Each year, the CRA provides a list of commonly requested audit adjustments to an employer’s payroll as a result of wages and benefits not being correctly reported by the employer. Here’s the CRA’s latest list, just in time for tax season.
#1 Unreported payments for services to an independent worker (T4A) – Employers are not reporting payments for services to sub-contractors on the prescribed T4A form.
#2 Automobile standby and operating expense– Employees are not maintaining proper logbooks to separate personal and business driving so employers are not calculating the benefit correctly. Incorrect perception that if a vehicle doesn’t meet the definition of an “automobile” there is no benefit to be reported.