Tax error? What to do when you have to refile - Small businessess from 1 to 80 employees outsource your payroll management to us and let us worry about your payroll processing.
RSS Follow Become a Fan

Delivered by FeedBurner

Recent Posts

Tax changes to expect when you’re expecting
2016 Tax Tips for 2015 Filing Year
From Proprietorship to Corporation - When is the Best Time to Incorporate?
Tax Specialists Brief your Clients About CRA Fraud And E-Mail Scams
Bank of Canada cuts rates again

Most Popular Posts

Help your teenager build credit responsibly
Being an Executor of an Estate
Student Line of Credit
Principal Residence Exemption


aliko nutrition store- isotonix
aliko payroll services
canada revenue news and videos
canadian news
Cross border Tax
Disability awareness and Benefits for disabled
estate planning
Home Car Insurance
Income Splitting Strategies in Retirement
kids and money -set your children up for financial success
life insurance
on line safety tips
online safety tips
Real Estate - Investments / Retirement
Retirement planning
Save your money
small business planning
Tax Information for Students
tax news
tax planning
Tech news


January 2016
July 2015
May 2015
April 2015
February 2015
December 2014
November 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013

powered by


Tax error? What to do when you have to refile

Tax error? What to do when you have to refile - error? What to do when you have to refile
 Make the most of tax time and get the biggest return possible with these often missed credits and deductions.
Taxes aren’t fun to deal with at the best of times, but you may find yourself even more irked if you get a T4 amendment in the mail.
The good news is that it’s not uncommon to receive such a notice.
“Amended T4s are generally sent out to correct errors,” says James Bell, director of Tax Solutions Canada, who worked at the Canada Revenue Agency for 22 years before starting his company in 2013. Those errors are on behalf of the employer, which means there’s nothing you can do to prevent getting one.
“T4s get amended because of an oversight on the part of the employer,” Bell says. “It’s a routine occurrence,” he adds. “It happens all the time.”
Reasons a “Statement of Remuneration Paid” could be amended are wide-ranging; examples include improper classification of an amount (such as the under- or over-reporting of income), improper calculation of benefits to employees who participate in a stock-purchase plan, or the lack of inclusion of other taxable benefits or an incorrect tally of those benefits.
While amendments are common, they can still make people nervous.
“Amendments are straightforward, and it’s very routine for people to receive these things, but it can cause a lot of confusion and upset and misunderstanding,” Bell says. “Most people are puzzled about why they would get an amended T4.”
Caroline Battista, a senior tax analyst at H&R Block, says that it helps to understand what your taxable benefits are should you ever be faced with an amendment.
“I would hazard a guess that at least 50 per cent of the time if you ask people what their taxable benefits are, they don’t know,” Battista says. “Know what your taxable benefits are, especially when you’re getting a new job.”
Here are some examples: let’s say you win a $10,000 trip or NHL playoff tickets through work. “You’re still paying tax on the value of that trip or those tickets,” Battista says.
The parking spot that’s you get as a perk? You have to pay tax on the value of that, too.  
Battista notes that if you’ve already filed your taxes but then receive an amended T4, you need to submit an adjustment with that new slip. She says it’s easy to do electronically via the CRA’s My Account. Those forms can be mailed in too.
If you don’t understand or disagree with the amendment, Bell suggests talking to your office’s payroll or HR department first.
If you still don’t agree with the amendment, then you can file a notice of objection to dispute it.
“The CRA has a formal dispute mechanism in place for you,” Bell says. “It’s important to make sure that, if there is a dispute and you don’t understand it or disagree with what employer has done, you protect yourself by filing that notice of objection. It’s the only formal way to protect your rights, and that’s what you should do. You do have a formal legislative process to go through to make your case with the CRA.”
Whatever you do, if you receive an amendment, make sure you get it sorted out.
"There’s no need to panic at all,” Bell says. “However, it’s something that shouldn’t be ignored; they really do have to deal with it.”
The sooner the better: “Deal with it right away,” Battista says. “An amendment doesn’t mean it’s been done or that the CRA has refiled for you. Don’t just think the CRA will process it; deal with it because you will be charged interest from the time you get that slip. Once you get an amended slip it’s considered your responsibility.”

0 Comments to Tax error? What to do when you have to refile:

Comments RSS

Add a Comment

Your Name:
Email Address: (Required)
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment