Canada: Preparing T4A Reports

Canada: Preparing T4A Reports

** Loft47 generates information to create T4A information, we do not file this information with CRA. https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/completing-filing-information-returns/t4a-information-payers/t4a-information-return.html 

Tax Settings (Turn on Reporting)

  • Turn on your reporting by adding the year(s) in the Allowed Tax Years field.

  • Enter your Threshold amount in Tax Reporting Threshold field.

  • Set your Other Income/Mentor Fee Income reporting

 

First Year

For your first year with Loft, please review the following information and update us as soon as possible. In order to prepare your year-end contractor statements, we will need confirmation on the following items: 

  • Your business tax number (on the Brokerage edit Menu)


If your Accountant or Rep is filing for you, enter your REPID here:


  • Agent & Company Tax Numbers

From the Tax Report menu, you can export a CSV file to review which people and companies are missing their Tax IDs. If an Agent is paid to their own name, you'll use the Tax ID on their profiles (social insurance number). 

If they pay out to their company name, please update the Organizations Tax ID in the Organization profile. 

If the company name is a registered business, it will also require a 9-digit format, followed by 'RP0001'. Eg. 000000000RP0001. For more information regarding this, read here.



Determine How you'll Report

When setting up your fees during onboarding, we always default (unless directed otherwise) to set your deductions/fees to NOT net out Gross Commission incomes.  


If you’re unsure which deduction is netting out your GCI, you can head over to the Deduction Template page, under your Brokerage menu, and you can visually check there (Don’t forget to check all pages!) For more information on Determining How you report and Deduction settings, click here https://support.loft47.com/portal/en/kb/articles/adjusting-your-deductions-for-tax-reporting


If you need to switch those deductions to NET out the GCI, you can alter any or all as such by clicking the pencil next to the deduction and in the general settings section of the deduction, add a checkmark to Reduce 1099/T4A checkbox. Save your changes.


Tax Return Reports

  1. Head to Reports>Tax Returns Report
  2. Add the Year
The default setting for the downloaded files for the Brokerage is to include any Agent that had transactions and was active for any length of time in the specified tax year. If you want to pull in any deactivated / inactive Agents that were inactivated in years prior to the current year or if you want to include all the external Brokerage’s payouts you can choose to add them from the filter. Please note, government filing requires Tax IDs, so if you are reporting for Outside Brokers you'll need to add their Tax IDs.


Pulling an Agent's individual T4A

 Agents will be able to print a PDF of their records via their Profile under the Tax Return Section of their profile.

For more information on filing your report, visit https://support.loft47.com/portal/en/kb/articles/tax-filing#Canadian_Clients

Thank you :) 





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