Weekly Update – 30 September 2020
Welcome back to our Weekly Update. We hope you and your family are safe and doing well.
Ottawa Extends COVID-19 Support Programs for Businesses
The federal government says it will extend support programs for businesses including the Canada Emergency Wage Subsidy through to next summer, expand the Canada Emergency Business Account to assist businesses with fixed costs, and improve the Business Credit Availability Program. Furthermore, financial support will be introduced for industries that have been hit particularly hard by the pandemic, including the travel, tourism, hospitality, and cultural industries.
10% Temporary Wage Subsidy for Employers
The 10% Temporary Wage Subsidy for Employers (TWS) is a 3-month measure that allows eligible employers to reduce the amount of payroll deductions they need to remit to the Canada Revenue Agency (CRA).
The subsidy is equal to 10% of the remuneration you pay from March 18 to June 19, 2020, up to $1,375 for each eligible employee. The maximum total is $25,000 for each eligible employer.
If you need help in applying for this wage subsidy and other types of government assistance you may be eligible for, feel free to drop us a message.
New T4 Reporting Requirements
For the 2020 tax year, the Canada Revenue Agency (CRA) will be introducing additional reporting for the T4 slip, Statement of Remuneration Paid.
Additional reporting requirements will apply to ALL employers and will help the CRA validate payments under the Canada Emergency Wage Subsidy (CEWS), the Canada Emergency Response Benefit (CERB), and the Canada Emergency Student Benefit (CESB).
For guidance on this new reporting requirement or other compliance concerns, you may contact us.
Income Tax Filing and Payment Deadline
The CRA extended the payment due date for 2019 individual tax returns and 2019 or 2020 corporation, or trust returns, as well as for instalment payments, from September 1, 2020 to September 30, 2020. This means today is the deadline for the filing and payment.
The CRA will also waive arrears interest on existing tax debts related to individual, corporation, and trust income tax returns from April 1, 2020, to September 30, 2020.
However, this doesn’t cancel penalties and interest already assessed on a taxpayer’s account prior to this period.
More information about these tax deadlines can be found here. Alternatively, you may get in touch with us for your tax-related concerns.
Google Canada Launches Tool to Help Small Businesses Go Global
Google Canada has launched Market Finder, which is a one-stop-shop for Canadian small businesses seeking to go global. This free tool will help them identify the best markets for their products or services and prepare customized business plans using detailed market insights.
There are also videos and guides available to help small businesses prepare for new markets and educate in areas such as logistics, localization, and international payments.
Are you looking to pivot and transform your business by going online and boosting your digital capabilities? Drop us a message so we can schedule a consultation and discuss how we can make this possible.
New Canada United Small Business Relief Fund
The Canada United Small Business Relief Fund brings together financial institutions and business associations to support small businesses affected by COVID-19.
Starting August 31, the fund provides up to $5,000 in funding toward recovery efforts such as buying personal protective equipment, renovating physical spaces, or developing e-commerce capabilities.
This new funding is being managed by the Ontario Chamber of Commerce on behalf of the national Chamber network.
Assistance for Businesses in Canada
If you’re wondering what assistance is available to your business, please get in touch with us. There is a range of programs and grants including the Canada Emergency Business Account (CEBA), the Co-lending Program, the Canada Emergency Wage Subsidy (CEWS), Canada Emergency Commercial Rent Assistance (CECRA) and more.
The application deadline for Canada Emergency Business Account (CEBA), which provides eligible small businesses with interest-free $40,000 loans, will be extended until the end of October.
Please don’t hesitate to contact us and we will help you assess based on your current financial situation and business needs.
How Small Businesses Can Source Finance During COVID-19
Although there are government funding schemes and support available, you might still need alternative finance to keep your business going.
If you are not sure where to turn for funding, consider these three sources of finance:
- External sources– This type of finance come from entities outside the business in the form of business loans, merchant cash advance, and invoice financing.
- Internal sources– This is sourcing funds from within the business, typically in the form of share capital and selling of assets.
- Personal sources– This means using your personal funds to finance certain elements of your business. This could mean using your personal savings and investments and selling your personal property.
If your small business is struggling due to the impacts of COVID-19, get in touch with us so we can help you assess your options and plan your business recovery.
Digital Main Street Grant
The Digital Main Street Grant is a $2500 grant for small businesses to adopt new technologies and embrace digital marketing. You can read more here or drop us a message if you need assistance in taking advantage of this new grant.
Get in touch
Contact us if you have any questions or want to discuss your next steps for your business.