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- Record of Employments (“ROE’s”) - Need to prepare ROE’s for your employees?. You'll likely have to process ROE's online (Go here). If you’re not already registered for this service, you’ll have to go register your business online. Contact us for assistance registering your company. There is a delay of about a week until CRA sends out an authorization code for you to complete your registration.
- For those who are self-employed or normally exempt from contributing to EI and who are sick, self-isolating or caring for some else who is sick, you’ll be eligible for the Canada Emergency Response Benefit (“CERB”) program. You’ll have to enroll online through your CRA My Account. Funds are expected to be paid within about a week, depending on whether you are registered for direct deposit or not. We encourage you to check out the CERB link to determine your eligibility and how to apply. You will require information from your last filed personal tax return and your access will be delayed about a week until you obtain a verification code by mail. Please contact us should you require any information to assist you with this.
- The Canada Emergency Wage Subsidy (“CEWS”) is now enacted for employers. The CEWS is a taxable subsidy that will cover 75% of the gross pay of your employees, for three 4-week periods March 15 to June 6, 2020, up to $847 per week per employee. Eligible employers must demonstrate a year over year decline in revenues of 15% for March and a 30% reduction for April or May 2020. Revenue comparisons can also be compared with the average of January and February 2020. Non-arms' length employees are eligible, but must have been hired before March 15, 2020. Application will be made via CRA's My Business Account portal or a web-based application, which are both in progress of being set up. The application can be for any qualifying period before October 2020.
- Your business can utilized the 10% Temporary Wage Subsidy as a reduction of source deduction remittances. Any CEWS claim will be reduced by this subsidy.
- There are several deferrals in place, mainly for filing and paying personal tax returns and paying corporate income tax balances and instalments. Most federal tax deadlines have been extended to June 1st, with payment deadlines extended to August 31st. GST/HST remittances may also be deferred to June, however these returns still need to be filed on time.
- The Canada Emergency Business Account (“CEBA”) is an interest free loans of up to $40,000 to small businesses and not-for-profits, to help cover operating costs during a period where their revenues have been temporarily reduced. There is a possible forgivable portion of $10,000. Applications are processed through your existing bank. Applicants will require a business account and an annual payroll from $20,000 and up to $1.5 Million.
- The Business Credit Availability Program (“BCAP”) has been established to provide small and medium-sized businesses (“SME’s”) additional credit support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC), involving loan guarantees for new operating credit and cash flow term loans of up to $6.25 million to SME’s.
- The Canada Emergency Commercial Rent Assistance ("CECRA") provides government funding of up to 50% of gross commercial rent, with tenants responsible for no more than 25%. Applications are currently being processed through the CMHC. Non-arms-length commerical rentals with formal leases at market rates may apply as well.
- WSIB – all Ontario businesses covered by workplace insurance can now defer reporting and payments until August 31,2020.
We continue to monitor events evolving across Canada as the country continues its efforts to fight the health and economic effects of the Covid-19 virus pandemic.
Here are some of the essential updated government programs that we continue to be asked about:
We encourage clients to file their personal tax returns this month, especially if you’re expecting a refund or you’re claiming any Ontario benefits such as Trillium or GST credits. CRA is not delaying paying these out. If you owe tax then you’ll be able to better plan for paying this at the end of the deferral period.
You are welcome to upload your personal tax information to your secure Citrix ShareFile folder with the firm. If you do not have one or need to reinitialize your access, please let us know.