Payroll – Common Canada Revenue Agency (CRA) Audit Adjustments
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.
For more information regarding tax accounting, auditing and tax services, contact the professional accounting team at Hogg, Shain & Scheck.