COVID-19 the Growing Pandemic: How does this effect my taxes and benefits?

It’s no secret that the world is currently facing a growing pandemic. With announcements coming out everyday, its hard to keep up with what we need to know regarding our benefits and taxes. Have no fear, Pam Little CPA is here with your cheat sheet on everything you need to know regarding taxes, benefits, and options during COVID-19.

 

Tax Deadline Updates

 

Personal Income Tax Filing June 1, 2020
Personal Income Tax Payment

(This includes the June 15, 2020, instalment payment for those who pay by instalments.)

September 1, 2020
Self-Employed Income Tax Filing June 15, 2020 (no change)
Self-Employed Income Tax Payment September 1, 2020
Corporation Tax Payment

(Applies to balances and instalments under Part 1 of the Income Tax Act due on or after March 18 and before September 1, 2020.)

September 1, 2020
GST/HST Payment

(Returns still must be filed on-time.)

June 30, 2020

 

 

COVID-19 Economic Response Plan Highlights for Individuals and Families:

 

  1. Canada Emergency Response Benefit

 

The federal government has introduced the Canada Emergency Response Benefit (CERB) to help support individuals who have experienced a loss of income due to COVID-19 which will provide a taxable benefit of $2,000 for a four-week period for up to 16 weeks.

In recent announcements the federal government has extended the CERB to part-time, contract based and/or seasonal workers if they fit into the following:

  •  earn up a maximum $1,000 per month
  • seasonal workers who have exhausted their EI benefits and are unable to start/continue their regular seasonal work as a result of the COVID-19 outbreak
  •  Workers who have recently exhausted their EI regular benefits and are unable to find a job or return to work because of COVID-19

 

To check your eligibility, please use this link:

https://www.canada.ca/en/services/benefits/ei/cerb-application.html

 

  1. Canada Child Benefits

 

The federal government will provide additional assistance to families with children by temporarily increasing Canada Child Benefit payments by an extra $300 per child with an average total increase of $550 per family.

 

  1. GST/HST Payments

 

There will be a one-time payment under the GST credit program on April 9, 2020, double the maximum annual GST/HST credit payment amounts for the 2019-20 benefit year.  The extra payment amount will automatically apply if a taxpayer normally receives the GST/ HST credit and have filed a 2018 tax return.

 

COVID-19 Economic Response Plan Highlights for Businesses:

 

  1. Canada Emergency Wage Subsidy

 

The subsidy covers 75% of an employee’s wages – up to $847 per week – for employers of all sizes and across all sectors who have suffered a drop in gross revenues of at least 15% in March, and 30% in April and May.

 

  1. Temporary 10% Wage Subsidy

 

The Temporary 10% Wage Subsidy is a three-month measure that will allow eligible employers to reduce the amount of payroll deduction required to be remitted to the Canada Revenue Agency (CRA).

 

  1. Canada Emergency Business Account

 

The new Canada Emergency Business Account 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 where 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.

 

These are a few of the main programs the federal government is offering at this time. Please note that these are changing almost daily and that some of these may be out of date at the time this newsletter is released. We do strive to keep up-to-date with these programs, please feel free to contact us for any further information.

Its important that now, more then ever, we come together to beat this pandemic. We are happy to continue our part in social distancing by offering our support through our online secure portal, for transferring your tax information and signatures. Pam Little CPA is here for all your tax needs. Got a question or need more information, please don’t hesitate to reach out to us. We hope you and your family are staying safe through these times.

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