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Preparing your financial statements using GIFI

The GIFI codes identify items that are usually found on a corporation’s financial statement (balance sheets, income statements, and statements of retained earnings). Each item is assigned its own unique code. This allows us to collect financial statement information in a standardized format. For example, the item “Cash” is assigned code 1001 and “Office expenses” is assigned code 8810.

Your method of preparing and filing your T2 return determines how your financial statement information is prepared using the GIFI codes.

Include the same level of detail using the GIFI codes as you would with a traditional financial statement. For example, if your corporation’s financial statement includes 40 items, we expect to see the same number of GIFI codes.

With your financial statement, remember to complete the following:

Preparing your return using CRA-certified T2 software

Whether you are filing your return electronically using Corporation Internet Filing or by mailing the T2 Bar Code Return, your software provides the appropriate space to complete your financial statement information using GIFI codes.

Choose a GIFI code for each item you report on your financial statement. Enter only the item code and dollar amount.

Sending notes to your financial statement

If you have notes to your financial statement:

  • If you are filing by Corporation Internet Filing, enter the details in the notes to the financial statements in the GIFI section of your software program.
  • If you are printing and mailing a T2 Bar Code Return, send your notes on a separate piece of paper with your T2 Bar Code Return.

Preparing your return using CRA-issued paper forms

If you use paper forms to file your T2 return, you can prepare your financial statement as follows:

Corporations that are inactive throughout the tax year and that do not have balance sheet or income statement information to report are no longer required to attach schedules 100, 125, and 141 to their T2 return. However, they will be accepted if filed.

Sending notes to your financial statement

Send any notes regarding your financial statement on a separate piece of paper with your return.

Completing Schedule 141, Notes Checklist

You have to complete Schedule 141, Notes Checklist, even if you do not have any notes to your financial statement.

Whether you are filing your return electronically using Corporation Internet Filing or by mailing the T2 Bar Code Return, Schedule 141 is completed within the software.

See What is Schedule 141, Notes Checklist for more information.

Forms and publications

Original source: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-income-tax-return/completing-your-corporation-income-tax-t2-return/general-index-financial-information-gifi/preparing-your-financial-statements-using-gifi.html

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Get free tax help for your small business

In-person support to help you save time and money

The Canada Revenue Agency (CRA) offers free one-on-one visits or group seminars for small businesses and self-employed individuals across Canada through its Liaison Officer service. During a visit or seminar, the liaison officer will:

  • help you better understand your tax obligations and possible tax deductions
  • show you how to avoid common errors
  • give you an overview of helpful tools and services

The liaison officer will also provide recommendations on how to strengthen your bookkeeping system and, if you’re meeting one-on-one, offer to review your books and records.

Original Source: https://www.canada.ca/en/revenue-agency/campaigns/small-business-tax-help.html

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Small Business Accountant in Edmonton: Your Partner for Expert Financial Management

In the vibrant business landscape of Edmonton, small enterprises play a crucial role in driving the local economy. As a small business owner in this dynamic city, efficient financial management is paramount to your success. This is where the expertise of a skilled Small Business Accountant in Edmonton, like Bomcas Edmonton Tax Services, comes into play. In this article, we’ll explore the pivotal role of a Small Business Accountant in Edmonton and how they can assist your venture in navigating the complexities of financial management.

Why Your Small Business Needs an Accountant in Edmonton

  1. Expert Financial Insight: A proficient Small Business Accountant possesses in-depth knowledge of financial regulations, tax codes, and accounting practices specific to Edmonton. This expertise ensures accurate financial records, maximizing your tax deductions and optimizing your financial strategy.
  2. Time-Efficient Operations: By outsourcing your accounting tasks to professionals, you free up valuable time to focus on core business activities. This enhanced productivity translates into growth opportunities for your small business.
  3. Compliance and Risk Management: Edmonton’s financial regulations can be intricate. A skilled Small Business Accountant ensures your business adheres to local financial laws, reducing the risk of penalties or legal issues.
  4. Strategic Financial Planning: Collaborating with an accountant allows you to create a well-structured financial plan that aligns with your business goals. From budgeting to forecasting, their insights can guide your growth trajectory.

Why Choose Bomcas Edmonton Tax Services

  1. Tailored Solutions: Bomcas Edmonton Tax Services understands that each small business is unique. Their team crafts customized financial solutions that cater to the specific needs and goals of your venture.
  2. Local Expertise: With years of experience serving Edmonton’s business community, Bomcas Edmonton Tax Services possesses a deep understanding of the local economic landscape and the challenges small businesses face.
  3. Comprehensive Services: From bookkeeping and tax preparation to financial reporting and advisory services, Bomcas Edmonton Tax Services offers a comprehensive suite of solutions designed to streamline your financial operations.
  4. Personalized Guidance: Bomcas Edmonton Tax Services works closely with you to demystify financial jargon and provide clear, actionable insights. They become a partner in your success journey, offering guidance at every step.

Client Success Story: Growing a Local Retail Business

Bella’s Boutique, a local fashion retailer in Edmonton, faced challenges in managing its finances effectively. Bomcas Edmonton Tax Services stepped in to revamp their accounting processes. Through meticulous financial analysis, Bomcas identified cost-saving opportunities and helped Bella’s Boutique optimize their inventory management. With accurate financial reports, the boutique made informed decisions that led to a 20% increase in revenue within a year.

Conclusion

As a small business owner in Edmonton, partnering with a Small Business Accountant like Bomcas Edmonton Tax Services can be a game-changer. With their localized expertise, comprehensive solutions, and personalized guidance, you can focus on growing your business while leaving the complexities of financial management in capable hands. Embrace the advantage of a skilled Small Business Accountant in Edmonton and set your business on a path to sustainable success.

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Edmonton and Sherwood Park Trust income tax

Services and information

Trust Income Tax Return

Determine whether a trust should file a Trust Income Tax Return (T3), and where and when to a file a T3.

Trust Information returns – slips and summaries

Determine when a trust has to complete and distribute T3 slips, filing methods for T3 slips, and due dates.

Trust types and codes

Differentiate between testamentary and inter vivos trusts, and get the code numbers for different types of trusts.

Specified investment flow-through trust income and distribution tax

Determine what a SIFT trust is, and get the tax calculation formula for SIFT trusts.

Original Source: https://www.canada.ca/en/services/taxes/income-tax/trust-income-tax.html

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Sherwood Park and Edmonton Alberta Corporation income tax

Services and information

Corporation income tax overview

Summary of corporation tax rates, provincial and territorial corporation tax, and tax credits.

Corporation tax rates

Get federal, provincial, or territorial rates, and learn when to apply the lower or higher rate.

Provincial and territorial corporation tax

What’s new for corporations, reporting tax and claiming credits, and related forms and publications.

Federal tax credits

Federal income tax credits you may be eligible to claim.

Record keeping

Determine what constitutes a record, learn your responsibilities, and information about different types of records.

Dividends

Designation of eligible dividends, information about Part III.1 tax, and general and low-rate income pools.

Corporate tax payments

Paying instalments, paying your balance of corporation tax, and prepaying reassessments.

Reassessments

Request a reassessment of your T2 return, and learn the time limits for a reassessment.

Transfer pricing

International transfer pricing, including transfer pricing memoranda.

Foreign spin-offs

Foreign spin-offs for Canadian shareholders of foreign corporations.

Original Source: https://www.canada.ca/en/services/taxes/income-tax/corporation-income-tax.html

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Personal income tax

Services and information

Doing your taxes

This page sets out everything you need to know to do your taxes.

Your tax obligations

Determine your tax obligations and whether you need to file a tax return.

Tax slips

Review the slips you may receive from your employer, payer, or administrator.

Personal income

Determine what has to be reported as income on your personal income tax return.

Tax deductions, credits, and expenses

Claim tax deductions, credits, and expenses to reduce the amount of tax you must pay.

Tax refunds

Check the status of your refund, and when you can expect to receive your refund.

Tax payments

Make a tax payment, get information on paying by instalments, paying arrears, and payment arrangements.

Notices of assessment

Understand your notice of assessment (NOA) and find out how to get a copy.

Personal income tax rates

View the current and previous years’ tax rates for individuals.

More personal income tax

Get additional information about filing your personal income tax.

Original source: https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax.html

What is Income Tax Preparation?

You provide us with your tax forms and documentation, and our tax experts will take it from there. They’ll ensure everything is in order, prepare, review everything with you, and then file your taxes for you. You get to sit back and relax, knowing your taxes are in expert hands.

SHERWOOD PARK PERSONAL TAX MADE EASY

EXPERT HELP

Our tax professionals are experts in the ever-changing tax laws and benefits, as well as the nuances of your specific tax situation. Rest easy knowing your taxes are done right every time.

ONLINE ACCESS

Upload your documents to our Secure cloud-based application. Take it easy as we prepare, review, and file your tax forms.

YEAR-ROUND SUPPORT

Even if it’s not tax time, we’re always available to answer your questions as it relates to your Tax and accounting.

TALK TO AN EXPERT NOW

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Accounting

Accounting methods

On this page:

Farmers, fishers, and self-employed commission agents can use the cash method or the accrual method to report income. All other self-employment income must be reported using the accrual method.

Note for professionals

If you currently carry on a designated professional business and use billed-basis accounting, the billed-basis accounting method has changed. For more information, go to “Billed-basis accounting for professionals” in What’s new for small businesses and self-employed, and changes to the “Election to exclude your WIP” in Chapter 2 of the guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income.

Accrual method

When you use the accrual method you must:

  • report income in the fiscal period you earn it, no matter when you receive it
  • deduct expenses in the fiscal period you incur them, whether or not you pay them in that period

Incur usually means you either paid or will have to pay the expense.

For special rules, go to Prepaid expenses.

When you calculate your income using the accrual method, the value of all inventories, such as livestock, crops, feed, fertilizer, fish, fish by-products, supplies, and so on, will form part of the calculation. Make a list of your inventory and count it at the end of your fiscal period. Keep this list as part of your business records.

You can use one of the following methods to value your inventory:

  • Value all inventory at its fair market value (FMV). Use either the price you would pay to replace an item or the amount you would get if you sold an item.
  • Value individual items at cost or FMV, whichever is less. You can value items by group when you cannot easily tell one item from another. Cost is the price you incur for an item, plus any expenses to get it to your business location and put in a condition of use for your business.
  • For farmers, value livestock according to the unit price base. For this method, fill in form T2034, Election to Establish Inventory Unit Prices for Animals.

Use the same method you used in past years to value your inventory. The value of your inventory at the start of your 2019 fiscal period is the same as the value at the end of your 2018 fiscal period. In your first year of operating a business, you will not have an opening inventory at the start of your fiscal period.

Note for farmers and fishers

If you use the accrual method to calculate your farming or fishing income, calculate your cost of goods sold on a separate piece of paper. Form T2042 or form T2121 does not have a line to calculate this amount.

Cash method

Note for farmers

You can use the cash method of accounting for your farming activities, but must use the accrual method for separate business activities or for GST/HST/QST purposes. You must keep a separate set of records for each accounting method that you use.

When you use the cash method you must:

  • report income in the fiscal period you receive it
  • deduct expenses in the fiscal period you pay them

For special rules, go to Prepaid expenses.

If you use the cash method and receive a post-dated cheque as security for a debt, include the amount in income when the cheque is payable.

If you receive a post-dated cheque as an absolute payment for a debt and the cheque is payable before the debt is due, include the amount in your income on one of the following dates, whichever is earlier:

  • the date the debt is payable
  • the date you cash or deposit the cheque

Note

The post-dated cheque rules apply to income-producing transactions, such as the sale of grain or fish. They do not apply to transactions involving capital property, such as the sale of a tractor or boat.

When you use the cash method, do not include inventory when you calculate your income. There are, however, two exceptions to this rule.

Note for farmers

For more information, go to “Line 9941 – Optional inventory adjustment included in the current year” and “Line 9942 – Mandatory inventory adjustment included in the current year” in Chapter 3 of the guide T4002.

Change your reporting method

If you decide to change your method of reporting income from the accrual method to the cash method, use the cash method when you file your next income tax return. Make sure you include a statement that shows each adjustment made to your income and expenses because of the difference in methods.

If you decide to change from the cash method to the accrual method:

  • get permission from your tax services office
  • ask for this change in writing before the date you have to file your income tax return
  • explain why you want to change methods in your letter

The cash and accrual methods are different. The first time you file your income tax return using the accrual method, make sure you include a statement that shows each adjustment made to your income and expenses.

Forms and publications

Report a problem or mistake on this pageShare this page

Original Source: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/accounting-methods.html

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Accounting Tax

How much income tax do I have to pay

The amount of income tax you pay depends on how much money you earned in the past year minus any deductions and credits.

Your income tax rate is based on a combination of federal and provincial tax rates.

Most 2019 tax returns should be filed by April 30, 2020. If you are filing for a previous year, see the 2019 to 1985 tax rates.

Due to the COVID-19 pandemic response, the government has deferred the tax filing deadline to June 1, 2020.

Federal tax rates for the 2020 tax year

  • 15% on taxable income of C$48,535 or less
  • 20.5% on taxable income between C$48,535 and C$97,069
  • 26% on taxable income between C$97,069 and C$150,473
  • 29% on taxable income between C$150,473 and $214,368
  • 33% on taxable income over $214,368

Ontario (provincial) tax rates for the 2020 tax year

  • 5.05% on taxable income of C$44,740 or less
  • 9.15% on taxable income between $44,742, and $89,482
  • 11.16% on taxable income between $89,482 and $150,000
  • 12.16% on taxable income between $150,000 and $220,000
  • 13.16% on taxable income over $220,000

Find a list of federal and provincial tax rates for previous years.

Taxable income includes employment income, rental income and money you receive through some government programs.

Tax credits and deductions reduce the amount of tax you must pay. If you paid too much tax, you will get a refund. If you did not pay enough, you must pay the difference to the government. Find out more about What happens after I file my tax return?

Canadian residency for tax purposes is not the same as residency for immigration purposes. Find out more in Do I have to file a tax return?

For More Information

  • Newcomers to Canada – This guide is for first-time tax filers in Canada. It will help you determine if you are a resident for tax purposes, which is not the same as residency for immigration purposes. From the CRA.
  • Canada Revenue Agency (CRA) – The federal agency responsible for administering tax, benefits and related programs across the country. Their website provides detailed information about tax-related issues.
  • Frequently Asked Questions about Individual Taxation – Information and answers about tax rates and how to file your return. From the CRA.
  • General Income Tax and Benefit Package – A collection of forms and information sheets which you need to file your income tax return. From the CRA.
  • Ontario Tax Credits and Benefits – Learn about the different tax credits and benefits you can get to help you with living costs when you file your income tax return. From the Ministry of Finance.

Original source: https://settlement.org/ontario/daily-life/personal-finance/taxes/how-much-income-tax-do-i-have-to-pay/

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Accounting Other Accounting Services Payroll Accounting services in Alberta

Canada’s COVID-19 Economic Response Plan

The Government of Canada is taking immediate, significant and decisive action to support Canadians and businesses facing hardship as a result of the global COVID-19 outbreak.

On this page

Support for individuals

Individuals and families

  • Temporary salary top-up for low-income essential workersWe will work with provinces and territories through a new transfer to cost-share a temporary top up to the salaries of low-income workers (those who earn less than $2,500 per month on a full time basis), that the provinces and territories have deemed essential in the fight against COVID-19.This will provide a much needed boost to those on the front-line in hospitals, those caring for seniors in long-term care facilities, those working so hard to make sure that there that is food on our shelves and tables, and others.More details will be released shortly.
  • Increasing the Canada Child BenefitWe are providing up to an extra $300 per child through the Canada Child Benefit (CCB) for 2019-20. This will mean approximately $550 more for the average family.This benefit will be delivered as part of the scheduled CCB payment in May.Those who already receive the CCB do not need to re-apply.Apply for the Canada Child Benefit
  • Special Goods and Services Tax credit paymentWe are providing a one-time special payment starting April 9 through the Goods and Services Tax credit for low- and modest-income families.The average additional benefit will be close to $400 for single individuals and close to $600 for couples.There is no need to apply for this payment. If you are eligible, you will get it automatically.Learn more about the Goods and Services Tax credit
  • Extra time to file income tax returnsThe filing due date for 2019 income tax returns for individuals has been deferred until June 1, 2020. Any new income tax balances due, or instalments, are also being deferred until after August 31, 2020 without incurring interest or penalties.Consult all tax and payment datesNote: If you expect to receive benefits under the Goods and Services Tax credit or the Canada Child Benefit, we encourage you not to delay filing your 2019 income tax return to ensure that your entitlements are properly determined.
  • Mortgage payment deferralHomeowners facing financial hardship may be eligible for a mortgage payment deferral of up to six months.The deferral is an agreement between you and your lender. Typically, the agreement indicates that you and your lender have agreed to pause or suspend your mortgage payments for a certain amount of time. After the agreement ends, your mortgage payments return to normal and the deferred payments — including principal and accumulated interest – are added to the outstanding principal balance and subsequently repaid throughout the life of the mortgage.To know if you are eligible for a mortgage payment deferral or to learn what options are available, contact your lender — your bank or your mortgage professional.Learn more about mortgage payment deferral

People facing loss of income

  • Canada Emergency Response Benefit (CERB)We will provide a taxable benefit of $2,000 every 4 weeks for up to 16 weeks to eligible workers who have lost their income due to COVID-19.An online questionnaire will help us direct you to the service option that best fits your situation (i.e. eligibility for Employment Insurance benefits or not).Do not apply for the CERB if you have already applied for EI.Apply for the CERBYou can also apply over the phone: 1?800?959?2019 or 1?800?959?2041

Indigenous peoples

  • Addressing immediate needs in Indigenous communitiesWe are providing $305 million for a new distinctions-based Indigenous Community Support Fund to address immediate needs in First Nations, Inuit, and Métis Nation communities.These funds could be used for measures including, but not limited to:
    • support for Elders and vulnerable community members,
    • measures to address food insecurity,
    • educational and other support for children,
    • mental health assistance and emergency response services,
    • preparedness measures to prevent the spread of COVID-19.
    Learn more about the Indigenous Community Support Fund
  • Supporting Indigenous communities public health needs and preparednessWe are providing $100 million to support a range of federal health measures, including support for preparedness in First Nation and Inuit communities. These funds will:
    • respond to identified needs to update and activate pandemic plans
    • support an effective allocation of public health and primary health care capacity to respond to the COIVD-19 outbreak
    • align response efforts with scientific evidence as determined by a medical officer of health
    • address immediate needs in the short term
    Learn more about this support to Indigenous communities
  • Making personal hygiene products and nutritious food more affordableWe are providing an additional $25 million to Nutrition North Canada to increase subsidies so families can afford much-needed personal hygiene products and nutritious food.Learn more about Nutrition North Canada
  • Providing support to Indigenous post-secondary studentsWe are providing $75.2 million to offer additional distinctions-based support to First Nations, Inuit and Métis Nation post-secondary students

In addition to the measures above, Indigenous peoples can also access benefits listed under Support for individuals and Support for businesses.

People who need it most

  • Improving access to essential food supportWe are providing $100 million to national, regional, and local organizations across Canada to:
    • Purchase, transport and distribute food and other basic necessities
    • hire temporary help to fill volunteer shortages
    • implement safety measures, such as the purchase of personal protective equipment, to reduce the spread of COVID-19 among volunteers and clients.
    These organizations – including but not limited to Food Banks Canada, Salvation Army, Second Harvest, Community Food Centres Canada, and Breakfast Club of Canada – will work with partners to meet the urgent food needs of Canadians.
  • Supporting people experiencing homelessnessWe continue to support people experiencing homelessness during the COVID-19 outbreak by providing $157.5 million to the Reaching Home initiative.The funding could be used for a range of needs such as purchasing beds and physical barriers for social distancing and securing accommodation to reduce overcrowding in shelters.Learn more about the Reaching Home initiative
  • Supporting women and children fleeing violenceWe are supporting women and children fleeing violence, by providing up to $50 million to women’s shelters and sexual assault centres, including facilities in Indigenous communities, to help with their capacity to manage or prevent an outbreak in their facilities.Learn more about the funding objectives
  • Delivering essential services to those in needWe invested $350 million to support vulnerable Canadians through charities and non-profit organizations that deliver essential services to those in need.The investment will flow through national organizations that have the ability to get funds quickly to local organizations that serve vulnerable populations. It will support a variety of activities, such as:
    • Increasing volunteer-based home deliveries of groceries and medications
    • Providing transportation services, like accompanying or driving seniors or persons with disabilities to appointments
    • Scaling up help lines that provide information and support
    • Helping vulnerable Canadians access government benefits
    • Providing training, supplies, and other required supports to volunteers so they can continue to make their invaluable contributions to the COVID-19 response
    • Replacing in-person, one-on-one contact and social gatherings with virtual contact through phone calls, texts, teleconferences, or the Internet

Seniors

  • Reduced minimum withdrawals for Registered Retirement Income FundsWe reduced the required minimum withdrawals from Registered Retirement Income Funds (RRIFs) by 25 per cent for 2020.Learn more about Registered Retirement Income Funds
  • Supporting the delivery of items and personal outreachWe are contributing $9 million through United Way Canada for local organizations to support practical services to Canadian seniors. These services could include the delivery of groceries, medications, or other needed items, or personal outreach to assess individuals’ needs and connect them to community supports.Contact your local organization
  • Providing immediate and essential services to seniorsWe announced that organizations who received funding under the 2019-2020 New Horizons for Seniors Program community-based stream will be able to use their funding to provide immediate and essential services to seniors impacted by COVID-19.Activities can start immediately and can include:
    • supporting seniors in staying connected with their community and family by providing electronic devices, virtual activities and remote tutorials;
    • supporting the delivery of food and medication to self-isolated seniors at home;
    • assisting seniors to undertake essential activities, such as visits to the doctor;
    • hiring staff to replace a loss of a senior volunteer due to the outbreak;
    • providing information to seniors regarding how to care for themselves during the pandemic.
    Learn more about the New Horizons for Seniors Program

Youth, post-secondary students and recent graduates

  • Canada Emergency Student Benefit (CESB)We are proposing the Canada Emergency Student Benefit (CESB) that would provide support to students and new graduates who are not eligible for the Canada Emergency Response Benefit or Employment Insurance or unable to work due to COVID-19.This benefit would provide $1,250 per month for eligible students or $2,000 per month for eligible students with dependents or disabilities.This benefit would be available from May to August 2020.More details will be made available soon.
  • Creating new jobs and opportunitiesWe are expanding existing federal employment, skills development, and youth programming to create up to 116,000 jobs, placements, and other training opportunities to help students find employment and develop valuable skills this summer and over the coming months.Learn more about the programs
  • Launching a new national service initiativeWe are launching the Canada Student Service Grant (CSSG), which will help students gain valuable work experience and skills while they help their communities during the COVID?19 pandemic.For students who choose to do national service and serve their communities, the new CSSG will provide up to $5,000 for their education in the fall.More details will be made available on the “I Want to Help” platform soon.
  • Helping students continue their studies in the fallChanges to the Canada Student Loans ProgramWe are proposing changes to the Canada Student Loans Program (CSLP) to allow more students to qualify for support and be eligible for greater amounts.The changes would include:
    • doubling the Canada Student Grants for all eligible full-time students to up to $6,000 and up to $3,600 for part-time students in 2020-21. The Canada Student Grants for Students with Permanent Disabilities and Students with Dependents would also be doubled.
    • broadening eligibility for student financial assistance by removing the expected student’s and spouse’s contributions in 2020-21.
    • raising the maximum weekly amount that can be provided to a student in 2020-21 from $210 to $350.
    Learn more about Canada Student Grants and Loans
    Support for student researchers and post-doctoral fellowsWe are providing $291.6 million to support student researchers and post-doctoral fellows through the federal granting councils.Funding would support a one-semester extension for eligible students whose research scholarships or fellowships end between March and August 2020 and who intend to continue their studies. It would also provide a 3-month extension in funding for holders of federal research grants to support eligible trainees and staff paid out of these awards.Learn more about the Federal Granting Agencies
  • Supporting international students working in an essential serviceWe will remove the restriction that allows international students to work only a maximum of 20 hours per week while classes are in session, provided they are working in an essential service or function, such as health care, critical infrastructure, or the supply of food or other critical goods.This temporary rule change will be in place until August 31, 2020.Consult the Guidance on Essential Services and Functions in Canada during the COVID-19 Pandemic
  • Suspending repayment and interest on student and apprentice loansAll student loan borrowers will automatically have their loan repayments and interest suspended until September 30, 2020.Students do not need to apply for the repayment pause.This moratorium applies to the federal portion of student loans. Borrowers should check with their provincial or territorial student loan provider to see if payment is required on the provincial or territorial portion.Learn more about the moratorium on the repayment
  • Providing youth with mental health supportWe are giving $7.5 million in funding to Kids Help Phone to provide young people with the mental health support they need during this difficult time.Get the support you need

Support for businesses

Avoiding layoffs and rehiring employees

  • Canada Emergency Wage Subsidy (CEWS)The Canada Emergency Wage Subsidy (CEWS) supports employers that are hardest hit by the pandemic, and protect the jobs Canadians depend on.The subsidy generally covers 75% of an employee’s wages – up to $847 per week – for employers of all sizes and across all sectors who have suffered a drop in gross revenues of at least 15% in March, and 30% in April and May.The program will be in place for a 12-week period, from March 15 to June 6, 2020.Employers who are eligible for the CEWS are entitled to receive a 100% refund for certain employer contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan, and the Quebec Parental Insurance Plan paid in respect of employees who are on leave with pay.For employers that are eligible for both the CEWS and the 10% Temporary Wage Subsidy for a period, any benefit from the Temporary 10% Wage Subsidy for remuneration paid in a specific period will generally reduce the amount available to be claimed under the CEWS in that same period.Apply for the CEWS
  • Temporary 10% Wage SubsidyThe Temporary 10% Wage Subsidy is a three-month measure that will allow eligible employers to reduce the amount of payroll deduction required to be remitted to the Canada Revenue Agency (CRA).You are an eligible employer if you:
    • are a(n):
      • individual (excluding trusts),
      • partnership.
      • non-profit organization,
      • registered charity, or
      • Canadian-controlled private corporation (including a cooperative corporation) eligible for the small business deduction;
    • have an existing business number and payroll program account with the CRA on March 18, 2020; and
    • pay salary, wages, bonuses, or other remuneration to an eligible employee.
    Note: Partnerships are only eligible for the subsidy if their members consist exclusively of individuals (excluding trusts), registered charities, or Canadian-controlled private corporations eligible for the small business deduction.Learn more about the Temporary 10% Wage Subsidy for Employers
  • Extending the Work-Sharing programWe are extending the maximum duration of the Work-Sharing program from 38 weeks to 76 weeks for employers affected by COVID-19. This measure will provide income support to employees eligible for Employment Insurance who agree to reduce their normal working hours because of developments beyond the control of their employers.Apply to the Work-Sharing program

Access to credit

  • Business Credit Availability Program (BCAP)We established a Business Credit Availability Program (BCAP) to provide additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).BDC and EDC are working with private sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation, exports and tourism.This program includes:
    • Loan Guarantee for Small and Medium-Sized EnterprisesThrough the Business Credit Availability Program, Export Development Canada (EDC) is working with financial institutions to guarantee 80% of new operating credit and cash flow term loans of up to $6.25 million to small and medium-sized enterprises (SMEs).This financing support is to be used for operational expenses and is available to both exporting and non-exporting companies.Learn more about the Loan Guarantee for SMEs
    • Co-Lending Program for Small and Medium-Sized EnterprisesThrough the Business Credit Availability Program, Business Development Canada (BDC) is working with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements.The program offers differing maximum finance amounts based on business revenues.Financed amount:
      • 80 % provided by BDC
      • 20 % provided by your financial institution
      This support is available until or before September 30, 2020.Learn more about the Co-Lending Program for SMEs
    These programs are now available at various financial institutions and credit unions.
  • Canada Emergency Business Account (CEBA)The Canada Emergency Business Account (CEBA) will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.To qualify, these organizations will need to demonstrate they paid between $20,000 to $1.5 million in total payroll in 2019.Business owners can apply for support from the Canada Emergency Business Account through their banks and credit unions.Learn more about the Canada Emergency Business Account
  • Canada Emergency Commercial Rent Assistance (CECRA)We reached an agreement in principle with all provinces and territories to implement the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses. This program will lower rent by 75 per cent for small businesses that have been affected by COVID-19.The program will provide forgivable loans to qualifying commercial property owners to cover 50% of three monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May, and June.The loans will be forgiven if the mortgaged property owner agrees to reduce the small business tenants’ rent by at least 75% under a rent forgiveness agreement, which will include a term not to evict the tenant while the agreement is in place. The small business tenant would cover the remainder, up to 25% of the rent.Impacted small business tenants are businesses paying less than $50,000 per month in rent and who have temporarily ceased operations or have experienced at least a 70% drop in pre-COVID revenues. This support will also be available to non-profit and charitable organizations.It is expected that CECRA will be operational by mid-May, and further details will be announced soon.Learn more about CECRA
  • Rural businesses and communitiesWe are providing $287 million to support rural businesses and communities by providing them with much-needed access to capital through the Community Futures Network.Get help through your Regional Development Agency
  • Assisting innovative and early-stage businessesWe are investing $250 million to assist innovative, early-stage companies that are unable to access other COVID-19 business supports through the Industrial Research Assistance Program (IRAP).IRAP provides advice, connections, and funding to help Canadian small and medium-sized businesses increase their innovation capacity and take ideas to market.Learn how to apply
  • Young entrepreneursWe are providing $20.1 million in support for Futurpreneur Canada to continue supporting young entrepreneurs across Canada who are facing challenges due to COVID-19. The funding will allow Futurpreneur Canada to provide payment relief for its clients for up to 12 months.Learn more about Futurpreneur Canada
  • Businesses in the territoriesWe are making available $15 million in non-repayable support for businesses in the territories to help address the impacts of COVID-19. This support will assist businesses with operating costs not already covered by other Government of Canada measures.Apply to the Northern Business Relief Fund
  • Small and medium-sized businesses unable to access other support measuresWe are providing $675 million to give financing support to small and medium-sized businesses that are unable to access other COVID-19 business supports, through Canada’s Regional Development Agencies.Get help through your Regional Development Agency

Creating new jobs and opportunities for youth

  • Youth Employment and Skills StrategyWe are providing $153.7 million for the Youth Employment and Skills Strategy to help youth develop the skills and gain the experience they need to successfully transition into the labour market.Funding will support a range of measures in high-demand sectors such as agriculture, technology, health and essential services, creating over 6,000 additional job placements.Learn more about the Youth Employment and Skills Strategy
  • Student Work Placement ProgramWe are providing $80 million for the Student Work Placement Program to support up to 20,000 post-secondary students across Canada to obtain paid work experience related to their field of study.Find student work placement
  • Mitacs and The Business/Higher Education RoundtableWe are investing $40 million to support Mitacs in order to create 5,000 new job placements. The Business/Higher Education Roundtable (BHER) will also create a further 5,000 to 10,000 new student placements, by reorienting existing federal support and building online tools.Learn more about MitacsLearn more about BHER
  • Temporary changes to Canada Summer Jobs programThe Canada Summer Jobs program provides opportunities for youth to develop and improve their skills within the not-for-profit, small business, and public sectors, and supports the delivery of key community services.We are making temporary changes to the Canada Summer Jobs program to allow employers to:
    • receive an increased wage subsidy, so that private and public sector employers can also receive up to 100 per cent of the provincial or territorial minimum hourly wage for each employee;
    • extend the end date for employment to February 28, 2021;
    • adapt their projects and job activities;
    • hire staff on a part-time basis.
    Learn more about the Canada Summer Jobs program

Deferred payments

  • More time to pay income taxesWe are allowing all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act.No interest or penalties will accumulate on these amounts during this period. Consult all the tax and payment dates
  • Deferral of Sales Tax Remittance and Customs Duty Payments until JuneWe are allowing businesses, including self-employed individuals, to defer until June 30, 2020 payments of the GST/HST, as well as customs duty owing on their imports.Any GST/HST payment that becomes owing from March 27 until the end of May can be deferred until the end of June. For GST and customs duty payments for imported goods, deferral will include amounts owing for March, April and May.These amounts were normally due to be submitted to the Canada Revenue Agency and the Canada Border Services Agency as early as the end of March 2020.Learn more about the deferral of GST/HST tax remittances

Support for self-employed individuals

  • Canada Emergency Response Benefit (CERB)We will provide a taxable benefit of $2,000 every 4 weeks for up to 16 weeks to eligible workers who have lost their income due to COVID-19.An online questionnaire will help us direct you to the service option that best fits your situation (i.e. eligibility for Employment Insurance benefits or not).Do not apply for the CERB if you have already applied for EI.Apply for the CERBYou can also apply over the phone: 1?800?959?2019 or 1?800?959?2041
  • Deferral of Sales Tax Remittance and Customs Duty Payments until JuneWe are allowing businesses, including self-employed individuals, to defer until June 30, 2020 payments of the GST/HST, as well as customs duty owing on their imports.Any GST/HST payment that becomes owing from March 27 until the end of May can be deferred until the end of June. For GST and customs duty payments for imported goods, deferral will include amounts owing for March, April and May.These amounts were normally due to be submitted to the Canada Revenue Agency and the Canada Border Services Agency as early as the end of March 2020.Learn more about the deferral of GST/HST tax remittances
  • More time to pay income taxesWe are allowing all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act.No interest or penalties will accumulate on these amounts during this period. Consult all the tax and payment dates

Indigenous businesses

  • Funding for small and medium-sized Indigenous businesses, and Aboriginal Financial InstitutionsWe announced up to $306.8 million in funding to help small and medium-sized Indigenous businesses, and to support Aboriginal Financial Institutions that offer financing to these businesses.The funding will allow for short-term, interest-free loans and non-repayable contributions through Aboriginal Financial Institutions, which offer financing and business support services to First Nations, Inuit, and Métis businesses.These measures will help 6,000 Indigenous-owned businesses get through these difficult times.Financial support for Indigenous businesses will be provided through Aboriginal Financial Institutions, and administered by the National Aboriginal Capital Corporations Association and the Métis capital corporations in partnership with Indigenous Services Canada.

In addition to the measure above, Indigenous peoples can also access benefits listed under Support for individuals and Support for businesses.

Supporting financial stability

  • Relief for federally regulated pension plan sponsorsWe are providing immediate, temporary relief to sponsors of federally regulated, defined benefit pension plans in the form of a moratorium, through the remainder of 2020, on solvency payment requirements for defined benefit plans.This relief will help ensure that employers have the financial resources they need to maintain their operations and their pension plans, and to protect the retirement security of their workers and retirees.
  • Launching an Insured Mortgage Purchase ProgramWe launched an Insured Mortgage Purchase Program, in which we will purchase up to $150 billion of insured mortgage pools through the Canada Mortgage and Housing Corporation.This action will provide long-term stable funding to banks and mortgage lenders, help facilitate continued lending to Canadian consumers and businesses, and add liquidity to Canada’s mortgage market.Learn more about the Insured Mortgage Purchase Program
  • Bank of Canada’s actionsThe Bank of Canada is acting in several ways to support the economy and financial system and stands ready to take any and all actions that it can to protect the well-being of Canadians during this difficult time. The Bank has responded by lowering interest rates, intervening to support key financial markets and providing liquidity support for financial institutions.Learn more about Bank of Canada’s actions
  • Office of the Superintendent of Financial Institutions actionsThe Office of the Superintendent of Financial Institutions announced it is lowering the Domestic Stability Buffer by 1.25% of risk-weighted assets. This action will allow Canada’s large banks to inject $300 billion of additional lending in to the economy.

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Support for sectors

Agriculture, agri-food, aquaculture, fisheries

  • Keeping workers in the food supply chain safeWe are providing $50 million to help farmers, fish harvesters, and all food production and processing employers, put in place the measures necessary to follow the mandatory 14-day isolation period required of all workers arriving from abroad.We will provide support of $1,500 for each temporary foreign worker, to employers or those working with them to ensure requirements are fully met. The funding is conditional on employers not being found in violation of the mandatory isolation.We granted an exemption for temporary foreign workers from travel restrictions to Canada, along with other foreigners with student and work visas, provided they adhere to a strict 14-day isolation protocol upon arrival.
  • Increasing credit availabilityWe have enabled Farm Credit Canada to provide an additional $5 billion in lending to producers, agribusinesses, and food processors. This will offer increased flexibility to farmers who face cashflow issues and to processors who are impacted by lost sales, helping them remain financially sound during this difficult time.Learn more about increasing credit available for agriculture, fisheries and aquacultureAssisting the fish and seafood processing sectorWe are providing $62.5 million of new assistance to the fish and seafood processing sector through the Canadian Seafood Stabilization Fund.This will help businesses:
    • access short-term financing to pay for maintenance and inventory costs;
    • add storage capacity for unsold product;
    • comply with new health and safety measures for workers;
    • support new manufacturing/automated technologies to improve productivity and quality of finished seafood products; and,
    • adapt products to respond to changing requirements and new market demands.
    More details will be available soon.Helping food producers access more PPE and adapt to health protocolsWe are creating a $77.5 million Emergency Processing Fund to help food producers access more personal protective equipment (PPE), adapt to health protocols, automate or modernize their facilities, processes, and operations, and respond to emerging pressures from COVID-19 so they can better supply Canadians with food during this period.Helping producers faced with additional costs incurred by COVID-19We are launching a national AgriRecovery initiative of up to $125 million in funding to help producers faced with additional costs incurred by COVID-19 such as set-asides for cattle and hog management programs to manage livestock backed-up on farms, due to the temporary closure of food processing plants.This new federal funding will help beef and pork producers and processors adapt to a changing market, and help farmers and ranchers keep their animals longer before marketing.Increasing the Canadian Dairy Commission borrowing limitWe announced the intention to increase the Canadian Dairy Commission’s borrowing limit by $200 million to support costs associated with the temporary storage of cheese and butter to avoid food waste.Helping redistribute existing and unsold inventoriesWe are launching the Surplus Food Purchase Program with an initial $50 million fund designed to help redistribute existing and unsold inventories, which could include products such as potatoes and poultry, to local food organizations who are serving vulnerable Canadians.Increasing interim payments from 50% to 75% through AgriStabilityWe are working with provinces and territories to increase interim payments from 50 per cent to 75 per cent through AgriStability, a federal, provincial and territorial program that supports producers who face significant revenue declines. This change has already been enacted in some provinces.Learn more about the AgriStability programExpanding the AgriInsurance to include labour shortageWe are working with provinces and territories to increase interim payments from 50 per cent to 75 per cent through AgriStability, a federal, provincial and territorial program that supports producers who face significant revenue declines. This change has already been enacted in some provinces.Learn more about the AgriInsurance program

Cultural, heritage and sports

  • Addressing the financial needs of cultural, heritage and sport organizationsWe are establishing a $500 milllion COVID-19 Emergency Support Fund for cultural, heritage and sport organizations that will help address the financial needs of affected organizations so they can continue to support artists and athletes.Learn more about the Emergency Support Fund
  • Waiving payments for Part I licence feesThe Canadian Radio-television and Telecommunications Commission (CRTC) will not issue letters requesting payment for Part I licence fees by broadcasters for the 2020–21 fiscal year.We will provide the CRTC with an equivalent amount to the waived Part I licence fees to support CRTC’s operations.

Air transportation

  • Continuing the supply of essential goods and services to remote and fly-in communitiesWe are providing up to $17.3 million to the governments of Yukon, Northwest Territories, and Nunavut to support critical air services to Northern and remote communities, in partnership with investments by the territorial governments, to ensure the continued supply of food, medical supplies, and other essential goods and services to remote and fly-in communities.
  • Waiving ground lease rentsWe are waiving ground lease rents from March 2020 through to December 2020 for the 21 airport authorities that pay rent to the federal government. We are also providing comparable treatment for PortsToronto, which operates Billy Bishop Toronto City Airport and pays a charge to the federal government.Learn more about the support for airports

Tourism

  • Deferring payments on commercial leases and licenses of occupationWe will work with tourism operators in national parks, historic sites, and marine conservation areas to defer payments on commercial leases and licences of occupation without interest until September 1, 2020.

Energy

  • Cleaning up orphan and inactive oil and gas wellsWe are providing up to $1.72 billion to the governments of Alberta, Saskatchewan, and British Columbia, and to the Alberta Orphan Well Association, to clean up orphan and inactive oil and gas wells. This will help maintain approximately 5,200 jobs in Alberta alone.
  • Launching the Emissions Reduction FundWe are providing up to $750 million to create a new Emissions Reduction Fund to support workers and reduce emissions in Canada’s oil and gas sector, with a focus on methane.This fund will provide primarily repayable contributions to conventional and offshore oil and gas firms to support their investments to reduce greenhouse gas emissions. Of this amount, $75 million will be allocated to the offshore sector.

Non-profit and charitable

  • Delivering essential services to those in needWe invested $350 million to support vulnerable Canadians through charities and non-profit organizations that deliver essential services to those in need.The investment will flow through national organizations that have the ability to get funds quickly to local organizations that serve vulnerable populations. It will support a variety of activities, such as:
    • Increasing volunteer-based home deliveries of groceries and medications
    • Providing transportation services, like accompanying or driving seniors or persons with disabilities to appointments
    • Scaling up help lines that provide information and support
    • Helping vulnerable Canadians access government benefits
    • Providing training, supplies, and other required supports to volunteers so they can continue to make their invaluable contributions to the COVID-19 response
    • Replacing in-person, one-on-one contact and social gatherings with virtual contact through phone calls, texts, teleconferences, or the Internet
    Learn more about the Emergency Community Support Fund

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Original source: https://www.canada.ca/en/department-finance/economic-response-plan.html

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Applying for CERB with CRA

The Canada Emergency Response Benefit (CERB) gives financial support to employed and self-employed Canadians who are directly affected by COVID-19.

If you are eligible, you can receive $2,000 for a 4-week period (the same as $500 a week).

If your situation continues past 4 weeks, you will need to apply for the CERB again. You may re-apply for up to a total of 16 weeks.

Update to CERB eligibility criteria

The CERB is now available if you earned $1,000 or less during an eligibility period. If this applies to your situation, you may be eligible to apply for a previous period, starting March 15, 2020.

Get more details under Who can apply.

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Original source: https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra.html