ent® Chartered Professional Accountants Blog
COVID 19 ADDITIONAL MEASURES MARCH 27, 2020
Providing small business with wage subsidies
To help businesses keep and rehire workers, the wage subsidy has been increased from 10 percent to up to 75 percent for qualifying businesses, for up to 3 months, retroactive to March 15, 2020.
I expect further changes to the employer and the employee limits, and there is uncertainty as to how to access the funding, as this amount would exceed reasonable income tax remittances.
The New Canada Emergency Business Account
The new Canada Emergency Business Account program will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs.
To qualify, these organizations will need to demonstrate they have paid between $50,000 to $1 million in total payroll in 2019. Repaying the balance of the loan on or before December 31, 2022, will result in loan forgiveness of 25 percent (up to $10,000).
Deferral of Sales Tax Remittance and Customs Duty Payments
Businesses, including self-employed individuals, can defer until June 30, 2020 payments of the Goods and Services Tax / Harmonized Sales Tax (GST/HST), as well as customs duties owing on their imports.
The deferral will apply to GST/HST remittances for the February, March and April 2020 reporting periods for monthly filers; January 1, 2020, through March 31, 2020 reporting period for quarterly filers; and for annual filers, the amounts collected and owing for their previous fiscal year and installments of GST/HST in respect of the filer’s current fiscal year.
For GST and customs duty payments for imported goods, the deferral will include amounts owing for March, April, and May.