Payroll – Common Canada Revenue Agency (CRA) Audit Adjustments
Common CRA Payroll 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.