TN CPA Professional Blog
The TN CPA Team is your source for the latest Canadian tax news and updates on changing tax laws.
We are pleased to provide a variety of resources on accounting, bookkeeping taxation, and other related subjects that we hope will be helpful to both individuals and businesses.If you have any questions, simply contact us by email or call 416-318-6789. We will be happy to meet with you for a free, no-obligation consultation.
Canada's Covid 19 Economic Response Plan
Below is the updated overall information on Canada's COVID-19 Economic Response Plan from CRA's official portal. Should you have any questions, please do not hesitate to contact us.
Support for Business
1) Canada Emergency Wage subsidy:
- CRA proposed the new Canada Emergency Wage Subsidy that would cover 75% of salaries for qualifying businesses up to $847 per week, for up to 3 months, retroactively to March 15, 2020.
- This subsidy would be available to eligible employers that see a drop of at least 30% of their revenue in Eligible Periods. In applying for the subsidy, employers would be required to attest to the decline in revenue.
- Organizations that do not qualify for the Canada Emergency Wage Subsidy may qualify for the previously announced wage subsidy of 10 percent of remuneration paid from March 18 to June 20, 2020.
2) Canada Emergency Business Account (CEBA) will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period when their revenues have been temporarily reduced. To qualify, these organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019.
3) Income tax and GST/HST payment defer
- CRA allows all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020.
- CRA allows businesses to defer until June 30, 2020 payments of GST/HST and customs duties owing on imports for the period from Feb to Apr 20.
Support for individuals
1) Canada Emergency Response Benefit (CERB)
CRA will provide a taxable benefit of $2,000 a month for up to 4 months to eligible workers who have lost their income due to COVID-19. The application starts on Apr 6, 2020, using My CRA Account.
2) Canada Child Benefit (CCB) and GST credit
- CRA will provide an extra $300 per child through the Canada Child Benefit (CCB) for 2019-20. This will mean approximately $550 more for the average family.
- CRA will provide a one-time special payment starting April 9 through the GST credit for low- and modest-income families. The average additional benefit will be close to $400 for single individuals and close to $600 for couples.
3) Income tax return (T1) filing deadline will be deferred by CRA until June 1, 2020.
Wish you and your family to stay safe and healthy!
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