COVID-19 Information

We encourage you to file your personal income tax return as soon as possible to make sure your benefits continue.

Do you have CRB enquiries? Call 1-833-966-2099

Tax Deadline and Payment Deadline Changes

 

Individuals - The deadlines to file and pay your personal income tax for 2019 have now passed. You will receive notices requiring repayments of benefits that you have received from the Canada Revenue Agency starting in October 2020 if you do not file. If you have filed and are not able to pay due to financial hardship, you should call CRA collections to make payment arrangements.

Businesses

Corporations - The federal and Alberta deadline for corporations to file and pay any income tax amounts owing have now passed. Interest began accruing on October 1, 2020 and late filing penalties will be assessed for any corporations with a year end date of March 31, 2020 or prior that has not been filed. No further filing extensions have been announced.

GST/HST - The deadline to file returns remains the same. Payments that would have been due starting March 27, 2020 and up to the end of June 2020 were due by June 30, 2020. If you are unable to make these required payments, you may be able to request interest relief from the Canada Revenue Agency. This link may help.

 

WCB - The Government of Alberta announced measures to provide financial support to help employers through the challenges of the global COVID-19 pandemic.

These measures include a deferral of 2020 WCB premium payments for all private sector employers until 2021. When invoicing resumes in 2021, small and medium-sized employers (those with $10 million or less in insurable earnings) will only be required to pay 50 per cent of their 2020 premiums – the other 50 per cent will be paid by the Government of Alberta.

 

Alberta Small and Medium Enterprise Relaunch Grant - Starting June 29, 2020, the Alberta Government is offering a grant worth up to $5,000 to businesses who experienced at least a 50% drop in revenues due to COVID-19 and have re-opened or plan to re-open soon. Apply here.

 

CanExport Grant - this grant requires $100,000 to $100 million in revenue for your business. Normally they are providing funds to expand into the global market but with the pandemic they are providing grants to help with e-commerce. See the details here.
 

Wage Subsidy Programs:

Canada Emergency Wage Subsidy (CEWS) (commonly called the 75% subsidy)

The deadline to apply for this subsidy (for all periods) is the later of January 31, 2021 or 180 days after the end of the period. An extension of this program to June of 2021 was announced in the Throne Speech. Details to come.

Periods 1 to 4 (March 15 to July 4, 2020)

  • You are a Canadian employer and you have experienced at least a 15% reduction in revenue for March (first month test) or 30% for April, May or June (subsequent month tests). It can be compared to the same month in the prior year or the average of January and February 2020. You can also choose if you will compare based on accrued or cash method. When you meet the qualification for a month, the following month you will automatically qualify.

  • The subsidy will not exceed 75% of pre-crisis remuneration based on the average weekly amounts paid January 1 to March 15 (maximum $847/week/employee)

  • The subsidy can apply to owner-managers who meet the requirement to be on the payroll January 1 to March 15

  • An additional subsidy is available for employers who have their employees on paid leave during the crisis to also be reimbursed for 100% of the employer portion of CPP and EI

  • Calculations are tricky and penalties for gaming the system are high so be sure to be informed and correctly make your applications

  • You will need to re-apply each month that you qualify

Periods 5 and forward (July 5 to December 19, 2020)​

  • The calculations become even more in depth and special care needs to be taken to determine reasonable claims

  • The revenue drop requirement has changed to "any reduction" and the subsidy is based on the percentage of revenue reduction

  • If the revenue decline is more than 50%, there is an additional subsidy (25% top up)

  • The base wages will need to be recalculated and is based on the percentage of revenue drop each period

  • For periods 5 and 6 (July and August) you can choose to use the Period 1-4 rules if the subsidy would be more under these rules

  • You can use this estimator to determine if you may have a claim and potentially how large it might be

Temporary Emergency Wage Subsidy (TEWS) (commonly called the 10% subsidy)

  • This program ran from March 18 to June 19

  • All of our clients who have small businesses qualify for this subsidy 

  • If you did not take advantage of this subsidy, you can still do so now or wait to calculate it at the end of the year and receive a refund of over-remitted payroll remittances

  • There is a requirement to file a PD27 form by employers who were eligible to make this claim. CRA is recommending to file this form as soon as possible.

Neither subsidy applies for contractor payments

Both subsidies will be taxable when the income tax return is filed

Canada Emergency Rent Support (CERS)

  • This is the new program for those renting commercial space or with a mortgage on a commercial space

  • The program will begin September 27, 2020 and run until June of 2021

  • Applications will begin to be accepted on November 23

  • Details of this program can be found on this site

Canada Emergency Business Account (CEBA)

  • Starting April 9, eligible businesses may apply for an interest-free business loan through your financial institution

  • It is interest-free until December 31, 2022 and eligible for 25% complete forgiveness if 75% of the loan is repaid fully on or before this date

  • If it is not repaid by this date, it can be extended for a 3-year term with a 5% interest rate

  • The criteria to be eligible requires that the business had between $20,000 and $1.5M of gross payroll in 2019

  • In October 2020, the government announced an additional loan of up to $20,000 with half of it forgivable for businesses affected by COVID-19

  • If you cannot qualify based on the above criteria, see this link for additional qualifications that can be used to potentially access this funding

  • Application deadline has been extended to December 31, 2020

If you are not eligible for the CEBA, there is an alternate source of funding available​

Canada Recovery Benefit (CRB)

Canada Recovery Caregiving Benefit (CRCB) and

Canada Recovery Sickness Benefit (CRSB)

  • These new programs are open to accept applications starting on October 5, 2020

  • They are aimed at individuals who cannot work due to either needing to care for a family member who must self-isolate or an individual who cannot work because they must self-isolate

  • Links for these programs can be found here: CRCB or CRSB

Helpful links

 

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 Last modified: October 15, 2020

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