Massive Changes to the Temporary Wage Subsidy The government proposed to increase the wage subsidy from 10% to 75% of wages. However, no announcement was made whether the $1,375 per employee limit or the $25,000 per employer limit will be increased. We suspect that these may be increased because the intent seems to be to […]
Relief for Small Businesses Announced Read More »
The Temporary Wage Subsidy On March 25, 2020, the Canadian government passed Bill C-13 to enact legislative measures in response to COVID-19. Among these measures were various amendments to the Income Tax Act (the “Act”), including Section 153 of the Act. Subsection 153(1) of the Act deals with the withholding of tax and source deductions
Temporary wage subsidy: Pitfalls for Associated Corporations Read More »
On March 25, 2020, Rob Phillips, Ontario’s Minister of Finance, put forth the Province’s Economic and Fiscal Update, with a focus on responding to COVID-19. The details and how you can register for these benefits have not been provided yet but we will let you know as soon as these become available. Key Highlights Interest
Ontario’s Action Plan: Responding to COVID‑19 Read More »
The recent measures released by the government of Canada to combat the negative fallout from COVID-19 provides some relief to owner-managers of small businesses. While these measures do help, owner-managers may also position themselves in a better financial position by considering the following: Stop paying yourself a salary Owner Managers who pay themselves a recurring
Small Business Owners and COVID-19: Tax Planning to Preserve Cash Read More »
We developed a simple calculator to help small businesses calculate their Temporary Wage Subsidy. Download Link Click here to download the excel copy. Video on Wage Subsidy and how to use our Calculator Online Calculator Here’s the online version of the calculator. However, for a better experience, please download the excel using the link provided
Temporary Wage Subsidy Calculator Read More »
The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020. Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This
IRS extends filing & tax payment deadline to July 15th Read More »
On March 21, 2020, the CRA provided some clarity on the Temporary Wage Subsidy. Some details seem to be missing, but this provides a lot of answers we and our clients have been looking for. So here it is. Please refer to our calculator here. Our commentary is in red text. 1. What is the
COVID-19: CRA Provides Clarity on the Temporary Wage Subsidy Read More »
We continue to closely follow relevant updates concerning COVID-19. The government has announced the following measures to help alleviate concerns and financial hardships. Tax Relief Individuals T1 filing deadline from April 30, 2020 to June 1, 2020 (self-employed individuals have until June 15, 2020 to file as usual). Those getting the GST and Canada Child
COVID-19 Financial Measures Summary Read More »
CRA recently ruled that where a spouse worked in a company before he or she married the principal shareholder, the work that the spouse put in before marriage counts in assessing whether TOSI applies. In this particular ruling, the spouse, Ms. B, worked as a full-time employee in Opco for approximately 40 hours per week
Tax on Split Income (TOSI) and Pre-Marital Employment Read More »
Last week, the Ontario government proposed to cut Ontario’s small business corporate tax rate from 3.5% to 3.2%, effective January 1, 2020. The rate reduction would be prorated for taxation years straddling January 1, 2020. Corresponding to the rate reduction, the government proposes to reduce the dividend tax credit (DTC) rate on non-eligible dividends from
Ontario Reduces the Corporate Tax Rate for Small Businesses: The Good and the Bad Read More »
