We’re endeavouring to provide access to various resources and information that might be helpful to all our clients and others.
The information below links to primary sources as we are aware of them.
While we are endeavouring to keep this information up to date and current, with the pace of changes that may not always be possible.
For more information, including how these measures may impact you, please contact us or give us a call at 416-931-5077.
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BUSINESS INFORMATION – CANADA
BUSINESS INFORMATION – USA
INDIVIDUAL INFORMATION – CANADA
INDIVIDUAL INFORMATION – USA
Current Deadlines
As of our latest information, the following deadlines are applicable for various tax returns to be filed or paid without penalty for the 2020 year which may be deferred:
Canada
- Canadian personal tax returns – Filed April 30, 2021 (June 15 for self-employed individuals)
- Canadian personal income tax balances – Paid by April 30, 2021
- Other deadlines are unmodified
US
- US personal tax returns – Filed by May 17, 2021
- US personal income tax balances – Paid by May 17, 2021
- US personal tax returns filed abroad – Filed by June 15, 2021
- For individual states, check with the state
Business Information - Canada
Emergency Commercial Rent Assistance (CERCA)
Emergency Commercial Rent Assistance (CERCA) is a program designed to help small businesses struggling as a consequence of the COVID-19 pandemic to continue to pay their rent and maintain the lease. Under the program, the government will pay 50% of the rent payment, the landlord will forgive 25% of the rent, and the tenant will be responsible for paying 25% of the rent.
To be eligible, the small business or not-for-profit organization must:
- pay no more than $50,000 a month in rent at any given location
- be experiencing a 70% drop in pre-COVID-19 revenues (determined by comparing average gross revenues from April to June of 2020 to ether
- the same months in 2019
- The average gross revenues from January to February
- Generate no more than $20 million dollars between the parent company, subsidiaries, and other associated corporations
If you are a landlord, you are eligible if you:
- Have an impacted small business tenant
- Are the registered owner of the commercial or mixed-use property
- Enter into a legally binding rent reduction agreement to reduce rent by at least 75% for the period of the program
- Ensure the rent reduction agreement includes
- A moratorium on eviction for the period during which the property owner agrees to apply the loan proceeds
- An acknowledgement that the forgiven rent will never be recoverable
The rent subsidy under this program will cover the period between April and September 2020, and support payments can be made retroactively to April 1, 2020.
Updated by Kwesi Opoku, December 2, 2020
Canada Emergency Community Support Fund (CECSF)
April 21st, The Canada Emergency Support Fund was announced for Charities.
It will allow community organizations to adjust their services to meet the needs of vulnerable Canadians in the face of COVID-19. Among other things, community organizations may use the funds to:
- Expand home deliveries of groceries or medication;
- Transport seniors or people with disabilities to appointments
- Widen the reach of helplines that give information and link people to services
- Replace in-person, one-on-one contact with contact through phone calls, texts or the Internet
- Train volunteers on health and safety so that they can continue to make their invaluable contributions to the COVID-19 response
The Government will disburse funds through national partners, such as the United Way Centraide Canada, the Canadian Red Cross, and Community Foundations of Canada. Community organizations will be able to apply for funds through the national partners or their local entities. The partners and their networks are working as quickly as possible to set up application processes.
Updated April 2, 2020, April 14, 2020 Ian Edmonds; April 21, 2020 Tara McElmurry
Business Credit Availability Program (CEBA)
The Canada Emergency Business Account (CEBA) allows businesses to apply for funding through their regular bank to help cover operating costs. The CEBA is an interest-free loan of up to $40,000 for businesses with total payroll in 2019 between $20,000 and $1.5 million or specified “Non-Deferrable Expenses” of between $40,000 and $1.5 million.
This loan has now been expanded to $60,000 with $20,000 being forgivable as long as the balance is repaid by December 31, 2022.
Updated December 9, 2020, Ian Edmonds
WSIB Deferral
Ontario’s Workplace Safety and Insurance Board has introduced deferrals of both filing and payments until August 31, 2020 for filers.
Specifics can be found here.
Updated April 2, 2020, Ian Edmonds
Other Canadian Corporate Taxes
As of March 27, 2020 the payment deadline for GST/HST (for all entities) that was due between March 15, 2020 and June 30, 2020 is now due June 30, 2020.
CPA Canada has asked, and had confirmed, that relief for other taxes (GST/HST, payroll taxes, Part IV, and others) is likely not expected, as these taxes are normally withheld or collected from other taxpayers.
Originally March 24, 2020, Daria Romaniello
Updated March 27, 2020, Ian Edmonds
Canada Emergency Rent Subsidy (CERS)
The Canada Emergency Rent Subsidy (CERS) is a program aimed to specifically support businesses struggling to pay their commercial rent due to shutdowns and other health safety measures recommended by various levels of government. Unlike its predecessor program, CERCA, this subsidy program does not require the participation of landlords.
The program will provide a base subsidy of up to 65% of your commercial rent, plus a top-up of up to 25% of your rent during government-mandated lockdowns.
To qualify for the program, an applicant must:
- Have had a CRA business number as of September 27, 2020, or had a payroll account on March 15, 2020, or another person or partnership made payroll remittances on your behalf
- Are an eligible business, charity, or non-profit (public institutions do not qualify)
- Experienced some drop in revenue (there is no minimum revenue drop)
- Have eligible expenses (i.e. arms-length payments for rent, mortgage payments, property taxes, utilities, etc.)
The program covers the periods between September 27, 2020, and June 30, 2021. Applications can be made no longer than 180 days after the end of an application period.
Updated by Kwesi Opoku, December 2, 2020
Canada Emergency Wage Subsidy (CEWS)
The Canada Emergency Wage Subsidy is a 75% wage subsidy for qualifying businesses who have had monthly revenue decreases of more than 15% in March and 30% in later months (as compared to the same month in the prior year or specified prior months). Wages must continue to be paid to qualify for this benefit.
Note: Effective July, the requirement for a decline in revenue is being removed and the program updated to allow for businesses that have had some recovery.
Special rules exist for specified employees (owning more than 10% of the company) to ensure wages had been paid prior to these programs being announced as well.
This is available to most companies (CCPCs), partnerships, non-profit organizations, and registered charities. This program has rules to ensure appropriate interactions with both the 10% wage subsidy and the Canada Emergency Response Benefit.
April 21st, the CRA launched an online calculator to guide employers through a step-by-step calculation of the CEWS and enables employers to determine the subsidy amount they can expect to claim based on the information that they enter into the calculator.
April 27th, businesses may apply for CEWS through their CRA My Business Account. They expect 90% of applications to be processed and payments will start going out no sooner than May 5th.
We would encourage you to verify and if needed update your direct deposit information and mailing address through your CRA My Business Account.
Updated April 2, 2020, April 14, 2020 Ian Edmonds April 21, 2020 Tara McElmurry
Bank of Canada Rate Cut
The Bank of Canada has now lowered its overnight rate to 0.25%.
While this only directly impacts banks and other finanical institutions, it will usually indirectly benefit other businesses and individuals.
Updated March 27, 2020, Ian Edmonds
Temporary Wage Subsidy
The Temporary Wage Subsidy is designed to reduce employer’s wage costs by reducing the remittances they have to make to CRA for payroll paid between March 18, 2020 and June 20, 2020.
This is available to most companies (CCPCs), partnerships, non-profit organizations, and registered charities. This program is mutually exclusive with the Canada Emergency Wage Subsidy.
Updated March 23, 2020, Ian Edmonds
Business Information - USA
Extension Granted by IRS
The IRS has granted an automatic extension until July 15, 2020, for all returns with an original due date of April 15, 2020.
The additional time is allowed for both filing and payment of tax owed. No interest or penalties will be assessed before July 15.
Updated March 23, 2020, Amy McKenzie
State Filing Deadlines
While most states are expected to mirror the federal extension from April 15th to July 15th, they are not always in sync.
In addition, the state extension may also apply to property tax, sales tax and other local taxes.
Updated March 24, 2020, Nalini Ramki
Individual Information - Canada
Home Office Expenses
CRA has now got around to clarifying how home office expenses will work for people working from home during the year. You’ll either be able to claim a simplified $2/day you worked from home or a detailed method indicating the actual cost of working from home.
A summary of the changes can be found here. Only certain expenses will be claimable, which can be searched here (expandable searchable list at the bottom).
Updated December 16, 2020, Ian Edmonds
Help for Students
Package for students enrolled in currently or starting post-secondary school in the fall in Canada.
– $1,250 a month from May-August for students making less than $1,000 a month who are not eligible for CERB. This amount will be increased to $1,750 for students who are disabled or are caring for another person
– Adding 76,000 jobs in addition to the Canada Summer Jobs Program
– Special funding for grad students. $291 million in aide in the form of scholarships, fellowships, and grants. Single semester extension for research scholarship or fellowships set to end between March and August 2020
– Special programs for indigenous students
– Doubling Canada Student Grants for the 2020/2021 School year
– Expanded eligibility for the Canada Student Loan ProgramIncrease the cap on student loans from $210 to $350 per week of study
Grants
– Canada Student Service Grant – Students volunteering in COVID-19 related roles will be eligible for $1,000 to $5,000 grant depending on hours
– Canada Service Corps – increasing available micro-grants from 1,800 to 15,000
Updated April 22,2020, Tara McElmurry
Wellness Together Canada Portal
The Government launched the Wellness Together Canada portal to provide confidential support to Canadians during this pandemic.
It will connect Canadians to the professional support and information they need to help address mental health and substance abuse issues they may be facing during these challenging times. If you need support, we are there.
Updated April 21,2020, Tara McElmurry
Canada Emergency Response Benefit (CERB)
The Canada Emergency Response Benefit is now available to be applied for. The CERB will provide $2,000 a month for most individuals who have lost their income due to COVID-19, and covers people who are self-employed.
You must have earned at least $5,000 in the previous 12 months, and the program appears to be based largely on a self-certification process. Applications are done through CRA My Account service, so ensure you have that account set up. If you don’t, the application is done by phone.
To help more Canadians benefit from the CERB, the Government will be changing the eligibility rules to:
- Allow people to earn up to $1,000 per month while collecting the CERB.
- Extend the CERB to seasonal workers who have exhausted their EI regular benefits and are unable to undertake their usual seasonal work as a result of the COVID-19 outbreak.
- Extend the CERB to workers who recently exhausted their EI benefits and are unable to find a job or return to work because of COVID-19.
Updated March 25, 2020, April 21,2020, Tara McElmurry; April 14, 2020, Ian Edmonds
Consolidated Program and Information Guide
Assoicate Professor Jennifer Robson has provided this guide of information for both tax credits and also other programs that are available to Canadians.
While we have not directly verified the information, Dr. Robson provides sources for the information available.
Updated April 1, 2020, Ian Edmonds
CRA's My Account
CRA’s My Account Service is not a new service, but it will be used to roll out benefits that are being offered.
Signing up can take time, and the system is likely to become more congested as more people look to sign up.
If you are planning to access any of the personal benefits being introducted, you are encouraged to sign up for this program.
Updated March 31, 2020, Ian Edmonds
Bank of Canada Rate Cut
The Bank of Canada has now lowered its overnight rate to 0.25%.
While this only directly impacts banks and other finanical institutions, it will usually indirectly benefit other businesses and individuals.
Updated March 27, 2020, Ian Edmonds
Canada's Consolidated Plan
The Government of Canada has consolidated many of their responses here.
Updated March 27, 2020, Ian Edmonds
Reduced RRIF WIthdrawal Amounts
Registered Retirement Income Funds (RRIF) have minimum annual withdrawal amounts.
Those minimum withdrawals have been reduced for the 2020 calendar year.
Updated March 27, 2020, Ian Edmonds
GST/HST Credit Changes
Anyone receiving the GST/HST quarterly credit will receive additional benefits as part of the May payments.
Updated March 27, 2020, Ian Edmonds
Canada Child Benefit
Canda Revenue Agency to provide a top-up of $300 per child on top of what you receive as part of the normal May payment.
Updated March 24, 2020, Ola Adeyemi
Employment Insurance Sickness Benefit
Improved Access to Employment Insurance Sickness Benefit is intended to provide Canadians without paid sick leave with easier access to EI.
Individuals who are sick or must stay home to care for children can have the requirement to provide a medical certificate waived in order to more easily access EI sickness benefits.
Updated March 23, 2020, Kwesi Opoku
Individual Information - USA
Expanded Unemployment
Benefits will vary by state due to differences in plans. The Federal plan provides the following:
- Expands who is covered to include independent contractor and self-employed individuals unable to work due to COVID-19.
- Provides up to an additional $600 per week to any State benefits you might receive.
- Provides states funding to waive one-week of waiting periods for unemployment. (please check the specifics for your state)
- Extends benefits for an additional 13 weeks.
- Provides funding to “short-time compensation” programs, to allow for prorated unemployment benefits for individuals who have had their hours cut due to COVID-19.
Please check with your state’s unemployment program for your state specific information. The full legislation can be found here.
Updated April 1, 2020, Tara McElmurry
Stimulus Bill Details
This is a great article that shows the tax rebate amounts that you could expect based on your filing status and income under the stimulus package issued by the IRS.
The IRS will use your 2019 tax return (if already filed) otherwise will use the 2018 tax return to determine the amount.
Be aware that the stimulus payments are based on your 2020 income. If it’s over certain thresholds, you may not qualify, or may have to repay amounts you received.
Updated March 30, 2020, Nalini Ramki
Extension Granted by IRS
The IRS has granted an automatic extension until July 15, 2020, for all returns with an original due date of April 15, 2020.
The additional time is allowed for both filing and payment of tax owed. No interest or penalties will be assessed before July 15.
Updated March 23, 2020, Amy McKenzie
Direct Deposit for Stimulus Payments
If you have not yet filed your 2019 taxes, or have not provided your direct deposit information to the IRS, direct deposit information can be entered here.
This program is an advance of a 2020 credit, so if your 2020 income will be too high, or you will not be a US resident during 2020, you should not apply for this payment.
Updated April 1, 2020, April 14, 2020, Ian Edmonds
State Filing Deadlines
While most states are expected to mirror the federal extension from April 15th to July 15th, they are not always in sync.
In addition, the state extension may also apply to property tax, sales tax and other local taxes.
Updated March 24, 2020, Nalini Ramki
Families First Coronavirus Response Act
The Families First Coronavirus Response Act has been passed to provide support for both employers and employees in the United States.
It requires employers to grant employees paid leave under certain conditions. In addition, it contains provisions for reimbursing employers, through the use of tax credits, for providing such leave.
The law also provides some relief to self-employed taxpayers.
Updated March 23, 2020, Amy McKenzie