Padgett Business Services, the Small Biz Pros, provides professional small business accounting, tax preparation, bookkeeping, and payroll processing services in London in the province of Ontario, Canada.

RELATIONSHIPS

"Padgett knows my business inside and out. In fact, sometimes I think they know more about my business than I do. And they are always there when I need them"

DEPENDABILITY

"Dependability was a critical factor for me when selecting a service provider. Padgett has exceeded my expectations"

EXPERIENCE

"I remember thinking my Padgett representative really did his homework, because he was so plugged into the realities of small business. Then it dawned on me, he runs his own Padgett office, which is a small business. He's talking from experience".

PEACE OF MIND

"I sleep better at night with Padgett on my team. Taxes, Payroll, government compliance - I don't worry about those things anymore and now I'm able to really focus on running my business."

QUALITY RELATIONSHIPS BREED SUCCESS

Integrity - This essential quality of our relationship will allow you to focus on what's most important: building and growing your business.

QUALITY RELATIONSHIPS BREED SUCCESS

Integrity - This essential quality of our relationship will allow you to focus on what's most important: building and growing your business.

UNIQUE BUSINESS ISSUES REQUIRE UNIQUE SOLUTIONS

We understand that no two small businesses are alike. That's why we offer a complete range of services. We analyze your individual needs and put together the combination of services that works for you, the small business owner.

Where Your Success
Takes Root

Tax Alerts

Calculating instalment payments

2011-10-05

If you are an annual filer and your net tax for a fiscal year is $3,000 or more, you may have to make instalment payments throughout the following fiscal year.

You can calculate your instalment payments and view their related due dates online. To use the Instalment payment calculator service, see My Business Account. These quarterly payments are due one month after the end of each of your fiscal quarters and are usually equal to ¼ of your net tax from the previous year. You may also choose to base your quarterly instalment payments on an estimate of your net tax for the current year if you expect that your net tax for the current year will be less than it was for the previous year.

Example
You are a corporation with a December 31 fiscal year-end. Your net tax for the 2009 fiscal year was $4,000. You estimate that your net tax for 2010 will be $3,200. We will calculate your quarterly instalments at $1,000 each ($4,000 ÷ 4). However, if you choose to base your instalments on your estimate for 2010, you can make quarterly payments of $800 ($3,200 ÷ 4). Your first instalment is due April 30, 2010. The balance of your net tax for 2009 was due one month earlier, on March 31, 2010.

Note
If you estimate your instalments based on your current year and the instalment payments you make are less than the amount you actually should have paid, we will charge instalment interest on the difference. A penalty no longer applies on late remittances. However, interest will still apply on late remittances.

When you file your GST/HST return at the end of the fiscal year, deduct the instalment payments you made throughout the year from the net tax you owe on line 110 of your return.

Generally, if the instalments you paid are less than your net tax, you have to remit the difference. If the instalments you paid are more than your net tax, you can claim the difference as a refund.

Notes
For information on instalment payments for selected listed financial institutions, see Guide RC4050, GST/HST Information for Selected Listed Financial Institutions, and the Department of Finance's May 19, 2010 Backgrounder - Financial Institution Rules for the Harmonized Sales Tax (HST).

Only for Ontario and British Columbia

If your business is situated in either Ontario and British Columbia, and you have an annual reporting period that begins in 2010, there are proposed changes for calculating the amount of your instalment payments for that reporting period. To learn more, see Instalment payments following harmonization - Ontario and British Columbia.

Forms and publications

Source