martin-sanchez-Tzoe6VCvQYg-unsplash.jpg

COVID-19 Updates as of Today

Pathway would like to share the information about the government programs to help you understand what initiatives apply to you. Please see below for additional updated information. 

CRA has extended CERB benefits up to 24 weeks from 16 weeks (updated June 16, 2020)

Government provides a taxable benefit of $2,000 every 4 weeks for up to 24 weeks to eligible workers who have lost their income due to COVID-19.

 

Who is eligible

 

The Benefit is available to workers:

  • Residing in Canada, who are at least 15 years old;

  • Who have stopped working because of reasons related to COVID-19 or are eligible for Employment Insurance regular or sickness benefits or have exhausted their Employment Insurance regular benefits or Employment Insurance fishing benefits between December 29, 2019 and October 3, 2020;

  • Who had employment and/or self-employment income of at least $5,000 in 2019 or in the 12 months prior to the date of their application; and,

  • Who have not quit their job voluntarily.

 

When submitting your first claim, you cannot have earned more than $1,000 in employment and/or self-employment income for 14 or more consecutive days within the four-week benefit period of your claim.

 

When submitting subsequent claims, you cannot have earned more than $1,000 in employment and/or self-employment income for the entire four-week benefit period of your new claim.

CRA has extended filing deadlines for Corporations and trusts (updated May 25, 2020)

T2 Corporate tax return filing deadlines: If the deadline falls between Mar 18 and Sept 1, 2020, then Sept 1, 2020 is the filing deadline. 

Corporate income tax payment deadline: Sept 1, 2020 (for amounts that became owing after March 17, 2020) 

Corporate income tax installment deadline: Sept 1, 2020

T3 Trusts tax return filing deadline: If the deadline falls between Mar 18 and Sept 1, 2020, then Sept 1, 2020 is the filing deadline. 

Corporate income tax payment deadline: Sept 1, 2020 (for amounts that became owing after March 17, 2020) 

Corporate income tax installment deadline: Sept 1, 2020

Changes to the Canada Emergency Business Account (CEBA) - $40,000 loan (updated May 19, 2020)

Earlier today (Tuesday, May 19, 2020), the federal government announced important changes to the Canada Emergency Business Account (CEBA). This expanded eligibility criteria will allow a greater number of small business owners to be able to apply for CEBA interest-free loan of $40,000 (maximum). 

To qualify under the expanded eligibility criteria for the CEBA, applicants with payroll lower than $20,000 would need:

  • A business operating account at a participating financial institution;

  • A Canada Revenue Agency business number, and to have filed a 2018 or 2019 corporate tax return (T2); and

  • Eligible non-deferrable expenses between Cdn.$40,000 and Cdn.$1.5 million. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities and insurance. 

Restrictions on how to use CEBA funds

 

The funds from this loan shall only be used to pay non-deferrable operating expenses

  • without limitation, may use for Payroll, Rent, Utilities, Insurance, Property tax, Regularly scheduled debt payments, etc

  • may NOT use for other loan/debt prepayment, dividend payment, increase in management compensation, etc

Canada Emergency Commercial Rent Assistance (CECRA) - updated May 25, 2020

The application portal OPENS at 8:00 a.m. EST on May 25, 2020 through Canada Mortgage and Housing Corporation. Pathway encourages all eligible commercial property owners to participate in this program.

 

CMHC expects a large volume of applications. To manage this volume, they are asking property owners to register on the following days once the application process has opened.

Note: Once you registered, the portal will be available 24/7 for applicants to input data and upload documents.  

CMHC register days.JPG

CECRA offers unsecured, forgivable loans to eligible commercial property owners to : 

  • Reduce the rent owned by their impacted small business tenants

  • Meet operating expenses on commercial properties

Commercial property owners must offer a minimum of a 75% rent reduction for the months of April, May and June 2020.

Note: Properties with or without a mortgage are eligible under CECRA for small businesses

To help you prepare, sample versions of the application documents are now available on Canada Mortgage and Housing Corporation(CMHC) website (under WHAT YOU NEED TO APPLY). Please use the below link.

Note: Eligible small business tenants who are in sub-tenancy arrangements are also eligible, if these lease structures meet program criteria.

CMHC website.JPG

Pathway Accounting & Business Solutions will update

more information as they are available

Please stay tuned and be safe ...