Bonus can be a very good corporate tax planning tool, when the shareholders wants to withdraw profits from their corporations in Canada. You can avoid the penalties and interest on late payment of withholdings taxes on the bonuses paid to your shareholders. On the regular salaries and wages paid to the shareholders, you need to withheld tax cpp, match the cpp employers contribution, pay the CRA payroll remittances on a regular basis. Usually, for a monthly remitter, the payroll remittances are due by the 15th of the following month. If you do not pay by the due date CRA will charge a penalty and interest. The amount of penalty increase as you repeat you defaults. If you are paying bonus to your shareholder you can the withholding taxes within the six months from the date of the bonuses declared to your shareholders.
Withdrawing profits from the corporation involves proper tax planning. You should consult with a tax professional. We provide corporate tax planning services to our corporate clients since the beginning of their corporate fiscal year.