Next on the year-end checklist, it’s time to update critical information.
Your business might have changed quite a bit this year. The same goes for your vendors and suppliers.
Now is a good time to verify the contact information of your vendors.
This includes addresses, contact names, official business titles, and email addresses. This information will improve the other part of the process, sending the relevant payment information to tax agencies.
Both the U.S. Department of Treasury (IRS) and the Canada Revenue Agency require small businesses to report payments made to certain suppliers and vendors over a certain threshold.
The IRS requires the filing of a Form-1099 to vendors and contractors who received at least $600 in rents, prizes, services, awards, or other payments during a tax year. The deadline for filing is typically January 31.
Meanwhile, the CRA requires that Canadian businesses file the T4A form by the last day of February. For more information on filing a T4A, visit here.