WAVE Small Business Solutions
5211-50 Avenue T9A 0S7 Wetaskiwin, AB, Canada

Thank you all so much for your support during this challenging time. Haven’t filed yet? The tax filing deadline is April 30. Just call, email or drop off your information and we will prepare your taxes for you! Please note the office hours and feel free to call if you need appointments outside of the posted times. We will make arrangements.

Received this beautiful handmade gift from a client today. So grateful. Thank you Deb

COVID-19 Benefits and taxation (Part 5) Today we will discuss the Canada Recovery Sickness Benefit (CRSB). The Canada Recovery Sickness Benefit (CRSB) gives income support to employed and self-employed individuals who are unable to work because they are sick or need to self-isolate due to COVID-19, or have an underlying health condition that puts them at greater risk of getting COVID-19. ... If you are eligible for the CRSB, you can receive $500 ($450 after 10% taxes withheld) for a 1-week period. If your situation continues past 1 week, you will need to apply again. You may apply up to a total of 2 weeks between September 27, 2020 and September 25, 2021. Tax Alert! The CRSB is treated as income and will be included on the T4A issued by the government. Again, you could owe additional taxes on that benefit depending on your total income and tax bracket. In the next post, we will discuss the Canada Recovery Caregiving Benefit (CRCB).

COVID-19 Benefits and taxation (Part 4) Today we will talk about the CANADA RECOVERY BENEFIT (CRB). When the government launched the simplified EI program, they also rolled out the CRB program for gig workers and people who are self-employed (and therefore don't qualify for EI). Recipients receive up to $500 per week for up to 26 weeks (less a 10% tax holdback). CRA will provide you with a T4A tax slip for CRA-administered COVID-19 benefit amounts you received in 2020.... However, you will have to pay back $0.50 cents of every dollar in net income that you earned over $38,000, excluding the amount you received from the CRB program. It's totally confusing, we know. So let's say you've received CRB payments and you have whatever income you have made. If you received CRB and made up to $38,000 for the year in net income (including CERB, CRCB and CRSB but not including the CRB) you don't have to pay back CRB. But let's say you made $39,000 in net income for the year (not including the CRB)--you would be $1,000 over the $38,000 earning limit. Because you have to reimburse 50% of the net income you earn above the $38,000, you have to pay 50% of $1,000, or $500. You will not have to pay back more than your benefit amount for that year. Tax Alert! The amounts that must be repaid on the CRB will not be included in your taxable income, but will instead be included in the amount payable on your tax return and will be due the same time as your income tax return for the year. Tomorrow we will talk about Canada Recovery Sickness Benefit (CRSB)

COVID-19 Benefits and taxation (Part 3) If you would like to see any of the previous information posted, please go to our facebook page WAVE Small Business Solutions Today I will talk about the SIMPLIFIED EMPLOYMENT INSURANCE (EI) PROGRAM. Starting September 27, 2020, the government rolled out the new EI program to replace CERB for people who still needed financial support. The minimum benefit rate is $400 per week and recipients get at least 26 weeks of regular benefits (un...less they are employed again sooner than that). The advantage of this program is that you're still eligible for it even if you receive other income. (you will have to disclose this when you file the standard biweekly reports required while you are on EI) You can keep 50% of this additional income - up to 90% of the weekly insurable earnings used to calculate your EI benefit amount. Here is the tax alert! EI is also considered income and has to be reported on you tax return. But unlike CERB, some taxes are removed by the government before you even get it. In some cases, (like if you have other income) you may need to pay additional taxes on it. How will you know? When you receive your T4E slip for EI, you will use the amount (as well as any other income) to calculate your federal and provincial taxes. Tomorrow we will talk about the Canada Recovery Benefit (CRB).

COVID-19 Benefits and taxation (Part 2) As mentioned in yesterday's post, everyday this week I will be posting tax alerts on each of the government COVID benefits that were rolled out during 2020. Personal taxes are calculated based on your income. All the money you brought in over the year, be it from salary, a business, investments, capital gains, and YES -- SOME GOVERNMENT ASSISTANCE PROGRAMS, etc. -- minus any qualified deductions.... CANADA EMERGENCY RESPONSE BENEFIT (CERB) This one is a dozy when it comes to taxes, so we will start with it. CERB offered income support of $2,000 per month (or $500 per week every four-week eligibility period) if you lost your job, your income was reduced, or if you had to stay home to help take care of family, This benefit was available for up to 28 weeks between March 15 and September 26, 2020. The total you could apply for was $14,000. TAX ALERT! CERB is considered income and the benefits received were not "taxed at the source" What does this mean? It means that if you received CERB you will receive a T4A slip from the government with the total amount you received. This amount MUST BE filed as income on your return--just like any other income. How much you will owe will depend on your tax bracket, which is based on your overall income, not just your CERB payments.