Compliance sounds like a big-company thing: a code of ethics, a whistleblower line, a department of its own. In a small business in Canada, compliance is much more concrete. It is a calendar.
A GST/HST return here, employee T4s at the end of February, the corporate return six months after year-end, an annual report to government that almost nobody remembers exists. Most penalties small businesses pay in Canada do not come from fraud. They come from missed deadlines.
This guide shows what compliance means in practice for a small business, deadline by deadline, including what changed in 2025 and 2026.
- For a small business, compliance means meeting four sets of obligations: taxes, payroll, corporate filings with government, and employer rules.
- The most expensive mistakes are quiet ones. A payroll remittance more than 7 days late costs a 10% penalty. A forgotten annual return can lead to the corporation being dissolved.
- Three recent changes: the federal register of individuals with significant control (ISC) is now public, Ontario changed its hiring rules, and the accessibility report is due December 31, 2026.
Taxes: GST/HST
GST/HST registration becomes mandatory once the business stops being a small supplier, that is, when taxable sales exceed CAD 30,000 in one calendar quarter or over the last four quarters combined. From then on, you have 29 days from the effective date of registration to register and start charging the tax.
Filing frequency depends on annual revenue:
Annual revenue | Frequency and deadline |
Up to CAD 1.5 million | Annual, quarterly or monthly, your choice. Annual returns are due 3 months after year-end |
CAD 1.5 million to CAD 6 million | Quarterly or monthly, due 1 month after the period |
Over CAD 6 million | Monthly, due 1 month after the period |
A self-employed person with a calendar year-end who files annually has until June 15 to file, but the tax is due April 30. A return is required even when there was no activity, and almost every registrant must file online.
Taxes: the corporate return
- T2: due 6 months after year-end.
- Balance of tax: due 2 months after year-end, or 3 months for a CCPC that claims the small business deduction and meets the conditions. In other words, the tax is due before the return.
- Monthly instalments: required when federal tax for the current or previous year exceeds CAD 3,000. An eligible CCPC can pay quarterly.
Payroll
An employer withholds income tax, CPP and EI from wages and remits them to the CRA. For most small businesses, the remittance is due on the 15th of the month after payday. The late penalty climbs quickly:
Remittance late by | Penalty |
1 to 3 days | 3% |
4 to 5 days | 5% |
6 to 7 days | 7% |
More than 7 days, or nothing remitted | 10% |
The penalty generally applies only to the amount above CAD 500. For a repeat failure in the same year involving gross negligence, it reaches 20%.
Annual slips, the T4, T4A and T4 Summary, are due on the last day of February. When an employee leaves or goes seven days in a row without work or pay, the employer issues a Record of Employment (ROE), generally within 5 days after the end of the pay period. More in our guide to payroll in Canada.
Corporate filings with government
Besides the CRA, a corporation reports to the jurisdiction where it was incorporated.
Federal corporation (CBCA). The annual return goes to Corporations Canada within 60 days after the anniversary of incorporation. Since January 22, 2024, it includes the individuals with significant control (ISC): the people who, directly or indirectly, hold a significant stake in the company. Changes must be reported within 15 days. Part of this information is public, such as names and the type of control. Failing to file can lead to dissolution and fines of up to CAD 100,000.
Ontario corporation. The annual return goes to the Ontario Business Registry within 6 months after year-end, separately from the T2 since 2021. An ISC register is also mandatory, but it is kept at the registered office and not sent to government. It must be updated every year and within 15 days after any change.
Employer obligations
- WSIB (Ontario): register within 10 days of hiring your first worker. In New Brunswick, WorkSafeNB coverage is mandatory from 3 workers.
- Employment standards: the ESA poster no longer has to be on the wall, but every employee must receive a copy within 30 days of hiring. Health and safety posters are still required in the workplace.
- Ontario employers with 25 or more employees: since July 2025, new hires receive in writing, before their first day, pay, hours and work location. Since January 2026, job postings must show the pay range, disclose any use of artificial intelligence in screening and cannot require “Canadian experience”. Interviewed candidates must hear back within 45 days.
- Accessibility (AODA): Ontario organizations with 20 or more employees file a compliance report every 3 years. The next one is due December 31, 2026.
Customer data privacy
Private businesses that collect personal information in commercial activity follow PIPEDA, the federal privacy law, outside Alberta, British Columbia and Quebec, which have their own laws. Quebec applies Law 25, phased in since 2022. In June 2026 the federal government introduced Bill C-36 to replace PIPEDA, but it is not law yet.
How long to keep records
Six years from the end of the last tax year the records relate to. If a return was filed late, the six years run from the filing date. Some records must be kept for as long as the corporation exists, such as the share register.
The calendar for a corporation with a December 31 year-end
When | What is due |
The 15th of every month | Payroll remittance for the previous month |
Last day of February | T4, T4A and T4 Summary; corporate balance of tax if not an eligible CCPC |
March 31 | Annual GST/HST return; balance of tax for an eligible CCPC |
June 30 | T2 and Ontario annual return |
60 days after the anniversary | Annual return and ISC with Corporations Canada, for federal corporations |
December 31, 2026 | AODA accessibility report, with 20 or more employees |
If you want to go beyond the calendar and set up internal policies, our guide on how to set up a compliance program walks through it. MB Tax handles GST/HST, payroll, T2 and annual returns for the businesses we serve. If you are not sure you are up to date, a conversation with our team will tell you.
Frequently Asked Questions (FAQ)
Meeting legal and tax obligations on time: GST/HST and corporate returns, payroll remittances and slips, annual returns to government, and employer rules such as WSIB and employment standards.
When taxable sales exceed CAD 30,000 in one calendar quarter or over the last four quarters combined. From then on, you have 29 days from the effective date of registration to register.
From 3% to 10% of the amount, depending on how late it is: 3% up to 3 days, 5% up to 5, 7% up to 7 and 10% beyond that. It generally applies only to the amount above CAD 500.
The list of individuals with significant control over the corporation. Federal corporations have filed it with Corporations Canada since January 2024, and part of it is public. Ontario corporations keep the register at their registered office without sending it to government.
Six years from the end of the last tax year they relate to. Some records, such as the share register, must be kept for as long as the corporation exists.
