Note from Sarah Collins, Office Simpified: As of April 1, 2020
Realistically: Let’s prepare for the next few months – not weeks. I urge that you do your best to file income taxes, HST, and corporate taxes on time. If it is not financially feasible to pay your amount owing, then take advantage of the deferral options listed below.
Set up your CRA My account for personal and business if you have not already done so, to access some of the programs listed below.
To do this visit: https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html for individuals, and https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/business-account.html for businesses. This process will take a few weeks to complete.
What has changed, and what your options are to financially persist through this pandemic?
- The CRA has extended filing dates and payment dates to help alleviate some financial burdens.
- Below, you will see the deferral dates for your personal taxes, business HST/GST payments, Payroll remittances, and Corporate Taxes.
- In addition to extended deadlines, the government has announced a few programs that you may be able to benefit from. All this information is from the Canada.ca website at https://www.canada.ca/en.html
Personal Income Taxes:
- Personal Income tax filing dates have been extended to be filed by June 1st and paid by Sept 1, 2020, without penalties and interest.
- Self-employed returns remain unchanged with a due date of June 15th but have an extended payment date to Sept 1, 2020.
***We advise that you File your income tax on time to make sure your benefits and credits are not interrupted (CCB, GSTC, and Trillium) commencing July 2020 for the 2020/21 year ***
CERB – Canada Emergency Response Benefit
- If you have ceased working for a 14-day period due to COVID-19, you are eligible to apply for CERB.
- This applies to employees, self-employed and contract workers, and those who would not qualify for EI.
- You must have an income of at least $5,000 in 2019 or in the 12-month period preceding your application in order to qualify.
- This program will be available on April 6th, 2020 (note from Patricia: They are staggering through a secure online web portal through the CRA My Account. To set this up now, https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html
This benefit would provide $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic. Monies should be available within 10 business days after applying and will be paid every 4 weeks for the period of March 15th-October 3rd, 2020.
The CERB would cover Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The CERB would apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI).”
Business Remittance Deferrals:
Payroll remittances (PD7A):
- This has remained unchanged as of April 1, 2020. Payments continue to be due by the 15th of the following payroll month.
WSIB has announced a relief package to defer premiums due March31-July 31, 2020 to August 31st, 2020
- If you are experiencing financial difficulties, the CRA has extended its HST payments deadlines:
- HST payments that are due March, April & May, can be deferred to June 30th, 2020.
- This means that no interest will apply if your payments or remittances are made by the end of June 2020.
- “The deadline for businesses to file their returns are unchanged. Those who are able to should continue to file their GST/HST returns on time reporting their net tax for the reporting period to help facilitate tax compliance and administration. However, recognizing the difficult circumstances faced by businesses, the CRA won’t impose penalties where a return is filed late provided that it is filed by June 30th.”
- GST/HST installment payments due on or after March 27, 2020, and before June 2020 can be deferred until June 30th, 2020. No interest will apply if the installment payment amounts are paid by the end of June 2020.
- To answer all of your questions regarding HST, please visit this FAQs page: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-gst-hst.html
- If your filing due date is between March 18th, and May 31st,2020 the extended deadline to file your return is June 1, 2020. If needed, you can defer payment until August 31, 2020. This relief would apply to tax balances due, as well as installments, under Part I of the Income Tax Act.
- No interest or penalties will accumulate on these amounts during this period.
Additional Measures to keep businesses afloat, and employees working:
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 programs will roll out in the three weeks after March 27 and interested businesses should work with their current financial institutions.
Employee Wage Subsidy:
- This program has been changed from the original 10% to 75% subsidy, and we are still waiting on details to be announced. This covers small, medium, and large businesses, charities, and non-profits.
- As of now, you will need to demonstrate that your revenue has been reduced by at least 30% due to the COVID-19 Pandemic, vs the same month last year.
- You will need to reapply monthly, and a portal will be available in next 3-6 weeks.
- Wage subsidy will be capped at $847 per week per employee (which is 75% of a $58700 salary).
- This will retroactive to March 15th, 2020 and cover a 3-month period of wages.
- Employers can expect to see funding in 6 weeks via direct deposit. The goal of this program is to keep employees employed and support their families financially while having a job to return to once this crisis is over. This will alleviate the financial pressure on the CERB program. It will be the employer’s responsibility to use these funds to pay their employees and do their best to ensure they are paying the remaining 25% of their wages. As information is made available, this site will be updated, please visit: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html