You used to be able to, not sure if that's possible anymore as too many employees complained about having to pay tax in April.Quote:
Originally Posted by rage2
You used to be able to, not sure if that's possible anymore as too many employees complained about having to pay tax in April.Quote:
Originally Posted by rage2
Quote:
Originally Posted by 16hypen3sp
Per what I had written above, it's due to how the company's payroll is structured.Quote:
Originally Posted by Swank
The taxes deducted is only on the base salary + premiums.
The company does a RRSP matching, and share bonuses. They don't withhold the tax on those on the payroll end because they *assume* that you are putting it all into RRSP.
They are good at withholding half your cash bonus though.
Don't ignore them. You will end up having to pay interest on the missed payments.
No withholding on RRSP because it's your RRSP, and shares don't get taxed until you sell them.Quote:
Originally Posted by jwslam
Only if you actually owe at the end of the year. Then it's interest + penalties.Quote:
Originally Posted by Lex350
It's the employer portion of the shares that vest to the employee on Jan 1 every year that's the problem. (Stock Savings Plan) Even if you don't sell them you are liable for tax. I always assume at least 35% of what vests to me is going straight to taxes payable in April. Unless of course you put it into your RRSP which diminishes taxes payable. But yah know, big lump sum of money mixed with motorcycle dealership = money to motorcycle dealer. hahahaha jk, I don't do that....Quote:
Originally Posted by jwslam
So putting all the CRA stupidity aside, the bottom line here to avoid any financial pain is to have taxes owed in April be under $0.Quote:
Originally Posted by rage2
I am quite sure you can't have it the other way. Employer is required to remit for employee. AFAIK - could be wrongQuote:
Originally Posted by rage2
you can't ask your employer to deduct 0. it can be adjusted downwards based on expected credits if you submit a TD1, but to get it down to 0 is going to be almost impossible.Quote:
Originally Posted by pf0sh0
https://www.canada.ca/content/dam/cr...d1/td1-19e.pdf
I actually did this when i got my full time job and had a bunch of education credits. Worked out pretty good, but I got bit in the ass though because my employer kept this on file indefinitely (i thought it was only valid for one year), so when my credits ran out i had a big tax bill because employer was still considering my credits.
Yea, all while deductions are equal through the year. You can't have 0 deduction and a full tax owing deduction for December for example, that will still trigger the payment schedule reminders AFAIK.Quote:
Originally Posted by 16hypen3sp
The employer is providing for example $10,000 worth of shares.Quote:
Originally Posted by suntan
This is $10,000 of income on your T4, which in turn you'd have to sell to have cash to pay the income taxes on it.
It's pretty typical to see the share prices tank during tax time since so many employee shareholders are selling to cover.
My accountant confirmed what rage said... shoot for $0 owing next year and all is well. I plan on contributing more to my RRSP to do this.
CRA is also giving the gears to my brother over a volunteer fire fighting tax credit. Bastards!
It would be a taxable benefit if they just gave you shares.Quote:
Originally Posted by jwslam
It was a DB pension. He was divorced and it went to me and my brother.Quote:
Originally Posted by ThePenIsMightier
Got another one. They want $2k upfront for 2020 taxes.
As for the 2019 tax year, I have lined myself up for a refund of ~$4k with RRSP deductions. Few more thousand in deductions with Uber (Sole prop). Should get a decent refund this year according to all the calculators on the subject.
Update:
Got just a hair under $6k in income tax refund. CRA can piss off.