It seems every year tax season has a way of sneaking up on us. You scramble to reconcile your books and run your business at the same time. Long nights. Panic. Frustration. Where is that receipt from that one lunch in January last year?
But this year will be different. This year, you’ll be organized. We’ll show you how.
The key to staying on top of it all is to start now.
That’s why we’ve created the 2020 Small Business Tax Calendar. Use this to help minimize your risk of accruing unnecessary penalties and interest costs.
What’s Your Process?
Proper tax planning requires you to submit tax documents on a variety of due dates.
Start this process by checking with your CPA to confirm the due dates for the upcoming tax year. Create a system to remind you when these dates are coming up, and include enough lead-time to file the tax documents in a timely manner. You can input new alerts into your calendar software, or write the dates in your planner.
Sole Proprietorship and Partnerships:
If you are a small business (either solo or a partnership) such as, a local grocery store, a local clothes store, an artist, freelancer, IT consultant, self employed etc. these dates are for you!
Your year end is the Calendar year – December 31
Income Tax for the previous year must be filed by April 30th
If income tax is owing – taxes are payable by April 30th
If you believe no taxes to be owing and Self Employed – Filing is due by June 15
Corporations:
For a corporation – you get to choose your year end when you register your business with CRA
Your tax deadline is 6 months after your year end. Example : If your year end is April 30th, then you must submit your T2 income tax return by October 30th.
Other Important Dates:
T4’s and T4A’s must be distributed by February 28th
Estimated tax payments – Self-employed individuals and most businesses must make quarterly tax payments. These payments ensure that the individual or business pays a large percentage of the estimated tax liability during the year, rather than in one payment when the tax return is filed.
Make sure you factor in these quarterly payments in your calendar.
Invest the time that’s necessary to calculate your taxes, make payments, and file the returns on time. Proper planning can help you avoid interest costs and penalties down the road. Ask us to help you with this process.