Question

The organizations’ Controller has received a notice from the Canada Revenue Agency (CRA) advising that the organization will be changing from an Accelerated threshold 1 remitter to an Accelerated threshold 2 remitter effective with the first pay of the new year. The Controller has asked you to provide an explanation of why this change has occurred.

In addition, she wants to understand how this will impact the statutory remittance schedule. Using the Current Year calendar in the course material, provide specifics of when the remittances are due for the January and February bi-weekly payrolls starting with the first pay date of the new year which is Friday January 5th.

Answer 1

Answer:

The reason that she was prompted by the CRA that she should change from Accelerated edge 1 remitter to an Accelerated limit 2 remitter is on the grounds that the worker's compensation continuous of Acceleratd edge 2 remitter depends on every other week not semi-month to month

There are two classes of quickened remitters:

Limit 1 : Employers with two-year AMWA of $25,000 – $99,999.99

Settlements/installments for Threshold 1 remitters are expected the 25th day of that month for finance handled in the initial 15 days of the month.

For finance prepared after the sixteenth day of the month, settlements/installments are expected by the tenth day of the next month.

Limit 2 : Employers with a two-year AMWA more noteworthy than $100,000

Settlements/installments for Threshold 2 remitters are expected no later than the third working day (not including Saturdays, Sundays, or open occasions) after the first seventh, eighth fourteenth, fifteenth 21st and 22nd-a day ago of the month.

At the end of the day, no later than the third business day after the week in which the finance was prepared. Limit 2 remitters are additionally required to make settlements/installments through a money related foundation something like one entire day before the due date with the end goal to counteract fines.

We need to get your reasonings from your Canadian monetary foundation by the third working day after the finish of the accompanying time frames:

• the first through the seventh day of the month;
• the eighth through the fourteenth day of the month;
• the fifteenth through the 21st day of the month;
• the 22nd through the most recent day of the month.

Changes for Threshold 2 remitters

As of February 26, 2008, for settlements due on or after that date, we will consider all installments made to the CRA no less than one entire day before the due date to have been made at a budgetary establishment and a punishment won't be charged.

Installments made on the due date yet not at a monetary establishment, are liable to a punishment of 3% of the sum due.