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Tax Savings - 2020
Up to $400 office in home deduction for employees may be available, without receipts or verification.
- The Canada Emergency Wage Subsidy (“CEWS”) is available to most employers as a subsidy to help cover up to 75% of the gross pay of your employees, currently for 10 4-week periods March 15 to December 19, 2020, up to $847 per week per employee. For the first four periods, eligible employers must demonstrate a year over year decline in revenues of 15% for March and a 30% reduction for April, May or June 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 is made via CRA's My Business Account portal or a web-based application. For periods starting after July 5th, the subsidy rates are adjusted depending on your drop in revenues. In the Federal government's Economic Statement in November, the CEWS wil increase to a 75% wages subsidy if 70% drop in revenue is experienced for periods December 20, 2020 to March 13, 2020. Please contact us for further details as to how to implement CRA's adjusted subsidy claims for these periods.
- The Canada Emergency Business Account (“CEBA”) is an interest free loan 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 forgivable portion of $10,000 if all terms and conditions are met. 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, or if under $20,000 of payroll, have between $40,000 and $1.5 Million of eligible non-deferrable expenses. Recent announcements intend on providing an additional loan of $20,000 of which $10,000 is intended to be foregivable.
- 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 Rent Subsidy ("CERS") provides basic funding of up to 65% of gross commercial rent, or other property carrying costs. An additional top-up claim is available for businesses unable to open. Application is made via CRA's My Business Account portal. Tenants paying rent to Arms-length landlords are eligible. Where businesses are paying rent to a related entity, special consolidated applications may be required. Please contact us to assist in such situations.
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:
Contact us for more detailed information on these programs or assistance with your online application for Government Subsidies.