“Can’t I just pay my employees with cash?” We still hear some version of this question now and then.
Moonlighting or “working under the table” is the basis for the underground economy in Canada. According to the Canada Revenue Agency (CRA), this can include:
bartering, failing to file tax returns, omitting an entire business activity from your tax return, skimming a portion of business income from what you report on your taxes, and not reporting a portion of employment income, like tips and gratuities.
CRA is actively searching for and fighting these activities. Click here to read more about this important topic.
If you aren’t sure if your small business might be unknowingly contributing to the underground economy, stop now and give it some serious consideration.
Do you have questions about how to set up your small business so you can keep yourself safe? Get in touch.