Payroll – Common Canada Revenue Agency (CRA) Audit Adjustments

March 13, 2017 Published by
Post Categories: Advice For You

The listing below highlights the common adjustments after a CRA payroll audit.

  • Employers are not completing Form T4A concerning payments for services to independent contractors.
  • Employers are not properly calculating the automobile standby charge and operating expense benefit on employer owned vehicles.
  • Employers are paying flat rate vehicle allowances but not reporting them as a taxable benefit.
  • Bonuses, commissions and cash payments are not being reported as taxable income.
  • Payments for personal and living expenses of an employee or shareholder are not being reported.
  • Employers are treating individuals as sub-contractors when they are actually employees.
  • Shareholder benefits are not being reported.
  • Payments for parking are not reported correctly as a taxable benefit.
  • Neglecting to report a taxable benefit when stock options are exercised.
  • Taxable benefits relating to free or subsidized housing are not included as taxable income.