Padgett Business Services
200 McNab Street, Suite 102 Walkerton, ON, Canada

We would like to wish our clients, family and friends a safe and happy Canada Day this week! We would also like to remind everyone that our office will be closed on Wednesday, and will re-open for our regular business hours Thursday July 2nd 9am 5pm. Enjoy the holiday everyone!

We would like to wish our clients, family and friends a safe and happy upcoming Victoria Day! We would also like to remind everyone that our office will be closed on Monday May 18th, and will re-open for our regular business hours Tuesday May 19th 9am 5pm. Enjoy the long weekend everyone!

Announced today: Beginning April 6th, applications for the Canada Emergency Response Benefit (CERB) will be accepted by staggering birth dates. Canada Revenue Agency has promised that this will not affect the application approval process. The following is when you should apply based on your date of birth:... January to March 31: Apply April 6th, 2020. April to June 30: Apply April 7th, 2020. July to September 30: Apply April 8th, 2020. October to December 31: Apply April 9th, 2020. If you have any questions, please feel free to email us at [email protected] or give us a call at (519) 881-4523.

Here is an update of the governments' aid packages from Rick. We hear there were more announcements this morning and we will keep you posted on those too as we know more: I just sat in on a webinar describing, primarily, the $107 billion aid package that, I believe, received Royal Assent yesterday. There are a number of components to the support package however I wanted to give you the Cole’s Notes version of the components that may be of the most interest to you. I will ...keep this as short as possible: 1) Wage Subsidy 10% of wages, including owner’s wages, may be deducted from the income tax portion of Source Deductions each month. The limits are $1,395 per employee and $25,000 total per employer. 2) Work Sharing it appears that this is a highly administrative program but, in essence, it allows the employer to keep employees but on a work share basis. The difference in wages is then subsidized through the EI program. The fact that this is a highly administrative program makes it a bit unappealing although it is a great way of keeping valuable employees. N.B. employees can be part-time or full-time. 3) Business Credit Availability Program this is offered through BDC but must be referred through your bank unless you are an existing BDC client. Loans of up to $2 million are available to shore up working capital. The loan term is 36 months and may be advanced on an interest only basis for the first twelve months. A business plan, capitalization table, application for financing, personal statement of assets and liabilities, externally prepared financial statements and a cash flow forecast are all minimum requirements. 4) Tax Deferrals all corporate and personal income tax, including installments, which becomes due after March 18 is deferred to September 1. N.B. This does not apply to GST/HST or Source Deductions which must be filed and paid in accordance to the due dates established. Although there is a good chance that CRA will be forgiving when it comes to late filing penalties and interest charges the returns and remittances are not deferred. At the provincial level there are a couple of programs that will help cash flow. They are: 1) WSIB Deferrals premium reports and payments may be deferred to August 31, 2020 2) Hydro One Rates Time of Use (TOU) pricing has been altered to the lowest rate for a period of four months. It is estimated that this program will save the average household $20 per month and the average small business $150 per month. If you’re interested in additional details regarding the foregoing or if you want to learn more about all of the support programs in place, please contact us at your convenience. Thanks Richard A. (Rick) Lekx President (519) 881-4523 - telephone (519) 881-7498 - cell (519) 881-4941 - fax www.biz-coach.ca