Updated: Apr 10, 2020
On March 18, 2020 the Government of Canada announced a series of programs to support individuals, businesses, charities and non-profit organizations (NPOs). These programs are being adjusted almost daily. Clearly Financials would like to share a summary of these programs to support small businesses our local Edmonton community.
Click here to download the full PDF Guide (The PDF version contains information for both Small Businesses and Individuals). An outline of the sections directed to small business owners follows.
SUPPORT FOR BUSINESSES
There are a number of measures to assist businesses with improving their cash flow. These can be sorted into the following 3 categories.
Deferrals of Tax Payments
There are currently 3 programs for payroll support.
10% Wage Subsidy (10% WS)
Immediate 10% subsidy for employers. Implemented by reducing remittances of income tax withheld as source deductions.
75% Wage Subsidy (75% WS)
For businesses with a significant decline in revenue. Up to 75% of gross payroll may be subsidized.
EI Work-Sharing Program
Provides EI benefits to workers who agree to reduce their hours by 10% to 60%. Employers and employees must make the application together.
On March 27, 2020, details of the Business Credit Availability Program were announced. In general, 3 programs are available.
Canada Emergency Business Account (CEBA)
Interest free loans of up to $40,000 to small businesses. Scheduled to be available today (April 9, 2020) through the borrower's financial institution.
Loan guarantee for small and medium enterprises
Export and Development Canada (EDC) is working with financial institutions to issue new credit and cash flow term loans to small and medium enterprises.
Co-lending program for small and medium-sized enterprises
The Business Development Bank of Canada (BDC) is working with financial institutions to co-lend term loans to small and medium enterprises for their operational cash flow requirements.
DEFERRALS OF TAX PAYMENTS
Corporate Income Tax
Deadline for payment of corporate income tax payable under Part I of the income tax act, that became due on or after March 18, 2020, deferred to September 1, 2020.
Deadline for filing of income tax returns, forms, elections, designations, and responses to information requests that became due on or after March 18, 2020, deferred to June 1, 2020.
Payroll and Scientific Research and Experimental Development (SR&ED)
Payroll deductions and related activities must be done on time.
SR&ED claims must be made on time.
GST/HST which would otherwise become payable at the end of March, April, or May will instead by payable by June 30, 2020.
We understand that these are challenging times for many small Edmonton businesses. We are working diligently at Clearly Financials to support our local communities through these unprecedented changes.
Realize that you are not alone, that we are in this together and most importantly that there is hope.
For other COVID-19 updates, please view the resources on our website.
This is a summarized version of complex matters that are rapidly changing. We expect further clarification from the government in the coming days. The preceding information is provided for educational purposes only. Speak with one of our advisors if you have any questions about your specific accounting or tax needs.
We also provide personal tax preparation services or individuals and families.
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