How We Helped a Growing Professional Services Firm Simplify CRA Compliance and Avoid Late‑Filing Penalties
About the Client
- Business Type: Professional Consulting Firm
- Location: Toronto, Ontario
- Previous Setup: Payment records tracked in spreadsheets; no formal tax slip process
- Main Problems:
- Missed T-slip filing in the previous year
- Uncertainty around NR4 filing for non-resident contractors
- No consistent classification of payments (e.g. interest vs. service fees)
- High risk of CRA late penalties and administrative backlog
Client Goals
- File all required 2024 slips (T4A, T5, NR4) accurately and on time
- Avoid CRA late-filing penalties
- Ensure correct classification of all payments
- Implement a reliable and repeatable slip filing process
What We Did
Step 1: Data Review and Payment Classification
Nicole began by reviewing payment records for over 25 individuals and entities. Each payment was assessed to determine whether it belonged on a T4A (service fees), T5 (interest or dividends), or NR4 (non-resident compensation). We also checked for missing tax identification numbers and required country codes.
Step 2: Slip Preparation and CRA Filing
Using CRA-compliant software, David prepared all T-slips and summaries. We filed them electronically through the CRA’s Web Forms system and provided each recipient with their tax slip and an explanation summary.
Step 3: Process Setup and Staff Training
To help the client stay organized going forward, we created a tracking sheet for all annual slip data, set up a document repository for payment records, and trained their team on identifying reportable payments and maintaining proper documentation throughout the year.
Results
- All required tax slips filed correctly and on time
- Avoided all potential CRA late-filing penalties and notices
- Issued over 30 T-slips, including non-resident NR4s
- Established an organized, repeatable filing process
- Reduced internal administrative work and compliance stress
Summary:
If your professional services firm is overwhelmed by CRA slip requirements or worried about penalties for late filings, Gondaliya CPA can handle the compliance process from start to finish and help you stay organized year after year.