August 31, 2020

For the 2020 tax year, the Canada Revenue Agency (CRA) will be introducing additional reporting for the T4 slip, Statement of Remuneration Paid.

How to report employment income during COVID-19 pay periods

For the tax year 2020, in addition to reporting employment income in Box 14 or Code 71, use new other information codes when reporting employment income and retroactive payments in the following periods:

        • Code 57: Employment income – March 15 to May 9

        • Code 58: Employment income – May 10 to July 4

        • Code 59: Employment income – July 5 to August 29

        • Code 60: Employment income – August 30 to September 26

Eligibility criteria for the CERB, CEWS, and CESB is based on employment income for a defined period. The new requirement means employers should report income and any retroactive payments made during these periods.

Example

If you are reporting employment income for the period of April 25 to May 8, payable on May 14, use code 58.

Online via My Business Account

Once you log in, select Manage direct deposit under Payroll:

Sign up through your Financial Institution

Log into your business bank account and you see a banner to enroll for direct deposit from the Canada Revenue Agency (you might have received an email from your bank as well)

You will need to enter your payroll account #: 12345 6789 RP000X

May 14, 2020

Applications open May 15, 2020 via CRA My Account.

IMPORTANT: Sign up for direct deposit through your Financial Institution to get funds faster!

Log into your bank account and you will see a banner to enroll for direct deposit from the Canada Revenue Agency).

For students who expect to complete high school between June 7 to December 31, 2020 – you are eligible for 2 periods only (July 5 to August 1 and August 2 to August 29).

https://www.canada.ca/en/revenue-agency/services/benefits/emergency-student-benefit/cesb-how-apply.html

Benefit:

• The payment will be $1,250/month or $2,000/month with dependents or if you have a disability
• will be made in respect of 4-week periods (May/ June/ July/ August) Deadline: Must apply by September 30, 2020

Deadline: Must apply by September 30, 2020

Conditions:

1. Must have met one of these three conditions:
   • been enrolled, at any time between December 1, 2019 and August 31, 2020, in a post-secondary educational program that leads to a degree, diploma or certificate;
   • graduated from secondary school in 2020, has applied for enrollment in such a post-secondary educational program that is scheduled to begin before February 1, 2021 and plans to enroll in the program if their application is accepted; or
   • is a member of a class of persons that is prescribed by regulation.
2. For reasons related to COVID-19 and whether as an employee or in self-employment, they are unable to work, are seeking work and unable to find it, or are working but are paid less $1,000, during the four-week period for which they apply for the benefit
3. They cannot receive any employment or self-employment income over $1,000, EI benefits, CERB, maternity/paternity benefits, or other prescribed income.

No interest is payable on any amount owing as a result of an erroneous payment or overpayment.

September 10, 2020

CECRA will be extended by one month to help eligible small businesses pay rent for September. Current CECRA application deadlines will also be extended to accommodate this extension.

August 21, 2020

If a property owner has been approved for rental assistance and is requesting the July and/or August extension, the deadline to submit the application is September 14, 2020.

        o The August extension is based on the existing program parameters for the April, May and June period. No new documents are needed to opt-in.  

        o Not all tenants in the original application need to be included in the request for the July and/or August extension.

        o Property owners can only opt-in once and no new tenants can be added.

August 4, 2020

CECRA is extended to August for those tenants approved in the April, May, June and July application.

If a business had an average revenue decline of 70% or more in April, May and June, they are deemed eligible for the additional month of rent relief.

If you have been approved for rental assistance and you are applying for the July and/or August extension, your deadline to submit your application is September 14, 2020.

If you have not yet submitted your application or are still creating it, your deadline to submit new applications that include the July and/or August extension is August 31, 2020.

July 30, 2020

The July Extension Opt-In is Now Available.

If you have previously been approved, you automatically qualify and no additional documents are required. You must log into the portal and opt-in for your impacted tenants. 

If you haven’t yet applied for CECRA for small businesses, you can apply for July as part of your entire application. 

May 21, 2020

Application open May 25, 2020.

We aren’t in June yet — should I wait to apply? 

No, you must apply for all 3 months at the same time and all impacted tenants must be included on a single application.

Your tenant can use forecasts for the month of June. The eligibility on the 70% factor will be determined on the average of April, May and then, forecasting June revenues.

Source: https://www.cmhc-schl.gc.ca/en/finance-and-investing/covid19-cecra-small-business

May 19, 2020

This program will lower rent by 75% for small businesses that have been affected by COVID-19.
CMHC will provide forgivable loans to eligible commercial property owners.
• The loans will cover 50% of the gross rent owed by impacted small business tenants during the 3-month period of April, May and June 2020.
• The property owner will be responsible for no less than half of the remaining 50% of the gross rent payments (paying no less than 25% of the total).
• The small business tenant will be responsible for no more than half of the remaining 50% of the gross rent payments (paying no more than 25% of the total).

Am I eligible?
Tenants: Contact your landlord

Landlords: To qualify for CECRA for small businesses, the property owner must meet the following requirements:

• own commercial real property occupied by one or more impacted small business tenants
• entered into a lease with the eligible tenant on or before April 1, 2020
• entered or will enter into a rent reduction agreement for the period of April, May, and June 2020, that will reduce impacted small business tenant’s rent by at least 75%. Ensure rent reduction agreement with impacted tenants includes:
• a moratorium on eviction for the period during which the property owner agrees to apply the loan proceeds, and
• a declaration of rental revenue included in the attestation Property owners with or without mortgages are eligible to apply.

What is an impacted small business tenant?
Impacted small business tenants are businesses, including non-profit and charitable organizations who:

• pay no more than $50,000 in monthly gross rent per location (as defined by a valid and enforceable lease agreement),
• generate no more than $20 million in gross annual revenues, calculated on a consolidated basis (at the ultimate parent level), and have experienced at least a 70% decline in pre-COVID-19 revenues Eligible small business tenants who are in sub-tenancy arrangements are eligible To measure revenue loss, small businesses can compare revenues in April, May and June of 2020 to that of the same month of 2019. They can also use an average of their revenues earned in January and February of 2020.

How do I apply?
Application portal to open later this month

What will you need for your application?

1. Attestations:
   a. Tenant or Sub-tenant Attestation – Click Here for Sample
   Each eligible tenant must attest to the meeting the program criteria (see What is an impacted small business tenant).

   b. Property Owner’s Attestation – Click Here for Sample
   Property Owner tenant must attest to the meeting the program criteria (see Am I Eligible?).

2. Agreements:
   a. Rent Reduction Agreement – Click Here for Sample
   Agreement with the eligible tenant to confirm rent reduction based on the program criteria.
   
   b. Forgivable Loan Agreement Property owner must agree to the terms and conditions outlined here.

3. Other Information:
   a. Property information: Property address, Property type, Property tax statement and latest rent roll and number of commercial units
   b. Applicant information: Banking information and Contact details
   c. Tenant information: Tenant contact information, Registered business name, Leased area and monthly gross rent for the period April, May, June 2020

What’s the deadline?
The deadline to apply is August 31, 2020.

Can a property owner whose small business is the only tenant apply?
YES, landlords and tenants who are not at arm’s length will be included in the program as long as there was a valid and enforceable lease agreement in place as at April 1, 2020 and the rent under the lease is at market rates.

How can the property owner use the CECRA funds?
In order of priority, funds can be used for:

1. Reimbursing the tenant for any rent paid above the 25% during the eligible period unless the tenant chooses to apply the previously paid rent against future rent,
2. Any costs and expenses relating directly to the property, including any financing held by the property owner operation and maintenance and repaid obligations (such as common costs of common area maintenance, property taxes, insurance and utilities)

When is the CECRA loan forgiven?
December 31, 2020.

Source: https://www.cmhc-schl.gc.ca/en/finance-and-investing/covid19-cecra-small-business

September 11, 2020

August 4, 2020

Disability Support

You do not have to apply to receive this payment. The CRA expects to issue the payments beginning this fall.

Non-filer benefit repayments

Filing of 2019 personal tax return prior to September is recommended.
Non-filers will have their estimated payments stop in October and may have to repay what was received in July, August, and September 2020.

CERB:

CERB is set to end September 26, 2020

July 30, 2020

Payment and Interest 
Payment due date for current year individual tax returns (including instalments): extended to September 30, 2020.
No further filing deadline extensions

CRA will be waiving interest on existing tax debts related to: 
    • individual income tax returns from April 1, 2020, to September 30, 2020
    • and from April 1, 2020, to June 30, 2020, for HST returns

June 15, 2020

Disability Support is: 

• one-time, tax-free, non-reportable payment of $600;
• Eligible persons include any who have 
    o     a Disability Tax Credit certificate provided by the Canada Revenue Agency;
    o     Canada Pension Plan disability benefit or Quebec Pension Plan disability benefit; and
    o     disability supports provided by Veterans Affairs Canada;
• if you are eligible for the Disability Tax Credit but have not yet applied, you must apply by September 25, 2020. 
• Seniors who are eligible for the one-time payment to persons with disabilities would receive a total of $600 in special payments.  

June 1, 2020

Canada Emergency Response Benefit:

Maximum number of periods that can be claimed is 6 four-week periods i.e. 24 weeks

Return or repay CERB if you no longer meet the eligibility via: 

• CRA My Account  

• Online Banking:

        o Sign in to your financial institution's online banking service
        o Under "Add a payee" look for an option such as: CRA (revenue) – tax instalment
        o Enter your 9 digit social insurance number (SIN) as the CRA account number

• By mail:
        o Mail a cheque or money order to the CRA:
        o Make the payment out to "Receiver General for Canada"
        o Indicate it is for "Repayment of CERB"
        o Indicate which eligibility period you are repaying
        o Include your Social Insurance Number (SIN) or your Temporary Tax Number (TTN)
        o Mail your payment:

            Revenue Processing – Repayment of CERB
            Sudbury Tax Centre
            1050 Notre Dame Avenue

            Sudbury ON P3A 0C3

April 27, 2020

Pandemic Pay

For front-line workers as part of a temporary pandemic payment to recognize their efforts in the fight against COVID-19 the government is providing:

• Additional $4/hour worked on top of their regular wages
• monthly lump sum payments of $250 for four months to eligible front line workers who work over 100 hours per month pay will be effective for 16 weeks, from April 24, 2020 until August 13, 2020

List of eligible workplaces and workers can be found here: https://www.canada.ca/en/department-finance/economic-response-plan.html

Canada Emergency Student Benefit (CESB)

• would provide support to students and new graduates who are:
  • not be eligible for the Canada Emergency Response Benefit (CERB) or Employment Insurance, or
  • unable to work due to COVID-19.
• benefit would provide $1,250 per month for eligible students or $1,750 per month for eligible students with dependents or disabilities
• benefit would be available from May to August 2020.

More details here: https://www.jarvisryan.com/admin/communications/21

https://www.canada.ca/en/department-finance/economic-response-plan.html April 15, 2020

n/department-finance/economic-response-plan.html

April 15, 2020

Canada Emergency Response Benefit (CERB):

Changes to the eligibility rules to:

• Allow people to earn up to $1,000 per month while collecting the CERB
• Extend the CERB to seasonal workers who have exhausted their EI regular benefits and are unable to undertake their regular seasonal work because of COVID-19
• Extend the CERB to workers who have recently exhausted their EI regular benefits and are unable to find a job because of COVID-19

Note: you must still meet the criteria: you stopped or will stop working due to COVID-19, and:

• You are applying for the first time

For at least 14 days in a row during the 4-week payment period, you do not expect to receive more than $1,000 (before taxes) from employment and self-employment income

• You are re-applying for another period

You do not expect your situation to change during this 4-week period and you do not expect to receive more than $1,000 (before taxes) from employment and self-employment income

A new temporary salary top-up for low-income essential workers:

The Federal government will work with provinces and territories through a new transfer to cost-share a temporary top up to the salaries of low-income workers (those who earn less than $2,500 per month on a full-time basis), that the provinces and territories have deemed essential in the fight against COVID-19.

More details will be released shortly.

April 9, 2020

Canada Emergency Response Benefit

To apply for the Canada Emergency Response Benefit via CRA My Account you do not need a security code.

You do not have to live in Canada to qualify but you have to be a tax resident of Canada

Ontario Child Support

Helping families pay for the extra costs associated with school and daycare closures during the COVID-19 outbreak by providing a one-time payment of $200 per child up to 12 years of age, and $250 for those with special needs, including children enrolled in private schools.

If previously registered for the strike days, this will automatically be paid otherwise have to apply.

Apply here: https://www.ontario.ca/page/get-support-families

April 2, 2019

Other Support Available:

Mortgage: A six- month mortgage deferral program implemented on a case-by-case basis for your primary residence. Contact your bank.

Rent: Discuss alternate arrangements with your landlord, if required. No deferral is mandated however no eviction orders will be issued until further notice.

Property Tax: Payment deferral options vary by municipality, contact your municipality for more information.

Filing and Payment Extension:

2019 tax return: Due June 1, 2020

Any new income tax balances due, or installments, to be deferred until September 1, 2020.

Canada Emergency Response Benefit:

To provide a taxable benefit of $2,000 a month for up to 4 months to:

• workers who must stop working due to COVID19 and do not have access to paid leave or other income support.
• workers who are sick, quarantined, or taking care of someone who is sick with COVID-19.
• working parents who must stay home without pay to care for children that are sick or need additional care because of school and daycare closures.
• workers who still have their employment but are not being paid because there is currently not sufficient work and their employer has asked them not to come to work.
• wage earners and self-employed individuals, including contract workers, who would not otherwise be eligible for Employment Insurance.

Apply via CRA My Account - Application will be available April 6th with first payment to start 10 days after application via cheque and 3-4 days via direct deposit.

Canada Child Benefit

An extra $300 per child for 2019-2020 - this benefit will be delivered as part of the scheduled payment in May 2020.

Special Goods and Services Tax credit payment

One-time special payment by early May for low- and modest-income families. Up to $400 for single individuals to $600 for couples.

There is no need to apply for this payment. If you are eligible, you will get it automatically.

You may be eligible to claim home office expenses on your 2020 return as your employer (in line with the rules) is requiring you to work from home. Hopefully for not more than a couple months but while in effect this deduction is available.

In order to claim this deduction, you will need:

1. Form T2200 Declaration of Conditions of Employment completed and signed by your employer

2. A summary of related costs you paid for that were not reimbursed for the work from home period. You can deduct the part of your costs that relates to your work space, such as the cost of electricity, heating, and maintenance. However, you cannot deduct mortgage interest, property taxes, home insurance, or capital cost allowance.

3. Percentage of work-space-in-the-home i.e. area of the work space divided by the total finished area

Source: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-229-other-employment-expenses/salaried-employees/work-space-home-expenses.html

BDC’s Small Business Loan (NEW May 7, 2020)

• Up to $100,000
• New clients and/or existing clients whose total debt with the bank is less than $100,000
• The following eligibility requirements must be met:
  • Based in Canada
  • Generating revenue for at least 24 months
  • Good credit history

Apply here: https://www.bdc.ca/en/financing/business-loans/pages/small-business-loan.aspx

Canada Emergency Business Account (CEBA)

• Up to $40,000
• Interest-free to December 31, 2022
• Repay by Dec 31, 2022 and receive 25% forgiveness
• You will need 2019 payroll of $50,000 to $1,000,000 to qualify.
  UPDATE: You will need 2019 payroll of $20,000 to $1,500,000 to qualify.
• For more information: Click Here | Application are available at your bank

May 20, 2020

Program will be expanded to:

• sole proprietors receiving income directly from their businesses
• businesses that rely on contractors
• family-owned corporations that pay employees through dividends rather than payroll

To qualify, these applicants with payroll lower than $20,000 would need:

• have a business bank account
• have a CRA business number, and to have filed a 2018 or 2019 tax return.
• have eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance.

June 18, 2020

Expanded program which was to commence June 19, 2020 was put on hold. Updates to come.

June 26, 2020

Expanded program available June 26, 2020.

September 10, 2020

Deadline for CEBA applications is extended from August 31 to October 31, 2020.

BDC Co-Lending Program for SMEs

• Business with revenue less than $1M: Up to $312,500
• Business with revenue between $1M - 50M: Up to $3,125,000
• Business with revenue $50M+ -Up to $6,250,000
• Medium-to long-term loans with amortizations up to 20 years.
• The following eligibility requirements must be met:
  • Be an existing Commercial Banking client and it is your primary bank.
  • Canadian business impacted by COVID-19.
  • The program is intended to support bridging businesses’ operating expenses (i.e., payroll, rent, utilities, taxes and other fixed costs), until cash flows resume back to pre-COVID conditions.

Apply via your bank

BDC Working Capital Loans

• Up to $2 million
• Flexible repayment terms such as principal postponement for qualifying businesses

Source: https://www.bdc.ca/en/pages/special-support.aspx

July 22, 2020

Proposed changes for period starting in July to December:

• If in Period 5 & 6 under the period 1 to 4 rules are better for you than the new proposed method of calculation, you can use the old method instead.
• Rate of CEWs will depend on the level of revenue decline:
  • Base subsidy (49% revenue drop)
  • And the Top-up subsidy (50% and over revenue drop)
• Base subsidy rate will be as follows:
  

Example 1: 20% decrease in sales and the employee makes $1,129. Available Base CEWs is $1,129 x 1.20 x 20% = $270.96

Example 2: 50% decrease in sales and the employee makes $1,129. Available Base CEWs is $1,129 x 60% = $677.00.

• Top up Subsidy rate will be as follows:
  • Revenue drop calculated when comparing revenues in the preceding 3 months to the same months in the prior year
  • Top up subsidy CEWs rate: (3-month revenue drop - 50%) x 1.25

• A 70% drop in revenue will result in the maximum base + top-up subsidy
• Combined base and top-up subsidy rates are as follows:

August 14, 2020

Further clarification:

• Filing deadline: January 31, 2021 (extended)
• Period 5 applications open August 17
• CEW is taxable in the period received (deemed received the last day of the period)
• You MUST use either cash or accrual consistently for Period 1 to 9 (no change in methodology permitted)
• You can elect per employee per claim period the optimum baseline:

• If the Period 1 to 4 rules are better for you than the new proposed method of calculation for Periods 5 & 6, you can use the old method instead.

This is per employee per week:

• Employees who are unpaid for 14 or more days can now be included in your calculation
• Use the current period's revenue drop or the previous period's, whichever works in your favour
• Online calculator and template now available: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-calculate-subsidy-amount.html 

September 10, 2020

June 26, 2020

June 22, 2020

June 18, 2020

• Step 1: Apply at your financial institution
• Step 2: You will be directed to a CEBA website to provide supporting documentation of the 2020 Eligible Non-Deferrable Expenses and to complete the application.

• The name of your bank;
• Your 9-digit business number; and
• Electronic or paper copies of Receipts / Invoices / Agreements to be uploaded as evidence of your 2020 Eligible Non-Deferrable Expenses.

• Wages and other employment expenses to independent (arm’s length) third parties;
• Rent or lease payments for real estate used for business purposes;
• Rent or lease payments for capital equipment used for business purposes;
• Payments incurred for insurance related costs;
• Payments incurred for property taxes;
• Payments incurred for business purposes for telephone and utilities in the form of gas, oil, electricity, water and internet;
• Payments for regularly scheduled debt service;
• Payments incurred under agreements with independent contractors and fees required in order to maintain licenses, authorizations or permissions necessary to conduct business by the Borrower.

May 20, 2020:

Program will be expanded to:
• sole proprietors receiving income directly from their businesses
• businesses that rely on contractors
• family-owned corporations that pay employees through dividends rather than payroll

To qualify, these applicants with payroll lower than $20,000 would need:
• have a business bank account
• have a CRA business number, and to have filed a 2018 or 2019 tax return.
• have eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance.

https://pm.gc.ca/en/news/news-releases/2020/05/19/prime-minister-announces-expansion-support-workers-and-small

April 16, 2020

Will now be available to businesses with payroll between $20,000 and $1.5 million in 2019.

April 9, 2020

All the banks now have the application available online. Completing the application will take less than a minute. You might have to wait few minutes given the volume of applications.

You will need: Employer payroll account number and Box 14 on your T4 Summary.

April 8, 2020

How to Apply?

ONLY online at your bank's website. Calling your branch will not help. Applications for BMO start April 9th, other banks will be soon/ same.

April 3, 2020

Canadian Emergency Business Account

The CEBA will provide qualifying business customers with access to a $40,000 line of credit with:

• An interest rate of 0% until Dec. 31, 2022
• No minimum monthly principal payments until Dec. 31, 2022
• Principal repayments made at any time
• A $10,000 loan forgiveness is available provided the outstanding balance is fully paid on or before Dec 31, 2022.

Eligibility

Only customers who meet each of the following criteria are eligible for the program:

• The person applying has the ability and authority to bind the organization.
• The organization is an operating business (i.e., not a holding company) in operation on March 1, 2020.
• The organization’s payroll expense in the 2019 calendar year was between $50,000 and $1 million. The customer must provide:
  • The employer account number (15 digits) as reported at the top of the customer's 2019 T4 Summary
  • Employment income reported in Box 14 of the 2019 T4
  • The customer's 2019 T4SUM when requested upon audit

Per the requirements of the program as set out by the Government of Canada, customers will agree to use funds from this loan to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, debt service, insurance and property tax.

Scotiabank will be issuing a bulk email to apply digitally next week as will the other Canadian banks.

Current details from some of the major banks can be found here:

Scotia: https://www.scotiabank.com/ca/en/personal/scotia-support/latest-updates/coronavirus-covid-19/business-banking.htm
CIBC: https://www.cibc.com/en/business/covid-19/emergency-business-account.html
RBC: https://www.rbc.com/covid-19/business.html

July 30, 2020

Corporate tax extension:
Payments date for current tax year (including instalments): extended to September 30, 2020.
No further filing deadline extensions

CRA will be waiving interest on existing tax debts related to:
    • corporate income tax returns from April 1, 2020, to September 30, 2020 
    • and from April 1, 2020, to June 30, 2020 for HST returns.

May 26, 2020

Corporations Tax Return -Filing date for current tax year:
• Returns due June 2 – August 31 – filing deadline of September 1, 2020.
• Returns due March 18 and June 1– filing deadline of June 1, 2020 (unchanged).

April 27, 2020

Canada Emergency Commercial Rent Assistance (CECRA)

This program will lower rent by 75% for small businesses that have been affected by COVID-19.

• will provide forgivable loans to qualifying commercial property owners to cover 50% of 3 monthly rent payments that are payable by eligible small business tenants during April, May, and June.
• loans will be forgiven if the mortgaged property owner agrees to reduce the small business tenants’ rent by at least 75% under a rent forgiveness agreement.
• small business tenants are businesses paying less than $50,000 per month in rent and who have temporarily ceased operations or have experienced at least a 70% drop in pre-COVID revenues. This support will also be available to non-profit and charitable organizations.

It is expected that CECRA will be operational by mid-May, and further details will be announced soon.

More information can be found here: https://www.jarvisryan.com/communications/20

April 16, 2020

New developments:

• Canada Emergency Business Account (CEBA) will now be available to businesses with payroll between $20,000 and $1.5 million in 2019
• Assistance to help small business pay commercial rents for April, May and June in the works. Details to come.

https://www.cbc.ca/news/politics/trudeau-business-supports-premiers-1.5534124

April 8, 2020

• SR&ED Filings are not affected by the filing extensions
• Corporate tax payments for current tax year: extended to September 1, 2020 (balances and installments due on or after March 18 and before September 1, 2020) for PART I tax only.
• If CRA account balances cannot be paid given COVID reasons, CRA will review fairness applications to waive interest on a case-by-case base.

April 4, 2020

EHT:

• Exemption: The Employer Health Tax (EHT) exemption for 2020 from $490,000 to $1 million. The EHT exemption will return to $490,000 on January 1, 2021.
• Tax filing and Remittance deadlines for EHT: remain the same. Relief applies by way of no penalties and interest applicable from April 1 to September 30, 2020

March 31, 2020

Corporate Tax Return – Filing and Payment Extension

Filing date for current tax year: extended to June 1, 2020 (corporations with a due date after March 18 and before June 1, 2020)

Payment date for current tax year: extended to September 1, 2020 (balances and installments due on or after March 18 and before September 1, 2020)

HST – Payment Extension

Payment remittance (including installments) requirement extended to June 30, 2020 for balances due after March 18 and before June 1, 2020.

WSIB - Filing and Payment Extension

Premium reporting and payment deferred to August 31, 2020.

Additionally, the WSIB will cease interest accrual on all outstanding premium payments. They will not charge penalties during this six-month deferral period.

Source: https://www.wsib.ca/en/financialrelief

Canada Emergency Business Account

Interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.

To qualify, these organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019.

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

March 30, 2020

Temporary Wage Subsidy:

“Businesses and non-profit organizations seeing a drop of at least 30 per cent in revenue due to COVID-19 will qualify for the government's 75 per cent wage subsidy program, Prime Minister Justin Trudeau announced today.

During the daily media briefing outside his residence at Rideau Cottage, Trudeau said the number of people a business employs will not determine its eligibility. Charities and companies big and small will qualify, he said.

For those companies experiencing a decrease in revenues of at least 30 per cent, the government will cover up to 75 per cent of a salary on the first $58,700, which could mean payments of up to $847 a week. The prime minister also encouraged businesses to top up their employee’s wages with the remaining 25 per cent of their salaries.

Trudeau said the wage subsidies will be retroactive to March 15, 2020.

More details of the program will be unveiled later today.”

Source: https://www.cbc.ca/news/politics/trudeau-covid19-business-supports-1.5514558

March 27, 2020

As the changes to the response to COVID-19 are constantly evolving we will continue to keep you posted with updates

1. The government will also guarantee bank loans of up to $40,000 for small businesses
2. HST payments are suspended to June.

August 14, 2020

• Filing deadline: January 31, 2021 (extended)
• Period 5 applications open August 17
• CEW is taxable in the period received (deemed received the last day of the period)
• You MUST use either cash or accrual consistently for Period 1 to 9 (no change in methodology permitted)
• You can elect per employee per claim period the optimum baseline:

• If the Period 1 to 4 rules are better for you than the new proposed method of calculation for Periods 5 & 6, you can use the old method instead. This is per employee per week.

• Employees who are unpaid for 14 or more days can now be included in your calculation
• Use the current period's revenue drop or the previous period's, whichever works in your favour
• Online calculator and template now available: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-calculate-subsidy-amount.html  

July 30, 2020

July 22, 2020

Proposed changes for period starting in July to December:

• If in Period 5 & 6 under the period 1 to 4 rules are better for you than the new proposed method of calculation, you can use the old method instead.
• Rate of CEWs will depend on the level of revenue decline:
  • Base subsidy (49% revenue drop)
  • And the Top-up subsidy (50% and over revenue drop)
• Base subsidy rate will be as follows:
  

Example 1: 20% decrease in sales and the employee makes $1,129. Available Base CEWs is $1,129 x 1.20 x 20% = $270.96

Example 2: 50% decrease in sales and the employee makes $1,129. Available Base CEWs is $1,129 x 60% = $677.00.

• Top up Subsidy rate will be as follows:
  • Revenue drop calculated when comparing revenues in the preceding 3 months to the same months in the prior year
  • Top up subsidy CEWs rate: (3-month revenue drop - 50%) x 1.25

• A 70% drop in revenue will result in the maximum base + top-up subsidy
• Combined base and top-up subsidy rates are as follows:

July 13, 2020

Program to be extended to December 2020

June 22, 2020

Proposed period 4 (June 2020) reduction is 30%
Period 5 & 6 are being reviewed
https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-frequently-asked-questions.html

May 20, 2020:

• The CEWS program will be extended three months to the end of August 2020 and the 30% required revenue decrease is being reviewed for the expanded period
• Can elect the 10% Temporary Wage Subsidy to be 0% on CEWs to receive a 100% of the subsidy. Must indicate the 0% election on the self-identification form under the 10% temporary wage subsidy program. 
  

• flexibility for employers of existing employees who were not regularly employed in early 2020, such as seasonal employees. This includes a proposal that an option would be added to calculate baseline remuneration as the average weekly remuneration paid to the employee from March 1 to May 31 of 2019;
• to have CEWs apply to corporations formed on the amalgamation of two predecessor corporations

May 8, 2020

Program to be extended past June 6 expiry date.

CBC Article: Click Here

April 21, 2020

Applications to be released April 27, 2020.

We (JRA) can make the application for you via Represent a Client.

CRA has launched a CEWS Calculator for Employers, this can be accessed at: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-calculate-subsidy-amount.html

April 16, 2020

Applications will be due September 30, 2020.

April 9, 2020

For cash flow purposes it might make sense for you to commence by taking the 10% Wage Subsidy.

The CEWS application is set to take 3-6 weeks to be rolled out and the CEWS subsidy will be reduced by the 10% subsidy dollar for dollar.

April 13, 2020

This would provide a 75% wage subsidy to eligible employers for up to 12 weeks, retroactive to March 15, 2020.

Am I Eligible?

Eligible employers would include individuals, taxable corporations, and partnerships consisting of eligible employers as well as non‑profit organizations and registered charities.

This subsidy would be available to eligible employers that see a drop of at least 15% of their revenue in March and 30% for the following months (see Eligible Periods).

How is the drop in revenue calculated?

An employer’s revenue for this purpose would be its revenue from its business carried on in Canada earned from arm’s-length sources. Revenue would be calculated using the employer’s normal accounting method and would exclude revenues from extraordinary items and amounts on account of capital.

Employer can calculate revenues under the accrual or cash method, but not a combination of both.

Special rules for the computation of revenue are provided to take into account certain non-arm's length transactions, such as where an employer sells all of its output to a related company that in turn earns arm's length revenue. As well, affiliated groups are able to compute revenue on a consolidated basis.

Eligibility period:

Hence the options available are:

1. calculate revenues under the accrual or cash method 2. And either compare: a. Monthly revenue year-over year or b. Each month with the average of January and February 2020

Once the method is selected you are required to use the same approach for the entire duration of the program. The application will likely be available in May hence you will be able to calculate which option works best for you.

How do I calculate the Subsidy?

The subsidy amount for a given employee on eligible remuneration paid for the period between March 15 and June 6, 2020 would be the greater of:

• 75% of the amount of remuneration paid, up to a maximum benefit of $847 per week; and
• the amount of remuneration paid, up to a maximum benefit of $847 per week or 75% of the employee’s pre-crisis weekly remuneration, whichever is less.

In effect, employers may be eligible for a subsidy of up to 100% of the first 75% of pre-crisis wages or salaries of existing employees.

The pre-crisis remuneration for a given employee is based on the average weekly remuneration paid between January 1 and March 15 inclusively, excluding any seven-day periods in respect of which the employee did not receive remuneration.

A special rule will apply to employees that do not deal at arm’s length with the employer. The subsidy amount for such employees will be limited to the eligible remuneration paid in any pay period between March 15 and June 6, 2020, up to a maximum benefit of the lesser of:

• $847 per week or
• 75% of the employee’s pre-crisis weekly remuneration

What about the employer-paid contributions?

A new 100% refund for certain employer-paid contributions to Employment Insurance and the Canada Pension Plan has been introduced. This refund covers 100% of employer-paid contributions for eligible employees for each week throughout which those employees are on leave with pay and for which the employer is eligible to claim for the CEWS for those employees.

For greater certainty, employers are required to continue to collect and remit employer and employee contributions to each program as usual. Eligible employers apply for a refund, as described above, at the same time that they apply for the CEWS.

Which employees are eligible?

An eligible employee is an individual who is employed in Canada.

Employees who have been without remuneration for 14 or more consecutive days in the eligibility period, i.e., from March 15 to April 11, from April 12 to May 9, or from May 10 to June 6 are NOT eligible.

Where do I Apply?

Apply through the Canada Revenue Agency’s My Business Account portal.

Follow instruction on setting this up here: https://www.jarvisryan.com/help/categories/1/articles/12

Employers would have to keep records demonstrating their reduction in arm’s-length revenues and remuneration paid to employees. More details about the application process will be made available shortly.

What about the 10% Wage Subsidy?

For employers that are eligible for both the Canada Emergency Wage Subsidy and the 10% wage subsidy for a period, any benefit from the 10% wage subsidy for remuneration paid in a specific period would generally reduce the amount available to be claimed under the Canada Emergency Wage Subsidy in that same period.

What about the Work-Sharing Program?

For employers and employees that are participating in a Work-Sharing program, EI benefits received by employees through the Work-Sharing program reduce the benefit that their employer is entitled to receive under the CEWS.

How does the subsidy get treated?

The subsidy received is considered government assistance and is included in the employer’s income.

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

https://www.blogto.com/eat_drink/2020/03/toronto-pizza-restaurant-washing-all-their-cash-ensure-its-disinfected-customers/

April 9, 2020

To apply for the Canada Emergency Response Benefit via CRA My Account you do not need a security code.

In order to maintain your My Account (which expires without usage in 365 days):

1. Sign up for Paperless Mail and access CRA mail faster
2. Set a reminder to sign into your account every 6 months

April 2, 2020

Accessing the government programs corporately and personally requires a CRA My Account.

You can then access Service Canada’s My Service Canada Account and apply for any applicable social benefits

• CRA My Account: https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html

Once you have proceeded through the registration process, you will be mailed an access or activation code.

If you are also a business owner you will be able to add your business so that you may access it through the CRA My Business Account.

April 9, 2020

Am I an eligible employer?

You are an eligible employer if you:

• are a non-profit organization, registered charity, or a Canadian-controlled private corporation (CCPC);
• have an existing business number and payroll program account with the CRA on March 18, 2020; and
• pay salary, wages, bonuses, or other remuneration to an employee.

Additionally:

• The company must have had a small business deduction limit greater than nil allocated in the prior year

• CCPCs are only eligible for the subsidy if their taxable capital employed in Canada for the preceding taxation year, calculated on an associated group basis, is less than $15 million.

Separate subsidy per employer (associated employer rules don’t apply).

How much is the subsidy?

The subsidy is equal to 10% of the remuneration you pay between March 18, 2020, and June 20, 2020, up to $1,375 per employee and to a maximum of $25,000 total per employer. Please know payroll must continue and be paid in order to take advantage of this subsidy, if you stop payroll this is not available.

An annual salary of $55,000 per employee will result in getting the maximum benefit.

Owner Payroll:

If you do not get a regular pay cheque this will not work for you. Clients that do lump sum payments should consider going on regular payroll effective immediately until June 20, 2020.

In order for you to take advantage of this subsidy with your personal payroll – your gross payroll paid needs to be $13,750 over March 18, 2020, and June 20, 2020 in order to receive the maximum subsidy of $1,375.

How will I receive the subsidy?

The subsidy is claimed by reducing the tax portion of your monthly remittance. It cannot be applied against the CPP and EI.

When can I start reducing remittances?

You can start reducing your source deduction remittances in the first remittance period that includes remuneration paid between March 18, 2020, and June 20, 2020.

If you use a payroll service please advise them of your qualification.

How do I calculate the subsidy?

The subsidy is claimed by reducing the income tax portion of your remittance ONLY by the minimum of the 3 amounts:

• Maximum per employer of $25,000
• Fixed rate of 10% of the remuneration paid to eligible employees during the eligible period
• Total number of eligible employees multiplied by a fixed amount of $1,375

NOTE: An eligible employee means the employee must be “employed” on the date of the eligible payment.

For example, if you have 5 employees earning monthly salaries of $4,100 (assumes all are under $55K annually) for a total monthly payroll of $20,500, the subsidy would be 10% of $20,500, or $2,050.

Worksheet to calculate subsidy: Click Here

For more information: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html

CANADA’S COVID-19 ECONOMIC RESPONSE PLAN – KEY POINTS FOR BUSINESSES AND INDIVIDUALS

Since the beginning of March, restrictions and measures related to COVID-19 have rapidly escalated. While the first stages focused on public health and safety, in very short order, businesses and personal finances began to be affected. It is clear that these challenges will become worse before they get better. In an effort to combat these effects, the Government of Canada released a series of financial measures in mid-March.

This document summarizes selected government comments up to March 18, 2020.

Individuals

Tax Return Due Date Deferral: The personal tax filing due date will be deferred until June 1, 2020. However, those expecting refunds or benefits (such as the GST/HST credit, Guaranteed Income Supplement and Canada Child Benefit) should file as early as possible. The government release encourages Canadians not to delay their filings in order to ensure their income-tested benefits are accurately computed.

Tax Payment Deferral: Taxpayers may defer, until after August 31, 2020, the payment of income tax amounts that become owing on or after March 18, 2020 (also including installments) and before September 2020. The government documents indicate that payment will be deferred “until after August 31, 2020”, which seems to imply payment will be due on September 1. No interest or penalties will accumulate on these amounts during this period.

Individuals Without Paid Sick Leave: For Canadians without paid sick leave (or similar workplace accommodation) who are sick, quarantined or forced to stay home to care for children, the government is:

• Waiving the one-week waiting period for those in imposed quarantine that claim Employment Insurance (EI) sickness benefits, effective March 15, 2020.

• Waiving the requirement to provide a medical certificate to access EI sickness benefits.

• Introducing the Emergency Care Benefit providing up to $900 bi-weekly, for up to 15 weeks (comparable to EI sickness benefit). This benefit would provide income support to:

An Emergency Support Benefit will provide up to $5.0 billion in support to workers o workers, including the self-employed, who are quarantined or sick with COVID-19 but do not qualify for EI sickness benefits;

• Implementing changes to the EI Work Sharing Program, which provides EI benefits to workers, including the self-employed, who are taking care of a family member who is sick with COVID-19, such as an elderly parent, but do not quality for EI sickness benefits; and

• To parents with children who require care or supervision due to school closures, and are unable to earn employment income, regardless of whether they qualify for EI or not.

Application for the Benefit will be available in April 2020, and require Canadians to attest (and continue to attest every two weeks) that they meet the eligibility requirements. Individuals can apply through CRA’s MyAccount, their My Service Canada Account, or by calling an automated toll-free number not yet released.

Longer-Term Income Support

• An Emergency Support Benefit will provide up to $5.0 billion in support to workers who are not eligible for EI and who are facing unemployment. The individual amounts and process will be disclosed shortly.

• Implementing changes to the EI Work Sharing Program, which provides EI benefits to workers who agree to reduce their normal working hour as a result of developments beyond the control of their employers, by extending the eligibility of such agreements to 76 weeks, easing eligibility requirements, and streamlining the application process.

Low/Modest Income Individuals

• A one-time special payment by early May 2020 through the Goods and Services Tax credit (GSTC) will be made. This will double the maximum annual GSTC payment amounts and result in an average boost to income for those benefiting by close to $400 for single individuals and close to $600 for couples.

• The maximum annual Canada Child Benefit payment amounts would be increased by $300 per child for the 2019-20 benefit year. This will be added to the May, 2020 benefit cheque.

Canadians Abroad

The Emergency Loan Program for Canadians Abroad will provide the option of an emergency loan to Canadians in need of immediate financial assistance to return home or to temporarily cover their life-sustaining needs while they work toward their return. Each application will be assessed according to their specific situation and needs. This emergency assistance is a repayable loan. Eligible Canadians currently outside Canada and needing help to return home can contact the nearest Government of Canada office (https://travel.gc.ca/assistance/embassies-consulates) or Global Affairs Canada’s 24/7 Emergency Watch and Response Centre in Ottawa at +1 613-996-8885 (collect calls are accepted where available) or email sos@international.gc.ca.

Students

A six-month interest-free moratorium on the repayment of Canada Student Loans for all individuals currently in the process of repaying these loans will be provided.

• Minimum RRIF Withdrawals: The required minimum withdrawals from Registered Retirement Income Funds (RRIFs) will be reduced by 25% for 2020. Similar rules would apply to individuals receiving variable benefit payments under a defined contribution Registered Pension Plan.

BUSINESSES

Tax Payment Extension: Businesses may defer, until after August 31, 2020, the payment of income tax amounts that become owing on or after March 18, 2020 and before September 2020. This relief would apply to tax balances due, as well as installments. No interest or penalties will accumulate on these amounts during this period.

Other Payment and Filing Extensions: No comment was made about changing the filing and payments dates for payroll, GST/HST, and other non-income tax items.

CRA Audit Activity: CRA will not contact any small or medium businesses to initiate any post assessment GST/HST or Income Tax audits for the next four weeks. For the vast majority of businesses, the CRA will temporarily suspend audit interaction with taxpayers and representatives.

Liaison Officer Service: The Liaison Officer service is now available over the phone and will be customizing information by ensuring small businesses are aware of any changes such as filing and payment deadlines, proactive relief measures, etc.

Payroll Subsidies: The government is proposing to provide eligible small employers a temporary wage subsidy for a period of three months. The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum of $1,375 per employee and $25,000 per employer. Businesses will benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities.

OTHER FILINGS AND ADMINISTRATION

Trust Filing Due Date Deferral: For trusts having a taxation year ending on December 31, 2019, the return filing due date will be deferred until May 1, 2020.

T3 Slips Submission Date: No specific statement was made regarding the deadline for filing T3 slips reporting income taxable to the trust beneficiaries.

Other Returns: Many taxpayers are required to file other tax and information returns. No mention was made of these, including partnership returns and NR4 reporting slips.

EFILE Signatures**: In order to reduce the necessity for taxpayers and tax preparers to meet in person, effective immediately the CRA will recognize electronic signatures** as having met the signature requirements of the Income Tax Act, as a temporary administrative measure. This provision applies to authorization forms T183 or T183CORP.

Financial Assistance

Individuals: Canada’s large banks have confirmed that this support will include up to a 6-month payment deferral for mortgages, and the opportunity for relief on other credit products. Banks have affirmed their commitment to working with customers to provide flexible solutions, on a case-by-case basis, for managing through hardships caused by recent developments. This may include situations such as pay disruption, childcare disruption, or illness.

Businesses

• The Business Credit Availability Program will allow the Business Development Bank of Canada and Export Development Canada to provide more than $10 billion of additional support, largely targeted to small and medium-sized businesses. The near-term credit available to farmers and the agri-food sector will also be increased through Farm Credit Canada.

• The Office of the Superintendent of Financial Institutions (OSFI) announced it is lowering the Domestic Stability Buffer by 1.25% of risk-weighted assets, effective immediately. This action will allow Canada’s large banks to inject $300 billion of additional lending in to the economy.

• For Exporters: The Minister of Finance would now be able to determine the limit of the Canada Account in order to deal with exceptional circumstances. The Canada Account is administered by Export Development Canada (EDC) and is used by the government to support exporters when deemed to be in the national interest.

• Interest Rates: The Bank of Canada cut the prime interest rate to 0.75%. Other banks have also reduced rates.

Other Funding

• Indigenous Community: $305 million for a new distinctions-based Indigenous Community Support Fund will be provided to address immediate needs in First Nations, Inuit, and Métis Nation communities.

• Homelessness: The Reaching Home initiative will be provided with $157.5 million to continue to support people experiencing homelessness during the COVID-19 outbreak. The funding could be used for a range of needs such as purchasing beds and physical barriers for social distancing and securing accommodation to reduce overcrowding in shelters.

• Domestic Abuse Shelters: Women’s shelters and sexual assault centers will receive $50 million to help with their capacity to manage or prevent an outbreak in their facilities.

Closing

Many of the measures listed above have only been announced recently (March 18, 2020) and are noted as requiring Royal Assent. In recent public comments, it was indicated that the opposition parties have promised their support to move these measures quickly, therefore, we can presumably expect draft legislation in the short term.

Over the next days and weeks, the specifics on these programs will be released. Most of the details for these initiatives will be released on one of these four webpages:

General: https://www.canada.ca/en/public-health/services/diseases/2019-novel-coronavirus-infection/canadas-reponse.html

CRA: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update.html

Travel: https://travel.gc.ca/assistance/emergency-info/financial-assistance/covid-19-financial-help

Employment and Social Development Canada: https://www.canada.ca/en/employment-social-development/corporate/notices/coronavirus.html

As the situation develops further, there may be additional government measures, or modifications to those already announced.

The preceding information is for educational purposes only. As it is impossible to include all situations, circumstances and exceptions in a newsletter such as this, a further review should be done by a qualified professional.

No individual or organization involved in either the preparation or distribution of this letter accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.

CRA now has the ability to withdraw a specified amount from your bank account on the date you specify (April 30th most likely).

To do this, you need to complete in Part G of the T183 form - pre-authorized debit agreement.

You can specify the account for which you prefer the pre-authorized debit to come from on the T183 or select an account the CRA may already have on file for your for direct deposit.

Please note that the CRA requires at least 5 business days to process the PAD. Therefore, if you choose to have your PAD taken from your bank account on April 30th, your return MUST be filed no later than April 24, 2019.

1. The 2020 cumulative lifetime capital gains exemption is $883,384.00

2. The Medical expense tax credit has been expanded to allow expenses related to service animals who are specially trained to perform specific tasks for a patient with a severe mental impairment that helps the patient cope with the impairment. Eligible expenses paid in 2018 include the cost of the animal, the care and maintenance of the animal (food and veterinary care), reasonable travel expenses paid for the patient to attend a school, institution, or other facility that trains in the handling of these animals, and reasonable board and lodging expenses paid for the patient's full-time attendance at a school, institution, or other facility that trains in the handling of such animals.

3. The Climate Action Incentive (CAI) payment can be claimed by eligible individuals who are residents of Saskatchewan, Manitoba, Ontario or New Brunswick. A new Schedule 14 will be included with the T1 package for these jurisdictions; simply complete the new schedule to claim the amounts you may be entitled to based on your family composition, and indicate the amount on line 449 of your income tax and benefit return. The CAI payment will first reduce any balance owing, and may create or increase your refund. A 10% CAI supplement is available to residents of small and rural communities who live outside a Census Metropolitan Area (CMA), as defined by Statistics Canada.

1. The 2018 cumulative lifetime capital gains exemption is $848,252.

2. Starting with the 2016 taxation year, individuals who sell their principle residence will have to report the sale on their tax return. Reporting will be required for sales that occur on or after January 1, 2016 but there is likely no tax implications.