What should you do if your business stops operating?

When your business stops operating you have to follow these steps:

Step 1

Remit all CPP contributions, EI premiums, and income tax deductions withheld for the former employees to your tax centre within seven days of the day your business ends.

Step 2

Calculate the pension adjustment (PA) that applies to your former employees who accrued benefits for the year under your registered pension plan (RPP) or deferred profit sharing plan (DPSP). For more information on how to calculate pension adjustments, see Guide T4084, Pension Adjustment Guide.

Step 3

You may want to confirm the labour standards of your employee's province or territory of employment to ensure that you have met their requirements.

Step 4

Issue a Record of Employment (ROE) for each former employee. You generally have five calendar days after the end of the pay period in which an employee's interruption of earnings occurs to do so.

Step 5

Fill out and file all T4 or T4A slips and summaries using electronic filing methods or on paper, and send them to the Jonquière Tax Centre within 30 days from the date your business ends. Give copies of the T4 or T4A slips to your former employees.

Step 6

Close the business number and all CRA business accounts after all the final returns and all the amounts owing have been processed. To close your payroll program account, you can use the "Request to close payroll account" service in My Business Account. An authorized representative can use this service through Represent a Client.

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