TOLL FREE: 1 (800) 661-1956 info@alliedassociates.ca

INFORMATION FOR INDIVIDUALS

 

The link to the main source of information from the Federal Government is:

 

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

 

Clicking on this link, and then accessing any of the topics should always provide the most up to date information that is available.

 

Highlights of Federal Measures include:

 

  • Increases to Canada Child Benefit (CCB) and GST Credit payments
    • No action needed. If already receiving, this will be done automatically
    • Additional enhancements for families with children under Age 6 expected to be paid quarterly during 2021. Personal tax filings will need to be up to date.
  • Filing/payment deadlines for 2019 Personal Tax Returns extended
    • Extended filing deadlines have all passed. No additional extensions have been announced.
  • New Canada Emergency Response Benefit (CERB) *THIS PROGRAM HAS ENDED*
    • This program ended October 3, 2020.
    • New Canada Recovery Benefit (CRB)
      • Taxable benefit of $500/week for a maximum of 26 weeks, claimable in 2 week periods from September 27, 2020 to September 25, 2021.
      • For those not working, or those experiencing a reduction in average weekly income of at least 50% because of COVID-19.
      • Accessible starting October 12, 2020 through CRA web portal.
      • Repayable at $0.50/$1 if income is greater than $38,000 for the year. This will be dealt with through personal income tax return.
      • Details at https://www.canada.ca/en/revenue-agency/services/benefits/recovery-benefit.html.
      • New Canada Recovery Caregiving Benefit (CRCB)
      • New Canada Emergency Student Benefit (CESB) *THIS PROGRAM HAS ENDED*
        • This program is now ended.
        • Reduced minimum withdrawals from RRIF
          • Reduced by 25% for 2020
          • Moratorium on repayment of Canada Student Loans
            • Six-month interest-free moratorium on repayment of Canada Student Loans effective March 30, 2020
            • Automatic – no action needed

         

        The link to the main source of information from the Ontario Government is:

         

        https://news.ontario.ca/search/en?keywords=covid19

         

        Clicking on this link will take you to the news section of Ontario’s main COVID-19 information page. Here you can access the most up to date news releases from the government of Ontario.

        Many of the Ontario measures surround business and the health care system. Much of the relief for individuals is being provided through federal programs.

         

        Highlights of Federal Measures include:

         

        • Moratorium on repayment of Ontario Student Loans
          • Six-month interest free moratorium on repayment of OSAP loans.
          • Automatic – no action needed.
        • Ontario Support for Families Benefit
          • Application period has ended.
        • Ontario Support for Learners Benefit

        INFORMATION FOR BUSINESSES

         

        The link to the main source of information from the Ontario Government is:

         

        https://news.ontario.ca/en/search/?keywords=covid-19.html

         

        Clicking on this link, and then accessing any of the topics should always provide the most up to date information that is available.

         

        Highlights of Federal Measures include:

         

        • Extending the Work-Sharing program
          • Maximum duration extended from 38 weeks to 76 weeks
          • Details on this program available through the link
        • Canada Emergency Wage Subsidy (CEWS)
          • Up to 75% wage subsidy for qualifying businesses for 12 weeks covering pays from March 15, 2020 to June 6, 2020. Maximum subsidy is $874/week per employee
          • Open to all employees except public sector entities
          • Must have 15% drop in gross revenue in March or 30% drop in gross revenue in April or May compared to same month in 2019. Alternatively, can compare to average revenue from January and February 2020. Must use same method throughout.
          • Can choose to calculate revenue on accrual or cash basis but must use same method throughout. If you qualify for one period, you automatically qualify for the next period.
          • Refund of employer portion of CPP and EI for each week that employee was paid but performed no work (on leave with pay) as long as CEWS claimed for that employee.
          • This program has been extended a further 28 weeks to December 19, 2020. The criteria are unchanged for the period (June 7 – July 14).
          • For periods 5 through 9 (July 5 – November 21) the program is changed significantly. Subsidies are now provided for all revenue declines at varying percentages ranging from as low as 0.4% to as high as 85% depending on the month and the severity of the decline.
          • The program has been further extended until June 2021 and again, the calculations have changed.
          • The rules for periods 10 through 13 (November 22, 2020 to March 13, 2021) have been published.
          • Rules for periods starting March 14, 2021 have not yet been established.
          • Deadline for applying for each period is the later of January 31, 2021 or the date that is 180 days after the end of the applicable period.
          • Please speak to one of our accountants for more assistance in determining whether you qualify.
          • The following link provides more detailed information: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html

        Temporary Wage Subsidy

         

        • Increased Access to Credit
          • Various programs have been announced
          • For details on these programs contact financial institution
          • Programs include:
            • Business Credit Availability Program (BCAP)
            • Canada Emergency Business Account – providing up to $40,000 interest-free to December 31, 2022 to small businesses and not-for-profits to help cover operating costs. Must have had payroll between $20,000 and $1.5M in 2019.  Repaying loan on or before December 31, 2022 will result in loan forgiveness of 25%. Online applications are available at the primary lending institutions as of April 9, 2020. Additional details available here: https://ceba-cuec.ca/
            • Deadline to apply is March 31, 2021.
            • For those businesses not qualifying through the normal rules, CEBA has expanded to allow those with payrolls under $20,000 but with eligible non-deferrable expenses between $40,000 and $1,500,000 to apply. This will be a two step application starting with your primary lending institution and then submitting additional documents to the Government of Canada. Applications will open on June 19, 2020. Details are available here: https://ceba-cuec.ca/
            • CEBA expansion of additional $20,000 available as of December 4, 2020 to those qualifying for the original $40,000. Repayment of $10,000 of this additional $20,000 by December 31, 2022 will result in a forgiveness of the other $20,000.
            • Increasing credit available through Farm Credit Canada. https://www.fcc-fac.ca/en/covid-19.html
            • 6 month Stay of Default for farmers with an Advance Payment Program loan due on or before April 30, 2020. http://www.agr.gc.ca/eng/agricultural-programs-and-services/advance-payments-program/?id=1462198969862

         

        • Filing/payment deadlines for corporate taxes extended
          • Extended filing deadlines have all passed. No additional extensions have been announced.

        The link to the main source of information from the Ontario Government is:

         

        https://budget.ontario.ca/2020/marchupdate/annex.html#section-0

         

        Clicking on this link will lead to a summary of measures introduced by the Ontario Government in the March 25, 2020 Economic Update.

         

        Highlights of Ontario Measures Include:

         

        • For 2020 only increasing the $490,000 exemption for EHT to $1,000,000, retroactive to January 1, 2020. In the 2020 budget released in November, this $1,000,000 exemption was made permanent for 2021 forward.
        • New Regional Opportunities Investment Tax Credit
          • 10% refundable Corporate Income Tax Credit
          • Available to Canadian Controlled Private Corporations that invest in capital property (mainly buildings) (for CCA purposes must be Class 1 or Class 6) that become available for use on or after March 25, 2020
          • Includes expenditures for constructing, renovating or acquiring commercial and industrial buildings and other assets in specified regions of the Ontario (see link) https://budget.ontario.ca/2020/marchupdate/annex.html#ca-3
          • Expenditures in excess of $50,000 and up to $500,000. So, maximum credit is $45,000.
          • There is a mandatory 3-year review – so it looks like this credit is going to be around for a while
        • Canada Ontario COVID-19 2020 Hog Maintenance Feed Initiative
        • Canada Ontario COVID-19 AgriRecovery Beef Emergency Feed Maintenance Initiative

        Allied Associates LLP is committed to ensuring that our employees, families, clients, and community remain healthy and safe.   Allied has been built on the foundation of in-home service where we provide consultation and advice that encourages participation in the financial side of your business. Our Advisors have started in-home visits again. Clients will be notified of the date and time of the scheduled appointment in advance. If uncomfortable with having an in-person visit, clients should contact their Accounting Advisor as soon as they receive the appointment notice to arrange another method of meeting.

        We will continue to be available at all of our regular contact numbers.

         

        Our values, standards and commitment will not be impacted by these events.  If you have any questions or concerns, please contact us at 519-673-1940 or info@alliedassociates.ca

         

         

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