Please note the information given is updated from this date and prior.
Any new updated will be reissued at a later date.
These are the top questions and answers that I have received over the last month.
What is the CERB – Canada Emergency Response Benefit?
This benefit is available to individuals who have stopped working and are not earning employment or self-employment income. You must reside in Canada, are 15 years of age, have had to stop working because of COVID-19, had income of $5,000 in 2019 or in the 12 months prior to the date of your application, and who are or expect to be without employment or self-employment income for at least 14 consecutive days in the initial four-week period.
If you continue to earn any income over the period you are claiming, you will NOT be eligible for any of this benefit. It comes in the form of $2000 every 4 weeks for 4 months. Taxes will not be deducted but will have to be remitted on your 2020 tax return.
You can apply through My CRA Account here
Or by calling 1.800.959.2019
What are the Wage Subsidies for Employers?
10% can be deducted directly off gross wages of the income tax portion of payroll remittance sent in monthly – this subsidy is in effect from March 18 – June 20, 2020. You can calculate this or your Bookkeeper/Accountant and remit the difference.
75% of wages (max $847 per employee per week) – in effect from March 15 – June 7, 2020
Employers must have a 15% revenue drop for the month of March and you can apply through the My Business CRA portal here
What is the due date now for taxes?
Personal & Corporate balances and instalments are not due until Sept 1, 2020
Personal tax deadline is extended to June 1, 2020
HST balances from March 18 are also not due until June 30, 2020
What options do I have as self-employed to access additional funds?
The Canada Emergency Business Account is an interest free loan up to $40,000 to small business and non-profits. 25% of the borrowed amount (up to $40,000) is completely forgivable if repaid by December 31, 2022. If not repaid, terms differ through the various banks for subsequent repayment.
To qualify your 2019 Payroll has to be between $50,000 and $1,000,000.
Top Banks have reduced their credit rates down as much as half (10% from 20%) in some cases.
If you have a line of credit with prime (Bank of Canada interest rate down to 0.25%)
Many banks have also deferred payments from 2 – 6 months.
Contact your specific bank to see their terms and offers for small business.
Please contact Jenn at firstname.lastname@example.org for any other questions and further details not seen here.