Joseph Lea and Associates Inc
2191 Duggan road V9S 5N9 Nanaimo, BC, Canada

As with the T4 statements employers provide to employees in advance of tax season, the T4a statement details how much taxable income someone received directly from the federal government in the form of a COVID-19 benefit.

The CRA has long monitored social media platforms to determine whether taxpayers are posting information and content that are inconsistent with their reported income.

Apply now for the B.C. Recovery Benefit, a one-time payment of up to $1,000 for eligible families and single parents and up to $500 for eligible individuals. If your 2019 income was above $87,500 or you are under 19, you are not eligible. You need line 23600 from your 2019 tax return, SIN#, BC driver's license (unless you don't have one), and Banking info (institution, transit and account#).

The CRA said this latest letter strongly encourages those who received it to file their 2019 tax returns as soon as possible.

If this happens to you, just amend your 2019 tax return and remove expenses. You are not legally obligated to expense anything. They want it gross, just change your net.

There is already anxiety in the tax preparation industry that the upcoming tax season will be difficult for a lot of taxpayers when they discover usual refunds don't happen and worse many will owe significant tax debts. On the bright side, we are all in this together so CRA will not have it easy collecting on those debts. "I think a lot of people are going to worry about that tax time because it's never been something that they've had to consider before. It's routine. It's basic," she said. "Living under a certain amount always usually meant that there would be a return. And a lot of people, unfortunately, rely on that."

This is a flawed article. It doesn't give you the variables to come to the $100,000 loss of retirement income. Any "loss" is dependent on how long you live as it isn't until 75 where taking it early has any effect. If you take CPP early and roll it into an RRSP so there is growth, it is in your 80's before you would show any "loss". Lastly, many retirement homes take a % of your income so the argument is mostly moot.

Everyone is eligible but you have to apply.

First, calculate your net income for 2020. If it exceeds $38,000, don’t apply for the CRB in November and December even if you qualify. When you file your tax returns, it will claw back 50% of the income earned above $38,000 up to the CRB amount you collected. wait till January to claim your November and December CRB, which comes to $3,600. The CRA gives you 60 days to claim your CRB from the date the application window opens. As you will receive the CRB benefit in January, it will not be added to the 2020 tax year.

BC Grant requires min 2 employees and 50% (ongoing) drop in revenue.

This is way overdue!! I care more about people who are missing out on important benefits than the tax preparation industry. It was time to do this 20 years ago, she exclaimed. They already have the ability to do this, and we know that because you can already receive your notice of assessment within 30 seconds of filing your taxes. They can do those auto-notices because they already have all the freaking information you submitted, and they’re just checking it against what they have on file.

"The federal government is extending the Canada emergency response benefit (CERB) by one more month and revamping the employment insurance (EI) program to allow more people to receive financial assistance during COVID-19." "The Canada Recovery Benefit: For self-employed workers and other workers not eligible for EI. It pays $400 per week but recipients they will have to repay 50 cents on every dollar earned above $38,000. It is available for 26 weeks over a one year period." ..."The Canada Recovery Caregiving Benefit: For eligible Canadians unable to work because they need to care for a child, family member, or dependent. The benefit only applies in cases where care centres, schools or day care have been shut down. Anyone keeping their kids home voluntarily will have to provide medical evidence for why they can’t attend. It pays $500 per week and is vailable for 26 weeks over a one year period." See more

"The millions of people who are still claiming the Canada Emergency Response Benefit (CERB) will be transitioned onto the federal Employment Insurance program in September, the federal government announced on Friday." "The weaning off of the massive and never-before-used aid program has been months in the making, with signals that a strengthened EI program was in the works and to be used if there was a second wave. "

"The government previously announced that the expanded Canada Emergency Business Account (CEBA) program would launch on Friday, June 19. Unfortunately, there will be a slight delay in the roll out of the application process for the expanded program, in order to ensure that the programs IT infrastructure is safe and secure for the businesses it serves. There is a pressing need for this kind of support and the government is working hard with Canadian financial institutions to launch the expanded CEBA. This program involves the participation of more than 230 financial institutions, and it is critical to ensure that the systems that receive applications and deliver funding are resilient and secure, to ensure a successful program launch. Details on the new launch date will be provided shortly."

EXPANSION to CEBA (Canada Emergency Business Account) https://www.investmentexecutive.com//feds-expand-eligibil/... CEBA will now be available to sole proprietors, businesses that rely on contractors and family-owned corporations that pay employees through dividends, according to a government release. Eligible businesses must have a business operating account at a financial institution and a Canada Revenue Agency business number, and must have filed taxes in 2018 or 2019. They also must have eligible non-deferrable expenses ranging from $40,000 to $1.5 million.

BC Hydro COVID-19 Relief Fund For residential customers ---- - If you or your spouse/partner have stopped working due to COVID-19, you may be eligible for three months of bill credit based on your average consumption.... https://app.bchydro.com//covid-19-relief-/residential.html For small businesses ---- - If you own a small business that needed to close due to COVID-19, you may be eligible to have your business' electricity use charges waived for up to three months. https://app.bchydro.com//covid-19-relief-f/commercial.html Our other support for those financially impacted by COVID-19 1) For residential customers who are still working 2) For residential customers who were facing disconnection 3) For medium and large business customers 4) For industrial business customers

Providing up to $500 a month to help renters and landlords during the COVID-19 pandemic. Households need to meet each of the following criteria to qualify for the BC Temporary Rental Supplement: 1) Have a 2019 gross household income of less than:... $74,150 for singles and couples without dependents $113,040 for households with dependents 2) As a result of COVID-19: a) Be receiving or eligible for Employment Insurance; or b) Be receiving or eligible for the Canada Emergency Response Benefit offered by the federal government; or c) Have experienced, and be able to provide evidence of, a drop of 25% or more in monthly household employment income 3) Be paying more than 30% of current household income towards rent There is a two-step process for applications to the BC Temporary Rental Supplement program. Apply here ---> https://bctrs.bchousing.org/

UPDATE TO CECRA (Canada Emergency Commercial Rent Assistance) *Please note you have been manually subscribed to our mailing list around government funding in relation the COVID-19 pandemic. Some emails may not be applicable to you and you can unsubscribe (below) if you do not want to receive further emails.... https://www.ctvnews.ca//deal-reached-to-lower-rent-by-75-p "Prime Minister Justin Trudeau has announced that an agreement has been reached with all provinces and territories to implement the promised rent assistance program for businesses. It will lower rent by up to 75 per cent for eligible small businesses that have been impacted by COVID-19. "The businesses eligible for this rent relief are those that have to pay less than $50,000 per month in rent, have had to temporarily cease operations, or have experienced at least a 70 per cent drop in pre-COVID-19 revenues. The program is also being made available to non-profits and charities. "Trudeau has announced that the program will provide forgivable loans to qualifying commercial property owners to cover 50 per cent of three monthly rent payments. The loans will be forgiven if the property owner agrees to reduce eligible businesses rent by at least 75 per cent for the three months. "The government says the Canada Mortgage and Housing Corporation will administer the program, which is set to be operational by mid-May. The intention is to have commercial property owners lower rents for their tenants now and be paid retroactively for April and May.

NEWEST UPDATED TO 75% WAGE SUBSIDY (CEWS)! https://www.huffingtonpost.ca//canada-emergency-wage-subsi "Justin Trudeaus federal government rolled out more details on the Canada Emergency Wage Subsidy (CEWS) Tuesday, the latest financial aid program introduced in response to the COVID-19 pandemic. ... "Businesses that have lost at least 15 per cent of their revenue from March 15 to April 11 and 30 per cent of their revenue from April 12 to May 9 and May 10 to June 6 due to the pandemic will qualify for the subsidy. "Businesses can apply through their CRA My Business Account or through an online form that will be posted to the government website after applications open. All applications submitted between April 27 and May 4 will not be processed until May 5, so government officials are encouraging folks to not rush to apply as soon as the portal opens. The government is also recommending businesses use the CEWS online calculator before applying to ensure they submit their application properly. You can access the calculator here. If youve already used the calculator, the application itself should only take a few minutes. " ----- https://www.canada.ca///cews-calculate-subsidy-amount.html "Calculate your subsidy amount "When you apply for the Canada Employment Wage Subsidy (CEWS), you will be asked to enter amounts such as the number of eligible employees and gross payroll. To get ready, you can determine these amounts and preview your subsidy claim now, based on information you enter. The calculator is a tool to help you estimate the amount of your wage subsidy. "Before you calculate your subsidy, make sure you are eligible to apply. "After you apply for the wage subsidy, your claim will be subject to verification. "The CEWS amount is based on: the number and type of eligible employees you have, and the amount and type of pay they received before and during the crisis "There is no limit on the total subsidy amount that an eligible employer may claim."

To help more Canadians benefit from the Canada Emergency Response Benefit, the Government has announced changes to the eligibility rules. Learn more: http://ow.ly/LsDc50zfdGu #COVID19 #EconomicResponse

UPDATE to CEBA (Canada Emergency Business Account) and Addition of CECRA (Canada Emergency Commercial Rent Account)... https://www.ctvnews.ca//pm-trudeau-unveils-new-business-re UPDATE TO CEBA: The federal government is also opening up the eligibility criteria the Canada Emergency Business Account. The program, targeted at small- and medium-sized businesses, offers government-guaranteed loans of up to $40,000 to cover the costs of keeping their enterprise afloat during the COVID-19 crisis. If the company can repay the balance of the loan by the end of 2022, up to $10,000 will be forgiven. The current eligibility requires applicants to prove that they paid between $50,000 and $1 million in payroll in 2019, leaving out some businesses on either side of these figures. Now, companies who paid between $20,000 and $1.5 million in total payroll in 2019 will be eligible to receive a loan. Addition of CECRA: Speaking to the challenges faced by businesses and commercial property owners due to COVID-19, Trudeau said the new Canada Emergency Commercial Rent Assistance program will help small businesses cover their rents for April, May, and June. The assistance is being rolled out in collaboration with the provinces and territories as rent policy is largely provinces and municipalities responsibility. More information on CECRA to come!

Now this. This is like when you call the CRA and 3 out of 4 times you get a different answer. But since different federal departments manage both programs, some Canadians have discovered that they can apply for both benefits and receive $4,000 (or double the normal payment) in the upcoming days. Thats a no-no, says the federal government, and those who do will be expected to reimburse the overpayment. As of now, the government is still figuring out how it will recoup any overpayments to Canadians who applied.

This article says that the Treasury Board President stated it wasnt a mistake and instead was a retroactive payment. The other article references a tweet from the CRA about duplicate CERB payments.

As per CRA, If you realize after youve applied that you shouldnt receive the CERB, please return any cheques to sender. For direct deposit, ask your bank to return the funds. You wont be asked to pay penalties or interest. As you cant return direct deposits, its an interest free loan until you are contacted how to repay it.

UPDATE TO 75% WAGE SUBSIDY Three big fixes to the 75% wage subsidy are coming! The big changes are:... To access the subsidy in March, April and May 2020, a firm will be able to compare their sales to the same month last year OR January and February 2020. This will help new and growing firms who may not have qualified based on a comparison to last year. We heard concerns that many would not qualify for a subsidy in March as they wouldnt show a 30% reduction (given the first half of the month wasnt deeply affected). The federal government will now require demonstrating only a 15% reduction in gross revenues. A 30% reduction will still be required to receive the subsidy in April and May. Some business reported that their regular accounting method would mean their books would not show a loss due to when revenue would be recorded (the accrual method). This would affect companies like contractors and many others. Now the government will provide an option to use cash accounting too. Therefore, if are still open, you should review your sales and consider applying for the 75% wage subsidy. You can apply through your My CRA Account For Business (https://apps8.ams-sga.cra-arc.gc.ca//mbsl/myba/prot/wlcm.a) when available.

Registration for CERB begins today either using your MY CRA ACCOUNT for Individuals or calling 1-800-959-2019 or 1-800-959-2041.

Applications to the Canada Emergency Response Benefit are now open. To make sure we can help you quickly, were asking you to apply on different weekdays depend...ing on birth month. Today is Monday - calling all those born in January, February, or March! Find out more at http://ow.ly/wJaB50z5IP5

Are you applying for the Canada Emergency Response Benefit? With My Account and direct deposit, you could get your payment within 3 business days! If you choose... a cheque, you can expect it within 10 business days. Set up your My Account today: http://ow.ly/WIJu30quRfN #COVID19 #CdnTax

Applications to the Canada Emergency Response Benefit are opening soon. To make sure we can help you quickly, were asking you to apply on different weekdays depending on birth month. Find out more at http://ow.ly/NEKS50z3MZr

UPDATE to Canada Emergency Wage Subsidy! How to Apply Eligible employers would be able to apply for the Canada Emergency Wage Subsidy through the Canada Revenue Agencys My Business Account portal as well as a web-based application. Employers would have to keep records demonstrating their reduction in arms-length revenues and remuneration paid to employees. More details about the application process will be made available shortly.... Important note to employers who are employees of their business A special rule will apply to employees that do not deal at arms length with the employer. The subsidy amount for such employees will be limited to the eligible remuneration paid in any pay period between March 15 and June 6, 2020, up to a maximum benefit of $847 per week or 75 per cent of the employees pre-crisis weekly remuneration. Eligible Periods Eligibility would generally be determined by the change in an eligible employers monthly revenues, year-over-year, for the calendar month in which the period began. The amount of wage subsidy (provided under the COVID-19 Economic Response Plan) received by the employer in a given month would be ignored for the purpose of measuring year-over-year changes in monthly revenues. For example, if revenues in March 2020 were down 50 per cent compared to March 2019, the employer would be allowed to claim the Canadian Emergency Wage Subsidy (as calculated above) on remuneration paid between March 15 and April 11, 2020. The table below outlines each claiming period and the period in which it has a decline in revenue of 30 per cent or more. Claiming period Reference period for eligibility Period 1 March 15 April 11 March 2020 over March 2019 Period 2 April 12 May 9 April 2020 over April 2019 Period 3 May 10 June 6 May 2020 over May 2019 For eligible employers established after February 2019, eligibility would be determined by comparing monthly revenues to a reasonable benchmark. Interaction with the Canadian Emergency Response Benefit An employer would not be eligible to claim the Canada Emergency Wage Subsidy for remuneration paid to an employee in a week that falls within a 4-week period for which the employee is eligible for the Canadian Emergency Response Benefit. Employers who are not eligible for the Canada Emergency Wage Subsidy would still be able to furlough employees who will receive up to $2,000 a month.

IMPORTANT UPDATES to CERB! Important! If you are not eligible for Employment Insurance, find out how you can get ready to apply for the CERB through the Canada Revenue Agency. Whether you apply online or by phone, the CRA wants to provide the best service possible to everyone. To help manage this, the CRA has set up specific days for you to apply. Please use the following guidelines:... Day to apply for the Canada Emergency Response Benefit The month you were born decides when you Apply for CERB January, February or March = Mondays April 6 April, May, or June = Tuesdays April 7 July, August, or September = Wednesdays April 8 October, November, or December = Thursdays April 9 Any month Fridays, Saturdays and Sundays IMPORTANT! If I would have been entitled to less than the $500 per week under Employment Insurance, will I get the $500? Yes. When you apply for the Canada Emergency Response Benefit, you will receive $500 per week, regardless of what you may have been eligible to receive through Employment Insurance. Eligibility The benefit will be available to workers: Residing in Canada, who are at least 15 years old; Who have stopped working because of COVID-19 or are eligible for Employment Insurance regular or sickness benefits: Who had income of at least $5,000 in 2019 or in the 12 months prior to the date of their application; and Who are or expect to be without employment or self-employment income for at least 14 consecutive days in the initial four-week period. For subsequent benefit periods, they expect to have no employment income. The income of at least $5,000 may be from any or a combination of the following sources: employment; self-employment; maternity and parental benefits under the Employment Insurance program and/or similar benefits paid in Quebec under the Quebec Parental Insurance Plan.

Canada Emergency Business Account (aka loan) "The loans will be interest-free for the first year. Businesses that repay the loan on or before December 31, 2022 will also be forgiven 25 percent of that loan (up to $10,000). Am I eligible?... If you're a small business or not-for-profit that paid between $50,000 to $1 million in total payroll in 2019, then you're eligible. How do I apply? If you're eligible, you'll need to contact your financial institution to apply for the loan."

Update on CERB (Canadas Emergency Response Benefit). "To qualify, applicants must have had $5,000 in employment income, self-employment income, or maternity or parental leave benefits for 2019 or in the 12-month period preceding the day they make the application." The EI system was not designed to process the unprecedented high volume of applications received in the past week. Given this situation, all Canadians who have ceased working due to COVID-19, whether they are EI-eligible or not, would be able to receive the CERB to ensure they have timely access to the income support they need,

UPDATED! Support for people facing unemployment The "newest" new Canada Emergency Response Benefit We will provide a taxable benefit of $2,000 a month for up to 4 months to:... 1) workers who must stop working due to COVID19 and do not have access to paid leave or other income support. 2) workers who are sick, quarantined, or taking care of someone who is sick with COVID-19. 3) working parents who must stay home without pay to care for children that are sick or need additional care because of school and daycare closures. 4) workers who still have their employment but are not being paid because there is currently not sufficient work and their employer has asked them not to come to work. 5) wage earners and self-employed individuals, including contract workers, who would not otherwise be eligible for Employment Insurance. The Canada Emergency Response Benefit will be accessible through a secure web portal starting in early April. Applicants will also be able to apply via an automated telephone line or via a toll-free number.

The new Emergency Care Benefit is being altered. Originally it was a "15-week, $900 bi-weekly benefit for workers, including the self-employed, who dont qualify for EI sickness benefits" but now it's a "$2,000 per month for the next four months for workers who lose their income as a result of COVID19". A target delivery date of April 6. https://nanaimonewsnow.com//liberals-rejig-benefits-for-/

BC residents who receive the Federal Emergency Care Benefit coming April 2020 (*note this benefit is being altered) will also receive a one-time, tax-free $1,000 benefit. "British Columbia is supplementing those federal benefits with a one-time, tax-free $1,000 benefit. The benefit will be available to people who are eligible for EI or the care or support benefits, and will be available by May."

BC Government COVID-19 Action Plan (BC Tax) An additional one-time payment will be made in July 2020 on top of the regular climate action tax credit amount for qualifying individuals and families. Deferred Tax Payments... ---------------------------------- Effective immediately, B.C. is extending filing and payment deadlines for the following taxes until September 30, 2020: 1) Employer health tax 2) Provincial sales tax (including municipal and regional district tax) 3) Carbon tax 4) Motor fuel tax 5) Tobacco tax Delayed PST Budget 2020 Tax Changes ------------------------------------------------------ The following tax changes announced in Budget 2020 will be postponed until further notice: 1) Eliminating the PST exemption for carbonated beverages that contain sugar, natural sweeteners or artificial sweeteners 2) Expanded registration requirements for Canadian sellers of goods, along with Canadian and foreign sellers of software and telecommunication services 3) Delayed Carbon Tax Increase Carbon tax rates will remain at their current levels until further notice. The tax measure announced in Budget 2020 aligning the carbon tax rates with the federal carbon pricing backstop is also postponed until further notice. 4) Reduced School Tax Rates for Businesses School tax rates for commercial properties (Classes 4, 5 and 6) will be reduced by 50% for the 2020 tax year. 5) Enhanced B.C. Climate Action Tax Credit The previously scheduled credit increase effective July 2020 remains the same.

Important message to employers and employees about collecting EI during the Covid-19 Pandemic. "Important Notice Coronavirus Disease (COVID-19)... If your employees are directly affected by the coronavirus (COVID-19) and they are no longer working, you must issue a Record of Employment (ROE). When the employee is sick or quarantined, use code D (Illness or injury) as the reason for separation (block 16). Do not add comments. When the employee is no longer working due to a shortage of work because the business has closed or decreased operations due to coronavirus (COVID-19), use code A (Shortage of work). Do not add comments. When the employee refuses to come to work but is not sick or quarantined, use code E (Quit) or code N (Leave of absence), as appropriate. Avoid adding comments unless absolutely necessary."

CRA is suspending collection activities on new debts and, on a case-by-case basis, old debts.

Unfortunately, due to a client coming into the office with flu-like symptoms, we have decided to self-isolate effective immediately, to protect our clients and the community. We have a drop-box outside our front door, and will be able to continue to provide you the same tax service as always. We are available by phone 250-729-7940, or email [email protected]. Thank you for your understanding.

We are providing financial support to those affected by COVID-19. Some of our measures include: Goods and Services Tax Credit (GSTC): The Government is propo...sing to provide a one-time special payment by early May 2020 through the Goods and Services Tax credit doubling the maximum annual payment amounts for 2019-20. The average boost to income from this measure will be close to $400 for single individuals and close to $600 for couples. Canada Child Benefit (CCB): The Government is proposing to increase the maximum annual Canada Child Benefit payment amounts, only for the 2019-20 benefit year, by $300 per child. Overall increase for families receiving CCB will be approximately $550 on average. These families will receive an extra $300 per child as part of their May payment. Registered Retirement Income Funds (RRIFs): The Government is proposing targeted help by reducing required minimum withdrawals from Registered Retirement Income Funds (RRIFs) by 25% for 2020, in recognition of volatile market conditions and their impact on many seniors retirement savings. For more information: http://ow.ly/Etfv50yPZup

Support to Businesses Helping Businesses Keep their Workers To support businesses that are facing revenue losses and to help prevent lay-offs, the government is proposing to provide eligible small employers a temporary wage subsidy for a period of three months. The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer. Businesses will be able to benefit immediately from this support by red...ucing their remittances of income tax withheld on their employees remuneration. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities. Flexibility for Businesses Filing Taxes The Canada Revenue Agency will allow all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period. https://www.canada.ca//canadas-covid-19-economic-response-

CRA has currently extended the tax filing deadline to June 1, 2020, and the tax payment deadline to July 31, 2020. After Friday March 20, we will be providing services electronically only, until further notice. If you would like to have your tax returns prepared, please email us, or call our office to discuss how we can proceed. Please note we do have a locked, secure drop-box outside our front door, for any items you would like to drop off for us. Our office hours will remain the same 9-4 M-F if you would like to reach us by phone or email 250-729-7940/ [email protected]

Already today we've had a couple clients call concerned about coming into our office to file their taxes. Please be aware that we can file your taxes electronically - we can (securely) download your slips from CRA or you can use an app on your phone to send them to us via email and you can pay us via etransfer or credit card. Never hesitate to call.

New location finished and ready for tax season.