What are Tradelines, and How Do They Impact Your Credit Score?
To explain it simply, trade lines are credit accounts that you use to make purchases. They are known as tradelines as they offer you lines of credit. If you have several revolving and installment credit accounts, each of these will have a separate trade line. The information about your credit usage with these accounts gets relayed by your creditors to the three credit bureaus, and it will appear
Five Benefits of Adding Trade Lines to Your Credit Report
The credit accounts that you use to make purchases or utility payments appear on your credit report as credit lines that are known as trade lines. If you are up-to-date about repayments, the tradelines can improve your credit score. You can also add new tradelines to your credit report for 30 days or longer and see a significant difference in your credit score.
Here are five benefits of adding trade
How to Build Credit in Four Simple Steps
Having good credit is crucial for a variety of reasons, including getting a home mortgage or an education loan on reasonable terms and for getting low insurance premiums. Additionally, if you are looking for a job, your employer may check your credit history before deciding to hire you. Even something as simple as applying for a cellphone can be affected by your credit score.
Most financial companies
Six Things to Consider Before Choosing an Audit Firm
Having internal auditing provides worthy insight concerning an enterprise’s business policies and procedures from an independent viewpoint and ensures that it’s governance, risk management, and internal control systems are as per the standard and are functioning orderly. If you’re
A Guide to Auditing Top Management and the Internal Audit Checklist
Why is internal audit imperative? Internal audit is an essential procedure and effective tool for any organization to uphold information security and conformity program for efficiently and seamlessly managing risk. Simply put, while being in the key positions, a string of questions may strike you like, whether we do the things that we commit or if there are gaps among our
Learn the Basics of CRA Payroll Remittances and When They’re Due
It includes the Canada Pension Plan Contribution which is 4.95% up to a yearly maximum. It further includes the employment insurance premium up to a yearly maximum and income tax which is based on the current rates that are determined by whether the employee reports the business establishment or not. The employer’s portion includes the contributions made by the employer CPP and the employer EI premiums which is 1.4 times the amount deducted from the employee’s premium.
Things to keep in mind
- There is no minimum age requirement or restriction for income tax or EI.
- Employers may choose to reduce the employer premium by offering short term disability coverage.
- CPP must be deducted for employees aged 18 to 70, who are engaged in pensionable employment and who are not considered as disabled.
As an employer, you need to know which remittance schedule you should follow. This basically depends on the average monthly withholding amount which is the sum of all the payroll deductions you paid to the CRA in a particular year. Your two year history of AMWA is used to help classify you as a remitter. There are four types of remitters-new, regular, accelerated and quarterly.
New remitter: You will be classified as a new remitter if you are a new employer and have never made remittance payment earlier. If you are a new remitter, your payment will be due on the 15th of the month following the one in which you made the deduction. Small businesses may qualify as a new remitter.
Regular Remitter: You will be classified as a regular remitter if you are a new employer with a history of less than two years and have a two year AMWA not exceeding $25,000. The remittances for regular remitters are due on the 15th day of the month following the one in which deductions are made.
Accelerated Remitter: The third category is of an accelerated remitter which has two sub categories. The first has a threshold of employers with a two year AMWA ranging between $25,000 – $99,999.99. Remittances for these threshold remitters are due on the 25th day of the same month for the payroll which is processed in the first 15 days of the month. For a payroll that is processed after the 16th day of the month, the remittances are due by the 10th day of the next month. The second threshold is for employers with a two year AMWA exceeding $1, 00,000. The payments for threshold 2 remitters are due no later than the third working day after the 1st. 7th, 8th, 14th, 15th, 21st and 22nd day and the last day of the month. Basically, the remittance will be due no later than the third business day after the week in which the payroll has been processed. Remitters in this category also need to make payments through a financial institution one day before the due date. In order to make your job easier, you can opt for CRA payroll remittance online.
Quarterly Remitter: The last category is a quarterly remitter which usually consists of small businesses. These remitters have an AMWA not exceeding $3, 000 in the previous two years and have an ideal compliance history with the CRA. Their remittances are due on or before the 15th of April, 15th of July, 15th of October and 15th of January for the payrolls that are processed in the previous quarters.
It is extremely important for every employer to make payments on time in order to avoid fines and penalties.