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Updates from Burlington Tax Services

COVID-19 Update #3 from Burlington Tax Services

 

There continues to be ongoing information and announcements related to the COVID-19 pandemic. I have summarized some of the programs/information/announcements (but because of the changes are happening so quickly, my summary may not be accurate.  Please double check with the original source of the program/information/announcement before making any decisions):

 

FOR INDIVIDUALS

 

New tax filing and payment due dates

The deadline for filing individual tax returns has been extended to June 1, 2020. Taxpayers will have until September 1, 2020 to pay any 2019 income tax amounts owed.

Canada Emergency Response benefits

You will be able to apply for the new Canada Emergency Care benefits (“CERB”) in CRA’s MyAccount (login at https://www.canada.ca/en/revenue-agency/services/e-services/cra-login-services.html) or using the dedicated phone line at 1-800-959-2019 starting April 6, 2020.

 

If you were born in the months January, February or March – apply April 6

If you were born in the months April, May or June – apply April 7

If you were born in the months July, August or September – apply April 8

If you were both in the months October, November or December –apply April 9

Friday, Saturday and Sunday will be open for any months

 

The CERB will pay $2,000 a month for 4 months to individuals who have lost income because of the COVID-19.  Self-employed qualify for this benefit as well.

 

To qualify for the CERB, you:

Live in Canada and be at least 15 years old;

Stopped working because of COVID-19 or you are eligible for EI regular or sickness benefits and have not voluntarily quit your job;

Do not expect to work again for at least 14 consecutive days in the initial 4 week period and have no income after the initial 4 week period;

Had income (employment, self-employed, parental leave and other income to be specified) of at least $5,000 in 2019 or in the 12 months prior to applying.

https://www.canada.ca/en/services/benefits/ei/cerb-application.html

Note: CERB received is taxable i.e. taxable income on your 2020 tax return.

 

FOR BUSINESSES

New tax filing and payment due dates

The deadline for businesses to pay any income tax amounts that become owing or due after March 18, 2020 and before September 1, 2020 has been extended to September 1, 2020. This means you will not be assessed any penalties or interest if your income tax amounts owed is paid by September 1, 2020.

 

Canada Emergency Wage Subsidy (“CEWS”) and the Temporary wage subsidy for employers

The Government of Canada announced temporary wage subsidies for employers depending if your revenues declined at least 30% compared to the same month last year.

Yes, revenues declined at least 30%:

You qualify for the CEWS which is a 75% wage subsidy calculated as the greater of:

75% of salary for a period of three months up to a maximum benefit of $847 per week as long as the employer keeps employees employed; or

Lesser of salaries paid up to a maximum benefit of $847 per week or 75% of employee’s pre-crisis weekly salary

https://www.canada.ca/en/department-finance/economic-response-plan/wage-subsidy.html

 

No, revenues have not declined 30%:

You qualify for the Temporary wage subsidy which allows employers to reduce the amount of payroll deductions required to be remitted to CRA by 10% of the remuneration you pay from March 18, 2020 to June 19, 2020, up to $1,375 for each eligible employee and to a maximum of $25,000 total per employer.

Note: This subsidy must be reported as income in which the subsidy is received.

 

Canada Emergency Business Account

The Government of Canada will provide interest-free loans of up to $40,000 to help cover your operating costs when your revenues have been reduced by 30% due to the economic impacts of the COVID-19 virus.

To qualify, businesses will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019. Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).

 

Export Development Canada and Business Development Bank

Both Export Development Canada (“EDC”) and Business Development Bank (“BDB”) are offering loan programs to help small and medium-sized businesses with operational cash flow requirements.  EDC and BDB will guarantee loans when businesses go to their financial institutions.

https://www.canada.ca/en/department-finance/programs/financial-sector-policy/business-credit-availability-program.html

Find more information on tax measures to help support Canadians during the COVID-19 pandemic is available at https://www.canada.ca/en/department-finance/economic-response-plan.html.

 

Additional information sourced from www.canada.ca/en/revenue-agency/

If you have any questions, please contact us at info@butx.com or (905) 634-5605.

 

 

COVID-19 Burlington Tax Services Update #2

Government programs/announcements

With all of the recent information and announcements related to the COVID-19 pandemic, we have summarized some of the programs/information/announcements.  As changes are happening quickly, our summary may not always be up to date.  Please double check with the original source of the program/information/announcement:

New tax filing and payment due dates

The deadline for filing individual tax returns has been extended to June 1, 2020. Taxpayers will have until September 1, 2020 to pay any 2019 income tax amounts owed.

The deadline for businesses to pay any income tax amounts that become owing or due after March 18, 2020 and before September 1, 2020 has been extended to September 1, 2020. This means you will not be assessed any penalties or interest if your income tax amounts owed is paid by September 1, 2020.

Outstanding balances owed to CRA

CRA will not be sending any Requirements to Pay (“RTP”) to employers. For RTPs currently in place, remittances are not required, until further notice. The CRA also requests that any RTPs that you may receive this week not be actioned.

Canada Emergency Response benefits

You will be able to apply for the new Canada Emergency Care benefits (“CERB”) in My Account (login at https://www.canada.ca/en/revenue-agency/services/e-services/cra-login-services.html) or using the dedicated phone line starting April 2020.

The CERB will pay $2,000 a month for 4 months to individuals who have lost income because of the COVID-19.  Self-employed will qualify for this benefit as well.

The CERB would cover Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The CERB would apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI).

Temporary wage subsidy for employers

The Government of Canada announced a Temporary wage subsidy for employers up to 75% of salary for a period of three months as long as the employer keeps employees employed.

In addition, effective from March 28, 2020, to June 20, 2020, eligible employers can reduce remittances of federal, provincial, or territorial income tax by the amount of the subsidy. This measure only applies to remittances made to the Canada Revenue Agency (“CRA”).

Canada Emergency Business Account

The Government of Canada will provide interest-free loans of up to $40,000 to help cover your operating costs while your revenues have been temporarily reduced due to the economic impacts of the COVID-19 virus..

To qualify, businesses will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019. Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).

Export Development Canada and Business Development Bank

Both Export Development Canada (“EDC”) and Business Development Bank (“BDB”) are offering loan programs to help small and medium-sized businesses with operational cash flow requirements.  EDC and BDB will guarantee loans when businesses go to their financial institutions.

Find more information on tax measures to help support Canadians during the COVID-19 pandemic is available at https://www.canada.ca/en/services/benefits/ei.html.

Information sourced from www.canada.ca/en/revenue-agency/

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