Payroll and Payroll Deadlines
Maintaining Your Records
When you hire an employee you must print off a Federal TD1 and the Provincial TD1 for your employee to fill out. You must retain these documents for your files.
Once the forms are filled out you should have the following employee information:
- The date they began working for you
- their full legal name
- current address
- social insurance number
- any amounts of additional income tax they would like you to retain from their income
You will need this information for creating and submitting T4′s and T4 Summaries as well as Record of Employment forms (ROE’s) when your employee leaves. At the end of each calendar year you will be required to provide an annual report (T4) to your employee as well as a T4 Summary Report to CRA. Any additional money owing for the previous calendar year will be required to be submitted at this time or will be subject to additional interest and penalties.
Employees must be provided with a paystub that provides a breakdown of their wages and withholding for each pay period.
Each month on the 15 following the month you have paid your people, you will be required to submit the amounts that you have retained from your employees as well as the employer portion designated your province or territory. You will receive pre-printed forms in the mail each month that must be used. Payments can be made at your bank or by mailing in the forms and the payment.
Bank and Credit Card Statements – Edmonton
It’s a great idea to open every bank and credit card statement when they arrive in the mail.
Your first job should be to ensure that you recognize all of the purchases that show up. Most banks only allow one month to address any discrepancies, and if you are prone to poor penmanship there is a greater chance of there being errors based on interpretation.
It is very helpful to the bookkeeping process if you separate your receipts and put the appropriate receipts with the appropriate statements. When you save time for your bookkeeper, you also save yourself some money.
A primary function of the bookkeeping process is to ensure that the company bank account and credit card accounts are reconciled regularly.
Setting up a new accounting software?
Who will completing your data entry?
What accessibility do you want them to have?
What information do you want or need to track?
How do you anticipate your company to grow?
If you are looking after your data entry then you have no concerns. On the other hand, if you have administration staff who will be looking after this function you will want to consider exactly what information you want them to know. They will not need to know your bank balances and exactly how well (or not well) the company is doing.
Account reconciliations can be time consuming, but I guarantee that it is a lot easier if you complete them frequently. The point of a reconciliation is matching information from 2 different sources. The bank knows how much your service charges are and whether or not all of cheques you have deposited have cleared. You on the other hand know what cheques you have written throughout the month that have not been deposited by the people they were written to. It is balancing the information from both sources so that you have the same figures clearing for a period.