The past few weeks have been a tumultuous time for business owners. With everything going on due to the current COVID-19 pandemic, the Government of Canada has unveiled an $82 billion package to help steer our country through this unprecedented economical time. Much of that money will be going towards helping businesses. In this article we’ll take a closer look at everything that’s been announced, and be sure to check out our article on Canada’s fiscal response for individuals to see what other measures have been enacted.
Small Employer Wage Subsidy
This measure is aimed at helping employers who are facing a decline in revenue keep their workers by offering a temporary subsidy on their wages. Eligible small employers will be able to benefit immediately from the measure by reducing the amount of remittance that’s withheld for income tax purposes on an employees’ remuneration. For up to three months an employer will receive a subsidy equal to 10 per cent of remuneration paid during that time period, for a maximum subsidy of $1,375 per employee or $25,000 per employer. Employers who are able to access this benefit include corporations that are eligible for the small business deduction as well as charities and nonprofits.
Unsure if your business qualifies for the new subsidy? Book a free consultation with us today and let us help you find out!
Tax Flexibility for Businesses
- Any tax payments a business owes can now be deferred until September 1, 2020. This includes balances due or instalments. There will also be no interest or penalties applied to the aforementioned amounts during this time period.
- The CRA is also allowing digital signatures for the T183CORP which allows a tax preparer to file on behalf of a business or corporation. This measure is temporary and is being implemented to reduce the need for taxpayers and tax preparers to meet in person amid COVID-19.
Need help preparing your business or corporate tax return? Call us today at 403-605-6887 and make sure you aren’t overpaying the CRA.
$10 Billion of Additional Support Through the BDC and EDC
The Canadian government has created the Business Credit Availability Program (BCAP) in response to COVID-19. This program will primarily support small and medium-sized businesses as they search for credit solutions during these uncertain economic times. The BDC and EDC will be working with private lenders to source and facilitate these credit solutions for small and medium-sized businesses. These businesses should first contact their financial institutions to see if assistance can be provided through them. If the needs of the business exceed what the financial institution can provide then they will work with the BDC and EDC to access additional resources provided under the BCAP.
Greater Liquidity Through the New Insured Mortgage Purchase Program
This measure is aimed at freeing up more liquidity among the major banks by having the federal government purchase up to $50 billion of insured mortgage pools through the Canada Mortgage and Housing Corporation (CMHC). By providing long-term stable funding to banks and mortgage holders the government is hoping to keep credit readily available to individuals and businesses.
At Isaac Achal Professional Corporation we understand this is a scary and uncertain time for small to medium-sized businesses. A complete and clear snapshot of your business’ financial health is more crucial than ever. With more than 15 years of experience our trusted Chartered Professional Accountants can be counted on to steer you along the right financial path. Book a free consultation today so we can get started on making your business work for you, and ensure you aren’t overpaying the CRA.
