The new year is here, which means it’s time to start thinking about your personal taxes for 2020. Stay a step ahead by preparing documents required for the upcoming tax filing.
Here are the top things you need to consider:
January 31st, 2021 is the first hard deadline for the CEWS program!
If you plan to file CEWS application for qualifying periods 1 to 5, they are due by end of day January 31, 2021 to be eligible. In addition, it is also the deadline to amend certain elections made under the CEWS legislation for those same periods.
The Canada Emergency Business Account (CEBA) has been augmented as of December 4, 2020. For existing CEBA recipients, a $20,000 expansion is available (Department of Finance Canada, 2020). If the expansion application is approved, the $20,000 will be added to your original CEBA loan and the funds will be deposited into the account you provided.
For eligible businesses that have not yet applied, a $60,000 loan is now available. This enhancement is available to eligible businesses facing financial hardship as a result of the COVID-19 pandemic.
Everyone and everything has been affected by the new public health restrictions that start on December 13th, and this includes your business. Premier Jason Kenney announced on Tuesday, December 8th that there were changes coming to the Alberta Relaunch Grant. Your company may now be eligible for the new program changes. If you are eligible, the application process will remain open until March 31, 2021.
If so, CRA has released new rules to allow you to deduct some of the additional costs you may have incurred as a result. These include the following:
What to do if you or a family member is sick and awaiting test results, or if you now have to stay home to care for kids because of school closures: A comparison of government programs that could be available to you.
On November 30, 2020, the Minister of Finance released the 2020 Fall economic statement announcing a number of updates to various emergency benefits as well as other associated relief measures. With Canadians now in the throes of the second wave, the government is focusing on supporting the economy through the times of increased restrictions by extending certain programs for a greater length of time, changing criteria around qualification for certain benefits, as well as introducing claims for individuals for their 2020 personal tax returns. Below are some relevant highlights:
Owners of corporations can pay themselves with wages, dividends, or a combination of both. A common question for these owners is what is the best way to pay themselves. There are advantages and drawbacks to both, and it depends on the circumstances of the owner.
What is it?
The Canada Emergency Wage Subsidy (CEWS) is a subsidy program introduced by the Canadian government that began on March 15, 2020. The CEWS provides a subsidy to eligible employers in the amount of 75% of eligible remuneration paid to each eligible employee up until the claim period ending July 4, 2020. Following the initial CEWS announcement, the government extended the program for 24 weeks and added additional rules for claim periods ending after July 4, 2020 (Canada Revenue Agency, 2020).
On October 9, the government proposed the new Canada Emergency Rent Subsidy (CERS) to provide direct relief to businesses, non-profit entities, and charities that continue to be impacted by COVID-19.
The program is very similar to the Canada Emergency Wage Subsidy. The new program will subsidize 65% of eligible expenses (with an additional 25% for entities that qualify under the new Lockdown Support).