The company's Vice President of Finance, Alexis Brooks, is considering using part of the payroll remittances held in trust to cover unexpected operating costs. She has been advised that outstanding Accounts Receivables should cover the short term deficit within the next 60 days.
As the Payroll Manager, she has asked you to research the consequences of both "late payment" and "failure to file" for the following provincial remittances:
Québec remittances (Québec Pension Plan contributions, Québec Parental Insurance Plan premiums, Québec provincial income tax, health services fund contributions and Commission de la santé et de la sécurité du travail premiums).
Provincial medical premiums and taxes for British Columbia, Ontario and Newfoundland and Labrador
The balance in the Québec statutory remittances account plus the provincial medical premiums and taxes would be sufficient to cover the company's operating costs shortfall, so focus on the penalties for those remittances. Consider the fines, penalties and interest charges set out by the above jurisdictions. You currently remit your Québec deductions twice a month and have an average monthly remittance of between $15,000.00 and $50,000.00. Your annual Ontario payroll is greater than $600,000.00 and your total annual Newfoundland and Labrador remuneration is over $1,200,000.00.
Based on your research, prepare a memo, providing Ms. Brooks with your recommendation(s) and the rationale supporting it so that she can make an informed decision.
Prepare your response in proper memo format (350 - 500 words) as provided in your Student Information Guide, with correct spelling, grammar and punctuation. You will be penalized if you areexcessively over or under the suggested word count. Your response to this question should be based on the course material, your experiences, knowledge gained through the course and at least one external resource. It is recommended that you prepare your response using MS Word or a similar word processing software and save the file in a RTFformat as it will be sent as an attachment to the e-mail.
The information from the external resource(s) and any information taken from the course material must be stated in your own words and cited. For example:
If you are referencing the Canada Revenue Agency's Employers' Guide - Payroll Deductions and Remittances - T4001,state the URLwhere the information can be found, http://www.cra-arc.gc.ca/E/pub/tg/t4001/README.html
If you are referencing the course material, state the Chapter and page number where the information can be found.