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At Tax Filings Canada, we handle every part of your termination and severance payroll, from the filing itself to the planning around it. Our accountants work with corporations and business owners every week, so you can focus on running and growing your business.
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Tax Filings Canada provides low-cost, fixed-fee termination and severance payroll across Canada: payroll runs, CPP/EI withholdings, T4 slips and records of employment, built for employers from their first hire to multi-province teams, with payment only after your work is complete.
Send us your slips, statements, and supporting records in whatever format suits you.
We prepare the termination and severance payroll work and flag anything that deserves a closer look.
You review the draft with us and ask questions before anything is finalized.
Once you approve, we file on your behalf and confirm it has gone through.
| Factor | Tax Filings Canada | Typical Firm |
|---|---|---|
| Pricing model | Fixed, flat fee | Hourly / unpredictable |
| Payment | Pay after service | Upfront retainer |
| Price match | Yes, on written quotes | Rarely |
| CRA audit support | Included | Billed extra |
| Typical turnaround | 3-5 business days | 2-4 weeks |
Remitter frequency follows average monthly withholding — new employers generally remit monthly by the 15th of the following month. We quote termination and severance payroll as one low-cost fixed price — the budget-friendly alternative to hourly billing.
These notes are written the way a tax practitioner would explain Termination and Severance Payroll across a desk: no theory, just the points that decide real files.
Everything in termination and severance payroll hangs off a single anchor. Each employer withholds CPP and EI up to the annual maximum on its own account. An employee who changes employers mid-year, including a move between two related payroll accounts, is over-deducted. The excess comes back only through the personal return.
The second point is quieter but costs more when missed. Subsection 78(4) applies to salary or a bonus accrued at year-end but not paid within 180 days of the corporation’s year-end. The deduction is denied until the year it is actually paid. An accrual booked to reduce a tax bill and then left unpaid moves the deduction rather than creating one. The documentation side matters just as much. Employers withhold CPP, EI and income tax and remit on a schedule set by their average monthly withholding. Late remittance carries a penalty of 3% to 10%, rising to 20% for a repeat failure with gross negligence in the same year. Payroll penalties compound quietly. An employer that drifts one cycle late each quarter can owe more in penalties than in the tax it was late paying.
The practical upshot is simple: every one of these rules has a version that helps you and a version that costs you, and which one applies depends on choices made before filing. That is precisely the ground a tax practitioner covers. The smoothest files are the ones where the client arrives with these records already assembled.
Our terms are the same for every engagement: a fixed fee agreed before work begins, a full review with you before filing, and payment only after the service is complete.
Providing transparent fixed pricing and high-quality compliance work for your termination and severance payroll requirements.
Coverage: Standard bookkeeping and termination and severance payroll preparation.
Ideal for early-stage startups and sole proprietors.
Book NowCoverage: Full-service bookkeeping, filings, and CRA compliance support.
Perfect for established small businesses.
Book NowCoverage: Strategic advisory and fractional CFO integration.
Ideal for companies seeking high-growth financial structuring.
Book NowWhy you should partner with Tax Filings Canada Experts for all your termination and severance payroll needs?
Providing tailored termination and severance payroll services to ensure compliance and maximize deductions.
Our tax accountants keep your business compliant with federal and provincial tax rules.
A dedicated team that handles your financials quickly, accurately, and without upfront fees.
Dedicated preparation processes customized for Canadian businesses.
Advanced accounting software integrations with QuickBooks, Xero, and wave accounting.
Customized packages designed to grow as your business operations expand.
Our clear four-step workflow ensuring absolute tax optimization and complete CRA compliance.
Start with a free, no-obligation consultation to review your business’s financial, tax filing and compliance needs and outline our affordable solutions.
Receive a comprehensive checklist and securely provide the required financial records and documents.
Our tax accountant and accounting experts carefully prepare your filings, identify all applicable deductions and credits, and conduct thorough reviews.
We file your documents electronically with the Canada Revenue Agency (CRA) on time and provide post-filing support.
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See how our expert Termination and Severance Payroll tax and accounting services have helped Canadian businesses save money and stay compliant.
A growing tech team with stock options in Kelowna, British Columbia was preparing to sell. However, a minute book with no resolutions behind a decade of dividends disqualified the shares. Purification sheltered $435,000 under the exemption.
A growing tech team with stock options in Kelowna, British Columbia had an offer on the table and 13 months to close. The shares did not qualify for the capital gains exemption. A minute book with no resolutions behind a decade of dividends was part of the reason. We purified the corporation so the shares met the qualifying tests. We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips. All of it was done well ahead of the closing date. The sale closed on schedule with $435,000 sheltered by the lifetime capital gains exemption across the shareholders.
Closing the books at a charity with part-time program staff in London, Ontario took 11 weeks. The cause was T4 slips filed weeks after the deadline with no relief request made on the per-slip penalty. It now takes 4 days.
The accounting file at a charity with part-time program staff in London, Ontario had a weak foundation. It was built on T4 slips filed weeks after the deadline with no relief request made on the per-slip penalty. The year-end had taken 11 weeks each of the last three years. We reviewed each contractor against the CRA’s control and integration tests and converted those who met the employment tests. We priced the transition before it was forced by a ruling. We also moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild. The file reconciles. Month-end closes in 4 days instead of 11 weeks, and the year-end is a review rather than a reconstruction.
A landscaping company with seasonal staff in Calgary, Alberta had never tested its work against the eligibility rules. The resulting $67,000 claim was accepted without adjustment.
A landscaping company with seasonal staff in Calgary, Alberta assumed the credits did not apply to a business its size. Long-term contractors who met every test for employment meant they had applied all along. We identified the qualifying activity and built the documentation to support it. Then we wrote each pay code against its income tax, CPP and EI treatment. That way, a new benefit could not reach the payroll without a decision on how it was withheld. $67,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
A restaurant with heavy seasonal turnover in Kitchener, Ontario had already been penalised. The issue was remittances still going out monthly after the business had moved to the accelerated threshold. A relief application cancelled $130,000 of that penalty.
A restaurant with heavy seasonal turnover in Kitchener, Ontario had already missed one deadline and was about to miss a second. Behind it sat remittances still going out monthly after the business had moved to the accelerated threshold. A penalty of $130,000 was accruing. We split the work into what had to happen before the deadline and what could follow it. Then we corrected the CPP and EI withholding for the balance of the year. We set the employee up to recover the over-deduction on the personal return. The outstanding return was accepted as filed, and the taxpayer relief application cancelled $130,000 of the penalty already assessed on the earlier year.
A logistics operator with drivers in three provinces in Ottawa, Ontario was under review. The issue was a bonus accrued to bring the year-end tax bill down and still unpaid more than a year later. The file closed in 6 weeks with $124,000 of proposed tax cleared.
A logistics operator with drivers in three provinces in Ottawa, Ontario was selected for review. A bonus accrued to bring the year-end tax bill down and still unpaid more than a year later had shown up in the CRA's automated matching. The proposed adjustment on termination and severance payroll came to $124,000. We paid the accrued bonus inside the 180-day window and kept the deduction in the year it was accrued. Every figure in the response traced to a source record the auditor could verify without asking a second question. The review closed with no change. $124,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
A $110,000 reassessment landed at a construction firm with union and non-union crews in Moncton, New Brunswick. It rested on long-term contractors who met every test for employment. The objection was allowed in full.
A construction firm with union and non-union crews in Moncton, New Brunswick had been reassessed for $110,000. 13 days were left on the objection deadline. The reassessment rested on long-term contractors who met every test for employment. We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, we reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s. The appeals officer allowed the objection in full. $110,000 was reversed and the account returned to a nil balance.
Meet the specialists behind your Termination and Severance Payroll filings. Our Partners Are Alumni of the World's Top Accounting and Tax Institutions
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Same fixed fees in every province. Find your city or your sector.
Direct answers to what Canadian business owners actually ask before hiring an accountant.
Termination and Severance Payroll starts at a fixed fee quoted before any work begins. The quote is locked at the outset and does not change mid-engagement, and you pay only after you have reviewed and approved the deliverable. Compare every plan on our transparent pricing page.
At minimum: prior-year returns and notices of assessment, your bank and credit-card statements for the fiscal period, payroll records if you have employees, and GST/HST filings. We send a checklist tailored to your situation after the free 15-minute call.
Most engagements are completed within 3 to 5 business days once your documents are complete. Catch-up work covering multiple years takes longer, and we tell you the realistic timeline before you commit rather than after.
We respond on your behalf at no extra charge for any return we prepared. Every figure we file is supported by documentation retained in your file, which is what turns a CRA review from a crisis into correspondence. See how our CRA audit representation works.
Yes. Late filing penalties compound at 5% of the balance owing plus 1% per month, so the cost of waiting is real. We prioritise catch-up work and, where eligible, file under the CRA's Voluntary Disclosures Program to reduce penalties.
Yes. We serve clients in every province and territory at the same fixed fees, so your location does not change the price or the service. Browse our coverage across Canada to find your city.
We work across construction, healthcare, e-commerce, professional services, restaurants, real estate, transportation, technology and non-profits, each with its own deduction profile and CRA scrutiny patterns. See all industries we serve.
Software applies the rules you already know about. An experienced tax accountant finds the ones you do not: capital cost allowance timing, the small business deduction threshold, shareholder loan repayment rules, and TOSI exposure on family dividends. The fee is usually smaller than the deductions it surfaces.
Our termination and severance payroll services include complete filing, compliance management, and strategic advice customized to Canadian tax laws.
You can start by booking a free 15-minute call. We will review your files, provide a fixed quote, and start working immediately.
A tax filing specialist answers this differently than a search engine, because the rule has edges. Source deductions are held in trust for the Crown from the moment they are withheld, which is why directors can be personally liable for unremitted amounts under section 227.1. Unlike most corporate debts, this one can follow the directors personally after the company is gone. Where your business sits relative to those edges is what we establish in the first meeting.
There is a widespread assumption here, and the actual position is worth stating plainly. Late payroll remittances draw a penalty of 3% to 10% depending on how late. The penalty doubles to 20% for a repeat failure with gross negligence in the same calendar year. If your current setup was built on the assumption instead of the rule, that is fixable — but sooner is better than later.
The questions Canadians actually search on this topic, answered plainly. Browse every question in the Canadian tax answers directory.
There is no single percentage. Your employer applies the federal withholding table plus the table for your province or territory, using pay frequency, your annual rate of pay and the amounts claimed on your federal and provincial TD1 forms, then adds CPP contributions and EI premiums until the annual maximums are met. Pension contributions, union dues and benefit premiums come off separately. The CRA's Payroll Deductions Online Calculator reproduces the exact figures shown on your stub.
The GST rate is 5%, unchanged since 1 January 2008 and current for 2025 and 2026. It reaches every province and territory, but in five provinces it is folded into the HST: you charge 13% in Ontario, 15% in New Brunswick, Newfoundland and Labrador and Prince Edward Island, and 14% in Nova Scotia, down from 15% on 1 April 2025. In Alberta, the Northwest Territories, Nunavut and Yukon, 5% applies alone.
No. That measure is American and nothing equivalent has been enacted here, so there is no date on which tips stop being taxed in Canada. Tips and gratuities remain taxable income. Amounts your employer controls and distributes are normally put through payroll with income tax, CPP and EI withheld, while tips handed to you directly are still reportable on your T1, cash included. Keep a daily record, since the CRA can estimate unreported tips from sales data.
If you are incorporated, you can take salary, dividends, or a mix of both. Salary is deductible to the corporation, builds RRSP room and CPP entitlement, and requires payroll registration and regular remittances. Dividends need no payroll but come out of after-tax corporate income and create no RRSP room. Sole proprietors and partners simply draw money and pay tax on the business profit. The right mix depends on your cash needs and the corporation's tax position, so model both.
Withhold three things from each pay: income tax, CPP and EI. For 2026, CPP is 5.95% from the employee and 5.95% from the employer on pensionable earnings between the $3,500 basic exemption and the $74,600 ceiling, plus CPP2 at 4% up to $85,000. EI is $1.63 per $100 of insurable earnings for the employee, and the employer pays 1.4 times that. Use the CRA payroll deductions online calculator, then remit by your assigned due date.
Line 43500 is your total payable. Add net federal tax from line 42000, your provincial or territorial tax, CPP contributions payable on self-employment and other earnings, any EI premiums on self-employment income, and any social benefits repayment. That total is what you owe before credits for tax already paid; subtracting your total credits gives the refund or balance owing at the end of the return.
Not alone. A municipal council sets the property tax rate when it votes the annual budget and levy, and the mayor holds one vote, though a few provinces give mayors added budget powers that council can still override. Your bill is the assessed value of the property multiplied by that rate, plus an education portion the province sets. Assessments come from a provincial assessment body, not from the mayor.
Employees pay as they earn, through tax withheld from each pay and remitted by the employer. Everyone else pays by instalments during the year or as a single balance payment with the return. For the 2025 tax year the filing and payment deadline is 30 April 2026; self-employed filers have until 15 June 2026 to file, but the payment is still due 30 April 2026. Interest runs daily on anything unpaid after that.
There is no federal renters credit. Several provinces give rent-based relief through the provincial credits filed with your T1, including Ontario's energy and property tax credit, Manitoba's renters tax credit and Quebec's solidarity tax credit. Eligibility generally turns on residing in that province at the end of the year, having paid rent on a principal residence, and income below a phase-out level. Keep receipts and your landlord's details, and claim it each year you qualify.
Taxable income covers employment income and taxable benefits, self-employment and side income, tips, pensions and registered plan withdrawals, EI and most government support payments, interest, dividends, the taxable part of capital gains, rental profit, and foreign income earned while resident here. Residents report worldwide income, and the absence of a slip does not make an amount exempt. Taxable income is what remains after the deductions you qualify for, and the rates apply to that figure.
The CRA charges compound daily interest on an unpaid balance starting the day after the payment deadline, at the prescribed arrears rate it sets each quarter. Because that rate is reset quarterly, check the current figure on the CRA site rather than relying on one you saw last year. The same interest applies to late instalments and to penalties already charged. Paying part of the balance now reduces the interest accruing on the rest.
Reviewed and fact-checked by Udit Gupta
Ex Big 4 — Ernst & Young, Deloitte · International & cross-border tax specialist · CPA Canada (In-Depth Tax Program) · Chartered accountant, ICAI & MIA
Udit Gupta has over 15 years of experience helping corporations and business owners with corporate structuring, corporate tax filing, bookkeeping, payroll, GST/HST, cross-border tax and CRA representation. He is Big 4 trained, at Ernst & Young and Deloitte, and qualified as a chartered accountant in India and again in Malaysia. In 2014 he founded his accounting practice to serve entrepreneurs, startups and non-resident business owners across Canada. View full member bio.
The Institute of Chartered Accountants of India — member 521458 · Malaysian Institute of Accountants — member CA 44667 · Ex Big 4: Ernst & Young, Deloitte · CPA Canada (In-Depth Tax Program), completed 19 Dec 2023 · In-Depth GST/HST Part I, 12 Jul 2022 · Part II, 5 Jul 2023
Editorial policy. Every page is researched against primary sources — the Income Tax Act, CRA publications and CPA Canada guidance — and every rate or threshold is stated with the tax year it applies to.
Sources. CRA — Payroll · CRA — Keeping records · Income Tax Act (Justice Laws Website)
