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Dec 30, 2020 1:42 pm
Hi,
When a corporate pays out a bonus within 6 months after its fiscal year-end, this expense can be deducted for the previous fiscal year for the corporation.
But, there are related additions to that bonus by law - e.g. CPP (if eligible) and Vacation pay on the bonus.
Are these expenses, especially Vacation pay, also deducted from the previous fiscal year or from the year they were actually paid?
Thanks!
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Dec 31, 2020 2:33 pm
They are accrued and deducted in the previous fiscal period.