A trend we are seeing on the rise is self-employment as the gig economy takes off. But what does it mean to be a contractor versus an employee? It may seem attractive to hire a contractor over an employee because then you do not have to worry about remitting payroll deductions to CRA and you do not have the same commitment to an employee contract, which usually appeals to small businesses and startups.
Still not sure? You can ask CRA for a ruling via your CRA account or come talk to us. We would love to help!
Do you have receipts scattered on your car floor? Are you like 99% of the population and hate filing? Do you struggle at tax time to gather up all your information because you had 99 other things to do that were more pressing than filing your gas receipt in your colour-coded accordion file? If yes, you are not alone.
As Canadian businesses struggle to overcome the financial impact of Covid-19, they may experience issues with keeping their employees employed and paid. The federal government launched the Canada Emergency Wage Subsidy (CEWS) to help cover the cost of employee wages, retroactive to March 15th. This subsidy enable businesses to re-hire your workers, prevent more job losses and help you ease back into your normal business activities.
This has been the year of adjustments. A huge number of businesses have had to reinvent how they handle their day-to-day business. It is no surprise that T4’s have not been spared.
Are you the owner of an incorporated business? Did you know BMP loves corporate tax returns? Among our partners, we have a collective of 45 years of experience with corporate tax returns and one of our partners was tax auditor with CRA and the province. We are able to provide quality products for a reasonable price point (our corporate returns start at $500).
As many Canadian businesses were forced to close their doors and later modify how they do business in a World during a global pandemic, Canadians struggled to make ends meet. The Canada Emergency Response Benefit (CERB) and Canada Emergency Student Benefit (CESB) were launched in March and May respectively to relieve some of the pressure. Employers deduct taxes prior to depositing their employees’ pay into their account. However, this was not the case with CERB and CESB benefits.
CEBA was originally launched on April 9th, 2020 and was intended to help businesses pay non-deferrable expenses. The eligibility criteria was expanded in June to include businesses that did not have payroll, sole proprietors and family-owned corporations that pay their shareholders in the form of dividends instead of payroll. Loans of up to $40,000 are extended to small businesses and not-for-profits.
Today, our Premier presented an update on measures the provincial government will be rolling out to combat the financial difficulties Albertans are feeling. We wanted to put a list together for you in case you did not catch the live update.
We want you to know that we understand that amidst this global pandemic you may be experiencing higher than usual stress levels. Although we may not have the answers to health questions, we can address some of your financial concerns.
Canada's six biggest banks (Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada and Toronto-Dominion Bank) have announced offers of financial assistance, including by allowing some delay mortgage payments for as much as half a year.
Today, Tuesday, March 18, 2020, our Prime Minister announced what steps they are taking to manage our financial concerns. The following actions are not exhaustive as the government will continue to monitor how to best help Canadians.
Individuals that don't have access to Employment Insurance:
There are new measures to enable people who do not have access to EI pay (comparable to what you would receive in EI) every two weeks for 14 weeks.
Two programs that will be put into place:
1. Emergency Care Benefit - for people who are ill, placed in quarantine, have to self-iisolate have to care for a loved one who has COVID 19 but fail to qualify for EI
2. Covid 19 Emergency Support Benefit - for people who lose your job or if you are self-employed and you have to close your shop
Canadians should have access to these funds within two weeks.
More details (https://www.ctvnews.ca/health/coronavirus/how-to-apply-for-ei-sickness-benefits-and-the-new-emergency-worker-fund-1.4858089)
For Small Businesses:
To help you retain staff, the Government of Canada is rolling out a subsidy that pays up to 10% of salaries for a period of three months.
Canada Child Benefit will be increased in the coming months to counteract higher childcare costs.
In May there will be an increase in the GST credit for lower-income folks to offset the sales tax they pay. Every qualifying adult will receive up to $300 + $150 for every child.
Six-month interest-free repayment pause for student loans
Homeless People and Shelters:
A doubling of funds to Reaching Home Program
Boost funding for shelters
Distinction-Based Indigenous Community Support Fund
Additional Support to Businesses:
Export Development Canada will provide support to Canadian companies affected by the global situation
Boosts Farm Credit Canada for farmers and primary food producers