Paying installments on taxes can seem like a complicated task. People are often unsure of how much they have to pay or when they have to pay. Understanding the nuances of tax installments will keep your business prepared and on top of payments.
This article will touch on some of the basics of paying tax installments and why an accountant can alleviate headaches and challenges.
Who is Required to Pay Installments?
According to the CRA, “You may have to pay tax by installments if your income does not have enough tax withheld or if you are self-employed, have rental or investment income, certain pension payments, or have income from more than one job.” According to the CRA, individuals falling under any of those classifications must pay tax installments. Keep in mind that there are additional factors that will impact your payments, including:
- Province or territory of residence
- Net tax owing
- The main source of income
- The number of income sources
Reading through the CRA’s website and guides is the best way to find answers that relate to your taxes.
In most cases, the government will inform you if you have to pay installments on your taxes. This will be done with an installment reminder. These forms are sent twice a year and can also be viewed online using a CRA account.
An Accountant Makes Taxes Easier
Understanding and filing taxes is complicated. That is why an accountant is often suggested for small business owners to large corporations. Hiring an accountant like NaickerCPA to take the burden off your shoulders.
We specialize in taxes, accounting, and financial services. Our bookkeeping and tax preparation services help businesses build value and overcome tax challenges. We serve clients in Burnaby, New Westminster, and Coquitlam.
If you have any questions about this article or business taxes, in general, or you want to make an appointment with an accounting professional at Naicker & Associates, please contact us at (604) 469-9369. We are based in Port Moody, BC.