Maintaining good records on your employees should be considered essential to running your business. At the end of the fiscal year, you want to have copies of all the records you have on each employee right at your fingertips. However, most businesses find that they really only use these records at the end of the current year. They very rarely look at them ever again, but you never know when you may need them. How long should you really plan to keep your payroll records? Understanding the importance of maintaining your records is essential to running your business well. The Canada Revenue Agency sets out a few guidelines related to what records you should maintain and for how long. Take a look at what your business might be missing with these standards.
Form TD1, Personal Tax Credits Return
Form TP1015.3-V, Source Deductions Return (employees working in Quebec only)
Canada Revenue Agency letters of authority that let you reduce the tax deductions for certain employees during a given year
Information slips issued
All returns filed
Registered pension information
The records and supporting documents that might have an effect on the sale, liquidation, or wind-up of the business: Indefinitely keep the records
The end of a non-incorporated business or other organization ends: six years for the end of the tax year in which the business ended
The dissolution of a corporation: two years after the date of the dissolution
Understanding how long to maintain your tax records and payroll records can be tricky for any business. That’s why you need an experienced accounting firm that can help you to make wise decisions for your business. Compass Accounting has the experience and expertise you need to help keep your business running smoothly. Give us a call today to see how we can help you succeed!