Working with your Corporation Part 3: Payroll & Year Ends

Here are some key details you need to know on payroll, year ends and corporate returns when you are working with your corporation:

Payroll remitting:

Payroll is typically remitted monthly, specifically on the 15^th of the following month.  Payroll remittances consist of Federal and Provincial taxes withheld from the employees, CPP – Employee and Employer portion, and EI – Employee and Employer Portion.  There are alternatives to payroll, so do inquire with us at Kustom Design.  If you do have payroll, never get behind as the penalty and interest can kill your business.

Corporate Year Ends: 

Corporations get to pick which month they’d like for their year end.  It is good to pick a month that works for the owner and the accountant and is best for deferring tax.  For example, if you own a business that requires inventory counts at year end, you would want the year end to be a month where you are not busy so you have time to do the inventory count and don’t lose important revenues. 

An example of deferring tax would be if your business makes most of its money in the summer, you’d want a year end that is just before the summer, so each year the taxes on the busy summer months aren’t paid until a whole year later (tax deferral).  Kustom Design can help you pick a beneficial Year End Date. 

Annual Returns (for Corporations):

In Alberta, we are required to file an annual return with the Provincial Government to let them know the Corporation is still active, who the current shareholders and directors are and the current address.  The cost is not a lot for this filing. However, if you do not file the annual return for your corporation, it can be dissolved which brings many negative consequences and costs.  Kustom Design can handle your Annual return filings each year, and it can be included in your package!