Transcript - How to register BN, GST, Payroll etc.
Host
Slide 1:
This webcast was previously recorded; therefore you do not have the ability to ask live questions.
Hello, and welcome to the Canada Revenue Agency small business webinar on how to register your business.
My name is Paulette and I will be your moderator for the session today, and it's my pleasure to be here.
Although we can't cover everything we want to provide you with enough information so that you're comfortable with the registration process and so you know where and how to get the information, or to get more information. Also we will be splitting the presentation in 2 sections, so you don't have to wait until the end to get answers to your questions. The procedure for asking questions is quite simple. All you have to do is type your question in the question box on your screen. Also please note that if the question relates to your own personal tax situation we will not be answering for confidentiality purposes. Also we will not comment about any service that the audience may have received in the past, and you may send your questions at any time throughout the presentation. And finally we will screen the questions according to suitability. And suitability is defined by whether we can answer the question in a timely manner and whether the question relates to the subject. And the last thing is that we will have a website where we will post answers to the unanswered questions if ever we run out of time.
Now that we have all the housekeeping in order, it is my pleasure to introduce Gilles who will be you presenter for today.
Presenter
Slide 2:
Thank you Paulette, and with that we will start the presentation.
I will move to slide number 2 which is titled "Do you need to register?"
First you must determine if you need to register for a business number or a CRA account.
A business number is a 9 digit number that CRA will assign to business for its tax matters in Canada. Account numbers include an additional 2 letters and 4 digits. Not all businesses require a B.N. so it is important to review the information for each type of account before you register. If you decide to register for any of these accounts you will receive a B.N.
Presenter
Slide 3:
Moving to slide number 3, we will look at the requirements for GST and HST.
Generally you do not have to register for GST or HST if your worldwide revenues are $30,000 or less. One exception to that is if you operate a taxi or limousine service. If that is your situation you must register regardless of the income you have. You can also register on a voluntary basis. If you decide to do so you, will have to charge, collect, remit GST on sales of taxable goods and services. You will have to file GST returns on a regular basis, and you will have to stay registered for at least a year before you cancel the registration.
Presenter
Slide 4:
Moving to slide number 4 "payroll accounts"
You must open an account before your first payment is due. Your first payment is due on the 15th of the day of the month after which you'll become a trustee, or administrator. If you're not sure whether someone is an employee or self employed, please refer to the heading employee versus self employed on our website.
Presenter
Slide 5:
Slide number 5 " Corporate Income Tax Account"
In most cases new corporations will automatically receive a B.N. from CRA within 45 days of incorporating at a federal or provincial level. All corporations must provide a copy of its certificate of incorporation or amalgamation papers. You can also provide that information on part E2 of our C1 form request for business number registration.
Presenter
Slide 6:
Moving to slide number 6. "Import/export account".
You will use your import/export account number to process customs documents. To avoid delays releasing your goods at the border make sure you open the account before you start import or exports of goods, and make sure that you include all the business names that may appear on the customs forms when you register. And by that we mean, the legal name, operating name or any common trading name that you may use.
Presenter
Slide 7:
Slide number 7 "Other Accounts".
There are situations where other accounts may be needed and for that you should look at the CRA website. An example of such an account is the excise tax account. Persons involved in the sale and manufacturing of selected items such as petroleum products, automative fuels and jewelry. Automative and heavy automobile's air conditioners are required to register for an excise tax account.
Presenter
Slide 8:
Slide number 8.
Opening a CRA program account is the first step in the process that requires you to remit tax and other amounts, file returns and meet other obligations. You should open your CRA program accounts when you are close to starting your operations. Please be prepared to supply all of the required information listed on the slide. Namely, your social insurance number, business structure, name, location, business activity, contact person or representative, sales amount reported and fiscal period end.
Before moving on maybe we should pause now and see if any questions have come in. Paulette.
Host:
In fact there are several questions that have come in
The first question is; the slide says when you incorporate with a province, territory or Industry Canada, your business will automatically be registered for a business number and a corporation income tax account. Is that the same in all provinces?
Presenter:
No. Actually that's not the case. There's different requirements depending on the province where you register. So if you're not sure of the situation that applies to you , you should call into our 1-800 number and ask the assistance from one of our agents.
Host:
Ok, second question. The slide says, if you import goods into Canada or export goods to other countries you should register for an import/export account. Is there a volume requirement when I need to get an account?
Presenter:
No. There is no volume requirement. The main purpose for registering an import/export account is, you have to register if the imports and exports are for commercial purposes.
Host:
Ok, next question. Can a cleaning service register for GST even if income is less than $30,000?
Presenter:
Of course, as I mentioned before, any person can register on a voluntary basis. Therefore even if you don't meet the $30,000 threshold, you can choose to register.
Host:
And our final question. Can I fax my registration in?
Presenter:
Yes. You can download the file from our website, complete it and fax it to your local tax service office.
Host:
Ok, that's all the questions for now but I also encourage any and all participants to submit there questions as we go along. Thank You.
Presenter
Slide 9:
Thank you, Paulette.
So we will now move on to slide number 9, "How to Register."
You can register for a B.N. and for one or more of CRA accounts at the same time. As mentioned earlier, if you incorporated your business it may automatically have been registered for a business number and a corporate income tax account. If you're not sure, contact us to find out if your corporation already has these. The means through which you can register are the Internet, phone, mail, or fax as we just mentioned.
Presenter
Slide 10:
Moving to slide number 10, "Your obligations."
Regardless of the type of business you operate, there are certain core obligations you have to meet. Accordingly, all businesses must file returns regularly, remit amounts owing, and keep complete and organized records. You should also note that some accounts may have additional requirements. To find out that information you should either call one of our agents or visit our website.
Presenter
Slide 11:
Slide number 11.
You should take your business obligations seriously since penalties will be applied if you fail to do so. For example: for payroll accounts there are penalties if you fail to deduct, fail to remit, or make late remittance.
Presenter
Slide 12:
Slide number 12.
As I mentioned before, you must first open a business number, then you can add the program accounts that your business requires. Business accounts which you can register for include, and some of which we've touched on already, are payroll, GST, import/export, corporate income tax, excise tax etc. Note that certain CRA accounts require specific information when registering and thus make sure you have those handy when you start the registration.
Presenter
Slide 13:
Slide number 13.
We will ask that you provide the following basic information regardless of whether you register by Internet, telephone or mail. We will need the business name, the business number if there is one, the type of business organization, and by that I mean soul proprietorship, corporation and so on. The name, and social insurance number of all owners, directors, partners, officers, the operating address, the mailing address if it differs and a description of the major business activities. Again, please be prepared and have all this information ready when you start the registration process.
Presenter
Slide 14:
Slide number 14.
We will now go over the steps that you should follow if you would like to register by Internet. Registering electronically has many benefits. It is secure, convenient and easy to use. It also offers one stop service to register for several programs and for more than one level of government at the same time. Now let's get started and look at the process. First from our main page, select the business type or business link.
Presenter
Slide 15:
Slide number 15.
Then select the business registration link.
Presenter
Slide 16:
Slide number 16.
Once you're on the business registration page, choose the "how to register link", which is in the right column.
Presenter
Slide 17:
Slide number 17.
Choose the business registration link under the Internet title.
Presenter
Slide 18:
Finally, Slide number 18.
Click on the "register now" link. You will note also on this page that the online service is available six days a week as it is not available on Sundays. You can also choose the appropriate link to find out the hours of operation in your area.
Presenter
Slide 19:
Slide number 19.
When you are ready to register, simply enter the information requested in the appropriate fields. Once you have everything entered ,click on the "next" button. The program will let you know if you've entered incorrect information or entered it in a wrong format. Please note that if you already have a business number you will not be able to open another business number since only one number is available per entity. However, if you have a secondary business activity, please contact us or one of our agents to find out what steps to follow to register them. We will pause now again to see if any more questions have come in.
Host:
Yes we have one question, which is, the slide says to register for a business number we need to describe the major business activity. Why do you need that information to register the business?
Presenter:
Actually that information is forwarded to Statistics Canada which then identifies the NAICS code which is North American Industry Classification System code which is used to monitor the various business activities that we have in Canada.
Host:
Great! Thank you for the answer and thank you for so many questions.
Presenter:
Ok, we'll just continue with the presentation.
Presenter
Slide 20:
Slide number 20.
If you would prefer to register by phone, one of our agents will gladly assist you. To reach our agents simply use our toll free 1-800 line. Again, I can't stress this enough, please make sure that you have all the required information handy before you call.
Presenter
Slide 21:
Slide number 21.
If you prefer to complete the paper application form, you can download it from our site and then simply complete it and send it by mail or by fax.
Presenter
Slide 22:
Slide number 22.
When do you get your business number? If you need your business number quickly, you may want to register through the Internet or telephone since we will provide you with the number at that time. If, however, you choose to register by mail or by fax, then it may take a few weeks before you actually get the number.
Presenter
Slide 23:
Slide number 23
Once your registration is complete, the Canada Revenue Agency will send you a confirmation letter. When you receive the letter, please review it for accuracy and make sure that there is no missing information. If you determine that additions or corrections are required, please call us and an agent will assist you.
Presenter
Slide 24:
Slide number 24.
Actually this is just a summary of, again the references for our phone numbers and web address. Have any questions come in since the last period?
Host:
Yes. Next question. Does an insurance agent have to register for a business number?
Presenter:
I'm not sure about that. To be safe, I'm not going to risk an answer here but just recommend our viewers call one of our agents to clarify that.
Host:
Ok, so for that question, you recommend they call our business inquiries line to get more information?
Presenter:
Yes.
Host:
Next question. The person says I earned closer to $30,000 in 2007 and would it be in any way useful for a business registration?
Presenter:
As long as you're under the $30,000 threshold then there is no obligation for you to register but if may be of use just because the size of your activity makes it such that it actually might be beneficial for you to register so that you can submit your regular forms for claiming among other things, the input tax credits.
Host:
But if their revenues go above $30,000, then they're obligated to create a business number?
Presenter:
Yes, that's accurate. As mentioned before, as soon as you're above the $30,000, then you do have to register.
Host:
Ok, thank you.
Presenter:
Thank you, Paulette. Well, given that we have no further questions Paulette, I will hand it over to you now just to have the closing remarks.
Presenter:
Ok, as Gilles mentioned ,we have now reached the end of the presentation. For any questions, please consult our website at www.cra.gc.ca or call our business inquiries line at 1-800-959-5525. Thank you and we hope you found this webcast useful.
END