- The Northwest Territories, Yukon, and Nunavut get an additional 4¢ per kilometre:
- 74¢ per kilometre for the first 5,000km driven
- 68¢ per kilometre after that
3. T4 Filing Preparations
We’re getting ready for T4 filings! Keep an eye on your inbox—during the third week of January, we’ll be sending a detailed email outlining what we’ll need from you to complete this process smoothly.
4. New Requirement: Ontario Annual Returns
A quick reminder for Ontario corporations:
As of October 19, 2021, Ontario corporations must file their Annual Returns directly through the Ontario Business Registry (OBR). The CRA no longer accepts these filings on behalf of the Ontario Ministry of Public and Business Service Delivery.
Key Points:
- Filing Deadline: Within six months after the end of your corporation’s fiscal year.
- Filing Process:
- Log into your My Ontario Account.
- Access your corporation’s profile.
- Select “Make Changes” and choose the “File an Annual Return” option.
- Required Information:
- Corporate name and Ontario Corporation Number (OCN)
- Registered office address
- Names and addresses of directors
- Primary business activity code (NAICS)
- Fees: There is no statutory fee for filing through the OBR.
Penalties for Non-Compliance: Missing the filing deadline could result in penalties or even dissolution of your corporation.
For more details, visit the Ontario Business Registry.
If you need assistance with filing, we’re here to help!
Simply have your corporate key ready and reach out to Julia for guidance.
Thank you for taking the time to review these important updates. As always, I’m here to support you with your bookkeeping, tax preparation, and corporate compliance needs.
Wishing you a fantastic start to the new year!
We are happy to help with any questions you might have, as well as your accounting, tax and payroll needs.
Piligrim Accounting Inc. – (416) 514-1741 or info@piligrim-accounting.com
