Not for me, but worried for you. I’m worried that you have forgotten to prepare the T4 for your employee, or nanny, and that you will not be able to submit the T4 with the T4 summary to the Canada Revenue Agency (CRA) by the February 28th deadline.
If you have not completed the T4 or T4 summary yet and are weighing your options, I have some information you need to consider.
First, provided you have been making regular remittances to the CRA, you already have the information you need to submit to the CRA.
Secondly, if you have been making regular remittances the CRA will have sent you a code which allows you to complete the T4 and T4 summary online and which allows you to file online.
Third, if you let the deadline slide by, you are going to pay a penalty.
Say what you will about the Canada Revenue Agency, but they ask and they listen. If you have had the opportunity to attend a CRA information session (or be on a panel as I have) you know that the CRA wants to know what bothers people and how they can improve things. They really do.
In the good old days, when I worked at the CRA, late filing of a T4 was a minimum $100 penalty (plus interest) and late filing of a T4 summary was a minimum $400 penalty to a maximum of $2500.
The CRA has instituted a new administrative policy that applies to certain information returns to ensure that late-filing penalties are charged in a manner that is both fair and reasonable for small businesses. The penalty is the greater of $100 or a penalty determined as follows:
|Number of information
|Penalty (per day)||Maximum penalty
|1 – 5||Not applicable||$100 flat penalty|
|6 – 10||$5||$500|
|11 – 50||$10||$1,000|
|51 – 500||$15||$1,500|
|501 – 2,500||$25||$2,500|
|2,501 – 10,000||$50||$5,000|
|10,001 or more||$75||$7,500|
Of course, if you have to get it done by the 28th and you are close on figures, you can always send them your best estimation and amend the return at a later date. You won’t get hit with the late filing penalties unless your figures are WAY off from the real figures and the CRA feels you sent these numbers to in some way circumvent the rules. Interest will continue to apply.
Hope you filed on time.