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
  • Filing/payment deadlines for 2019 Personal Tax Returns extended
    • Filing deadline currently June 1, 2020 (June 15, 2020 for self-employed)
    • Payment due date September 30, 2020
    • June 15, 2020 and September 15, 2020 instalments deferred to September 30, 2020 without interest/penalty
    • 2019 Personal returns still need to be filed for CCB and GST credits to be calculated beyond June 2020
    • Estimated benefits will continue to be paid for July 2020 to September 2020 in the event the 2019 return has not been assessed.
  • 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)
        • Taxable benefit of $1,250/month for May to August for post-secondary students and new graduates who are not eligible for CERB or EI and are unable to work because of COVID-19
        • Increase to $2,000/month for students with dependents or disabilities.
        • Paid every four weeks and available from May 10, 2020 to August 29, 2020.
        • Apply starting May 15, 2020. https://www.canada.ca/en/revenue-agency/services/benefits/emergency-student-benefit.html.
        • 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:  
          • Electricity Relief – effective March 24, 2020 and continuing until May 31, 2020. Families, small businesses and farms paying time of use rates will have off-peak rates charged 24/7. No action required.
          • 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
          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 rules for period 10 (November 22 – December 19) have not yet been announced.
            • Please speak to one of our accountants for more assistance in determining whether you qualify.
            • Apply through CRA beginning April 27, 2020. The following link provides more detailed information: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html
           
          • 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 October 31, 2020.
              • 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/
              • 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
            • Filing deadlines from March 18, 2020 to May 31, 2020 extended to June 1, 2020.
            • Corporate taxes and instalment due on or after March 18, 2020 deferred to September 30, 2020. No interest or penalties will accumulate
            • HST remittances due from March 31, 2020 to May 31, 2020 deferred until June 30, 2020
            • No change to HST filing deadlines but no penalties imposed for late filing if filed by June 30, 2020.
          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
          • Beginning April 1, 2020 penalties & interest will not apply to businesses that miss filing or remitting deadlines under selected provincially administered taxes (EHT plus a number of others). This continues until August 31, 2020.
          • 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
          • Electricity Relief – effective March 31, 2020 and for a period of 45 days, families, small businesses and farms paying time of use rates, will have off-peak rates charged 24/7. No action required.
          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. The current risks associated with our health environment create a challenge to our in-home service for the current year.  Effective immediately,  our advisers will be contacting you in advance of their appointments to discuss alternative methods of collecting your financial information.  This may include email, express-post,  pick-up or drop-off.  Advisers will be available by telephone or email to provide the consultation and advice that you have become accustomed to.  Further meetings can be scheduled as necessary after the health risk has subsided.  In the meantime,  we will be implementing all of the recommended health protocols including a work from home plan for many of our staff.  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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