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Thread: I got the dreaded "Income Tax Instalment Payment Reminder" from CRA.

  1. #41
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    Quote Originally Posted by rage2 View Post
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    Yea, what I meant was if employers are allowed to adjust to zero deductions on the request of employees. I know you can request to have more deducted. Not sure if other way is allowed.
    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.

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    Quote Originally Posted by 16hypen3sp View Post
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    I pay taxes every two weeks like many other full time employed individuals.
    Quote Originally Posted by Swank View Post
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    But you've also been getting some big lump sum payments here and there (or maybe just one) every year for the past couple of years, haven't you? That's the income tax they want sooner than later so they can earn the interest on it.
    Per what I had written above, it's due to how the company's payroll is structured.

    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.

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    Don't ignore them. You will end up having to pay interest on the missed payments.
    "if you disagree with my views are cannot adequately my criticism then ignore my posts." - Nusc

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    Quote Originally Posted by jwslam View Post
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    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.
    No withholding on RRSP because it's your RRSP, and shares don't get taxed until you sell them.

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    Quote Originally Posted by Lex350 View Post
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    Don't ignore them. You will end up having to pay interest on the missed payments.
    Only if you actually owe at the end of the year. Then it's interest + penalties.
    Originally posted by SEANBANERJEE
    I have gone above and beyond what I should rightfully have to do to protect my good name

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    Quote Originally Posted by jwslam View Post
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    Per what I had written above, it's due to how the company's payroll is structured.

    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.
    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 rage2 View Post
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    Only if you actually owe at the end of the year. Then it's interest + penalties.
    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.
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    Quote Originally Posted by rage2 View Post
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    Yea, what I meant was if employers are allowed to adjust to zero deductions on the request of employees. I know you can request to have more deducted. Not sure if other way is allowed.
    I am quite sure you can't have it the other way. Employer is required to remit for employee. AFAIK - could be wrong

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    Quote Originally Posted by pf0sh0 View Post
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    I am quite sure you can't have it the other way. Employer is required to remit for employee. AFAIK - could be wrong
    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.
    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.

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    Quote Originally Posted by 16hypen3sp View Post
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    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.
    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.
    Originally posted by SEANBANERJEE
    I have gone above and beyond what I should rightfully have to do to protect my good name

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    Quote Originally Posted by suntan View Post
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    No withholding on RRSP because it's your RRSP, and shares don't get taxed until you sell them.
    The employer is providing for example $10,000 worth of shares.
    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.

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    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!
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    Quote Originally Posted by jwslam View Post
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    The employer is providing for example $10,000 worth of shares.
    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.
    It would be a taxable benefit if they just gave you shares.

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    Quote Originally Posted by ThePenIsMightier View Post
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    Inheritance in not taxable, so... WtF is going on, here?
    Oh wait. It wasn't a cash infusion? You inherited his pension? I thought only spouses could get that.
    It was a DB pension. He was divorced and it went to me and my brother.

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