Further to our blog posting from yesterday, here is an update concerning financial relief measures enacted by the Government of Canada and announced by the Province of Ontario.
Government departments and agencies are scrambling to
implement programs to aid those who find themselves out of work due to the
impact of the COVID-19 pandemic, and for businesses particularly small and
medium size enterprises in various industry sectors.
Understandably the initial program response announced late
last week has been revamped considerably in an attempt to simplify eligibility,
streamline delivery and increase access to financial assistance.
In brief, the previously announced Emergency Care Benefit and Emergency Support Benefit programs have been replaced with the CANADA EMERGENCY RESPONSE BENEFIT (CERB) program. The House of Commons has passed the requisite legislation to implement CERB, introduce an additional one-time payment under the GST/HST program, provide eligible small employers with a temporary wage subsidy and other measures. Royal Assent making these provisions the law was just announced.
The estimated cost of the new program has swelled from an
estimated $ 27 Billion to $ 52 Billion.
If you have questions about these measures, we’re here to
help! Please contact any of the partners
or managers of the firm (listed under the “Team” tab on our website and they
will do their utmost to get you the answers you need.
CANADA EMERGENCY RESPONSE BENEFIT (CERB)
CERB will provide financial assistance to wage earners,
contract workers and the self-employed whether they are Employment Insurance
(EI) eligible or not, who find themselves in one of the following situations:
They have lost their job, are sick, quarantined,
or taking care of someone who is sick with COVID-19
Working parents who must stay home without pay
to care for children who are sick at home or are home because school and
daycare centres are closed.
Workers who are still employed, but are not receiving
income because of work disruptions due to COVID-19
To be eligible you must be a worker who ceases working for
14 consecutive days within the four week period in respect of which you are
applying for assistance, and that during this cessation period you may not
receive employment or self employment income, EI benefits, certain provincial
allowances related to care of new born children or for the purposes of an
adoption or other income yet to be prescribed.
The portal to access the CERB program is expected to be
available on April 6th with payments flowing within 10 days. The benefits would be paid every four weeks
from March 15, 2020 until October 3, 2020 and be paid at a monthly amount of $
2,000.
If you are currently receiving EI regular or sickness
benefits at this time, you should not apply to the CERB program. If however your EI benefits end before
October 3, 2020 and you are still unable to work due to COVID-19, you can apply
for benefits under CERB.
TEMPORARY WAGE SUBSIDY FOR EMPLOYERS
As outlined in our previous messages this program will provide a subsidy equal to 10% of wages paid for a 3-month period to a maximum amount of $ 25,000 per business with a cap of $ 1,375 per employee.
Corporations eligible for the small business deduction, individual employers, certain partnerships, non-profit organizations and registered charities will be eligible for this subsidy.
The subsidy can be accessed by reducing source deduction payments otherwise required of the employer. Source deductions contributed by the employee will continue to be required to be remitted.
ONTARIO ANNOUNCEMENT
The Ontario Government made a number of fiscal announcements to help the Province deal with the effects of the COVID-19 virus. The spending initiatives will increase the provincial deficit from $ 10 Billion to $ 20 Billion for the 2020-2021 fiscal year.
Some of the key
measures in this announcement included the following:
Parents will receive a one-time cash payment of
$ 200 for every child under 12. This
amount is increased to $ 250 if the child is disabled
New OHIP fee codes will be introduced allowing physicians
to help patients over the phone and online
Healthcare spending for equipment will be increased
Long-term care facilities will receive funding
to increase screening and safety protocols
OSAP loan repayments will be suspended until
September 30th
Collection of most Provincially administered
taxes are being suspended for five months.
Readers should take note that Corporate and Personal income taxes are
administered by the Federal government and hence are subject to the relaxed
provisions announced by the Canada Revenue Agency last week
WSIB payments can be deferred for six months
Relief will be provided to certain consumers by
reducing electricity costs for 45 days by extending the hours of Off-Peak
pricing
The education portion of property taxes due June
30th can be deferred to September 30th if requested by
municipalities
Approximately 57,000 employers will be exempted
from the proposed increase in Employer Health Tax Premiums
A new corporate tax credit will be introduced,
called the Regional Opportunities Investment Tax Credit, for regions where
employment growth is lagging
Once again Hendry Warren LLP are committed to supporting our clients to guide them through these difficult times. As we learn more about these initiatives or become aware of additional programs, we will provide you with an update through email blasts and postings on our website. Please contact us to discuss how these measures may help you and your business. We are here for you.
Further to our blog posting from yesterday, here is an update concerning financial relief measures enacted by the Government of Canada and announced by theRead More
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We have been in Business since 1992 and had an accountant who was a family friend. When he retired, we needed to find a new accountant. Jacob at Hendry Warren was recommended to us through our Lawyer. We met with him and were impressed immediately; over the years we have gotten to know more of the staff and are equally impressed. They have done our company taxes, company valuations, share purchases, tax planning, covid relief, personal taxes, etc. All of which have gone very smoothly. Hendry Warren is aware of new legislation and has helped us grow as a company.
Rob Waterman (President at Waterman Sales Ltd.)
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Hendry Warren LLP has been easy to work with, dependable, personable and professional and are always available when we need them. The annual audit process is efficient and timely and their staff is always knowledgeable and well prepared.
Chris Jerome, Treasurer (Habitat for Humanity – National Capital Region)
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From the partners to the new graduates, the quality of service and advice were second to none…we rely heavily on the advice we are given from both an audit and tax perspective…I know that our firm can count on Hendry Warren LLP to be accurate, timely and professional at all times.
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In every instance where advice or assistance has been needed it has been provided with clarity and timeliness. And with a very satisfactory outcome. Our accounting staff have always appreciated the efficiency of Hendry-Warren team assigned to our audits and review engagements. We appreciate that Hendry-Warren LLP is able to support our needs as a paperless group of companies.
Gordon Miller (President, UNIGLOBE Premiere Travel)
Testimonial from Les Bell, - CPA, CA, President, Lincoln Heights Ford Sales Ltd.
Ian Hendry is a truly responsive and responsible partner in our business and has been for over 20 years. I would (and have) recommend his services to everyone.
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I have used Marie Fraser and her team at Hendry Warren for business, personal and special projects. Deep enough bench strength to cover anything, and small enough to pay attention.
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Jacob has been invaluable over the past 18 months in assisting with the incorporation and start-up of my new business venture. I trust Jacob's advice on complicated income tax and HST matters to allow me to focus on what is most important - my business!
Rupert Bonham-Carter (field_5cebff5066bfc)
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