Capstick McCollum & Associates
204-465 Morden Road L6K 3W6 Oakville, ON, Canada

We know there has been a lot of information provided the past few weeks regarding changes to tax filings, payments and subsidies. We know it can be difficult to digest this information and what it means for you personally or you as a business owner, especially with all the other things you are dealing with at the moment. That is why we are happy to provide this basic summary of what is available and general information on what this means for you. Individuals:...Continue reading

Government agencies are continuing to announce support packages for Canadian small businesses and business owners. Here is a summary of further announcements: The Canada Emergency Response Benefit (CERB) provides $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic. The CERB would cover Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working pare...nts who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The CERB would apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI). WSIB has announced the deferral of premium reporting and payments, without interest or penalties until August 31, 2020. Any business already covered by WSIB is automatically eligible for this deferral, no application is necessary. It also does not matter whether you report and pay on a monthly, quarterly or annual basis. Federal government 1. The wage subsidy previously announced at 10% has now been increased to 75% of salaries. 2. Deferral of HST payments until June 2020. 3. Government guarantee of loans of up to $40,000 for small businesses, interest free for the first year. Under certain conditions, up to $10,000 may be non-repayable. 4. Additional investments in Business Development Bank of Canada and Export Development Canada to support small and medium enterprises with cash flows. Further details on the federal government announcements are expected on Monday, March 30. Stay tuned and stay safe!

Please read below for an update on what we are doing in response to COVID-19 and it’s impact on our business: In light of the Premier’s order to close all non-essential businesses in the province, we are encouraging our clients to delay any face-to-face meetings or paper document transfers for the next 14 days. We recognize that accounting services have been deemed an essential service. As such, our staff remain hard at work from their home offices and will continue to prov...ide the level of service to which you are accustomed. Emails and voice mail messages will be monitored regularly during this time. As previously communicated, the personal income tax filing deadline has been extended to June 1, 2020. In addition, taxpayers will have until September 1, 2020 to pay any 2019 income tax amounts owing. Details of corporate extensions and subsidies were communicated in an earlier message. Where possible, we ask that you submit your personal tax information on a timely basis by taking advantage of our web portal. Please be in touch if you would like to receive an invitation to join. We welcome meetings by phone or video conferencing. For those who are unable to access the web portal and prefer to meet in the office, you are welcome to schedule a meeting time after April 8, 2020 which provides sufficient time to process the return within the extended time frame. Our top priority is the health and safety of our clients, staff and their families during this time of uncertainty.

As announced last week, the federal government has provided a package of subsidies for businesses and charities. We are happy to provide a summary of the available subsidies and what you need to do to obtain them. 1. Wage subsidy for eligible small businesses (Canadian controlled private companies who’s taxable capital for the preceding tax year is less than $15 million), not-for-profit organizations and registered charities those with continuing payroll will be eligible t...o get a 10% wage subsidy in the form of reduced withholdings for remuneration paid after March 18 and before June 20, 2020. If you don’t know if you qualify, please do not hesitate to contact us to help you figure it out. a. This is a manual calculation done by you (or your payroll provider you may want to get in contact with them to ensure they know whether you qualify for it or not) and can only reduce the amount of income tax you are remitting, not CPP or EI b. Maximums you can receive are: $1,375 per employee or $25,000 per employer (ie: an employer with 5 employees would be entitled to a maximum of $6,875 and not the full $25,000). c. Calculation example gross payroll is $20,000 for the pay period, your subsidy is 10% of that figure - $2,000. You can reduce the amount of income tax you are remitting by $2,000. You can continue to do this on each CRA remittance for all salaries paid before June 20, 2020. 2. Deferral of income tax payments until September 1, 2020. All corporate income tax payments, including monthly or quarterly instalments (but not including HST or payroll remittances) can be deferred until September 1, 2020 with no interest. The amounts need to become due after March 18, 2020 and before September 1, 2020. Please contact us for aid in determining if an amount is eligible for the payment deferral. There has been no filing extension announced for corporations at this time. The filing deadline remains 6 months after the corporate year end. 3. Registered charities with charity returns due between March 18, 2020 and December 31, 2020 now have a filing extension to December 31, 2020 this would impact any charities starting with September 30, 2019 year ends until June 30, 2020 year ends. If you require any help in determining whether your corporation can apply these subsidies, please do not hesitate to contact us.

Something to consider when deducting moving expenses!