help businesses keep and return workers to their payroll through the challenges
posed by the COVID-19 pandemic, the Prime Minister, Justin Trudeau, proposed
the new Canada Emergency Wage Subsidy. This would provide a 75-per-cent wage
subsidy to eligible employers for up to 12 weeks, retroactive to March 15,
wage subsidy aims to prevent further job losses, encourage employers to re-hire
workers previously laid off as a result of COVID-19, and help better position
Canadian companies and other employers to more easily resume normal operations
following the crisis. While the Government has designed the proposed wage
subsidy to provide generous and timely financial support to employers, it was
done with the expectation that employers will do their part by using the
subsidy in a manner that supports the health and well-being of their employees.
employers would include individuals, taxable corporations, and partnerships
consisting of eligible employers as well as non‑profit organizations and
bodies would not be eligible for this subsidy. Public bodies include
municipalities and local governments, Crown corporations, public universities,
colleges, schools and hospitals.
subsidy would be available to eligible employers that see a drop of at least 30
per cent of their revenue (see Eligible Periods). In applying for the subsidy,
employers would be required to attest to the decline in revenue.
employer’s revenue for this purpose would be its revenue from its business
carried on in Canada earned from arm’s-length sources. Revenue would be
calculated using the employer’s normal accounting method, and would exclude
revenues from extraordinary items and amounts on account of capital.
non-profits and charities, the government will continue to work with the sector
to ensure the definition of revenue is appropriate to their specific circumstances.
The subsidy amount for a given employee on eligible remuneration paid between March 15 and June 6, 2020 would be the greater of:
guidance with respect to how to define pre-crisis weekly remuneration for a
given employee will be provided in the coming days.
effect, employers may be eligible for a subsidy of up to 100 per cent of the
first 75 per cent of pre-crisis wages or salaries of existing employees. These
employers would be expected where possible to maintain existing employees’
pre-crisis employment earnings.
will also be eligible for a subsidy of up to 75 per cent of salaries and wages
paid to new employees.
remuneration may include salary, wages, and other remuneration. These are
amounts for which employers would generally be required to withhold or deduct
amounts to remit to the Receiver General on account of the employee’s income
tax obligation. However, it does not include severance pay, or items such as
stock option benefits or the personal use of a corporate vehicle.
special rule will apply to employees that do not deal at arm’s length with the
employer. The subsidy amount for such employees will be limited to the eligible
remuneration paid in any pay period between March 15 and June 6, 2020, up to a
maximum benefit of $847 per week or 75 per cent of the employee’s pre-crisis
There would be no overall limit on the subsidy
amount that an eligible employer may claim.
must make their best effort to top-up employees’ salaries to bring them to
would generally be determined by the change in an eligible employer’s monthly
revenues, year-over-year, for the calendar month in which the period began. The
amount of wage subsidy (provided under the COVID-19 Economic Response Plan) received by the employer in a given month
would be ignored for the purpose of measuring year-over-year changes in monthly
table below outlines each claiming period and the period in which it has a
decline in revenue of 30 per cent or more.
For eligible employers established after February 2019, eligibility would be determined by comparing monthly revenues to a reasonable benchmark.
employers would be able to apply for the Canada Emergency Wage Subsidy through
the Canada Revenue Agency’s My Business Account portal as well as a web-based
application. Employers would have to keep records demonstrating their reduction
in arm’s-length revenues and remuneration paid to employees. More details
about the application process will be made available shortly.
order to maintain the integrity of the program and to ensure that it helps
Canadians keep their jobs, the employer would be required to repay amounts paid
under the Canada Emergency Wage Subsidy if they do not meet the eligibility
requirements and pay their employees accordingly. Penalties may apply in cases
of fraudulent claims. [In addition, anti‑abuse rules will be proposed to ensure
that the subsidy is not inappropriately obtained and to ensure that employees
are paid the amounts they are owed. The government is considering proposing to
create new offences that will apply to individuals, employers or business
administrators who provide false or misleading information to obtain access to
this benefit or who misuse any funds obtained under the program. The penalties
may include fines or even imprisonment]
March 18, 2020, the Prime Minister announced a temporary 10 per cent wage
subsidy. For employers that are eligible for both the Canada Emergency Wage
Subsidy and the 10 per cent wage subsidy for a period, any benefit from the 10
per cent wage subsidy for remuneration paid in a specific period would
generally reduce the amount available to be claimed under the Canada Emergency
Wage Subsidy in that same period.
employer would not be eligible to claim the Canada Emergency Wage Subsidy for
remuneration paid to an employee in a week that falls within a 4-week period
for which the employee is eligible for the Canadian Emergency Response Benefit.
who are not eligible for the Canada Emergency Wage Subsidy would still be able
to furlough employees who will receive up to $2,000 a month.
usual treatment of tax credits and other benefits provided by the government
would apply. As a consequence, the wage subsidy received by an employer would
be considered government assistance and be included in the employer’s taxable
received under either wage subsidy would reduce the amount of remuneration
expenses eligible for other federal tax credits calculated on the same
and Tisha run a floral shop in Burnaby, British Columbia. They have four full‑time
employees, each earning $800 per week, and 6 part-time employees, each earning
$400 per week, for a total weekly payroll of $5,600. Bruno and Tisha have
closed their shop and are only fulfilling online orders during this challenging
period. They are keeping all of their employees on the payroll, paying them
their full regular wages, despite their revenues being down by
30 per cent. Bruno and Tisha would be eligible for a weekly wage
subsidy of $4,200 ($600 for each of their full-time employees and $300 for each
of their part-time employees).
Other Posts by David
Children's Arts and Fitness Tax Credits
Two separate tax credits now exist that are specifically focused on providing relief for families with children in various activities. And, with these credits in place the tax relief provided to parents is now better than ever.
The Candian Pension Plan (CPP)
The Canadian Pension Plan (CPP) rules are changing, and, unless you are currently collecting on your CPP and are over the age of 65, you need to pay attention.
The Value of a Unanimous Shareholders Agreement (USA)
The financial wealth of many individuals is represented by the shares of a privately-held corporation, and, as such, a shareholder agreement is an invaluable legal instrument when the corporation is being continued by other shareholders or family.
Life Insurance Creates an Estate Value
Life insurance has many applications and in this first of a 3 part series you will see how it creates an estate value when little to no value previously existed. To learn more, read on.
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In the second part of our life insurance series you will find out how to help your estate access the wealth represented by your shares in your business and your shareholder loan through the proper use of insurance.
Is it too late to reduce your 2012 taxes and optimize your investments?
Is it too late to reduce your 2012 taxes and optimize your investments? Perhaps not—if you contact KWB right away!
2013 Tax Filing Deadlines
Well, it looks like spring time may finally be here and tax time is certainly upon us as well. Find out what the important personal tax deadlines are.
2013 Federal Budget
On March 21, 2013 the federal budget was released. Read about the 4 items in the budget that we think are most likely to affect you.
CRA's Cash Receipts Window
Canada Revenue Agency (CRA) has announced that they are closing their cash receipts window effective September 30, 2013. Find out how this might affect you.
On November 12, 2013 speaking in Edmonton, Canada’s Minister of Finance, Jim Flaherty, provided some details around the Canadian economy and some outlooks for the future.
Canadian Job Market
Currently, Canada has had the best job creation of all the G8 economies over the past 10 years. Young people are experiencing a larger job
We launched a new website this past month and it's full of new content such as:
• Videos on numerous tax and business subjects
• Dozens of blog postings on topics that we've written over the last few years
• Content on all sorts of subjects customized to your specific needs
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CRA My Account
Did you know that Canada Revenue Agency has an online service called My Account which provides you with secure access to your personal or business income tax information?
This online service is available 21 hours a day. (Closed from 1:00 AM to 4:00 AM)
The following provides details on the information available through My Account
Child Fitness Tax Credit
The Conservative government has announced some changes to the children’s fitness tax credit which will begin taking effect for the 2014 Income Tax year:
1) For the 2014 income tax year, the fitness tax credit is increasing from $500 to $1,000. This credit is non-refundable. This means that parents whose income is too
KWB has moved
After 18 years in our offices at the Edmonton Sun building, we have embarked on a new path.
We moved on December 1st, 2014 and our new home is now at 9771–54th Avenue, T6E 5J4.
Our move went well and the place is looking great. There are a few loose ends that need to be
Merry Christmas from KWB!
All of us at KWB hope you enjoy yourself this holiday season. If you need to reach us, we are open regular business hours of 8:00-4:30 on the 22nd and 23rd and then closed from December 24th to December 28th.
The office is open again on December 29th and we are in all
CRA Direct Deposit
You may have been asked to provide your bank account information to CRA so that any refunds owed to you can be directly deposited into your account.
However, if you are concerned that CRA now has access to your account and could access your funds you can stop worrying. CRA has stated that if money
Online tools from the CRA and Service Canada
Here are some great tools on the CRA website to help in day to day activities that I personally use.
1) Payroll Deduction Online Calculator
Use the Payroll Deductions Online Calculator (PDOC) to calculate federal, provincial (except for Quebec), and territorial payroll deductions. It will confirm or allow you to calculate the deductions you include
Halloween at KWB
This past Friday, October 30th, the staff at KWB once again celebrated Halloween at the office.
A costume party and office decorating contest were the highlights and although we skipped the pumpkin carving this year there's a good chance it will be back in 2016.
Winner of the best costume with a great make up
If charitable giving is something that you are interested in and you want to see the tax benefits obtained recently by one of our clients, read on for more information.
If you are moving and are the owner of your own business you should consider deducting the expenses in your company rather than on your personal tax return.
If you do not have that option, then the tax rules provide that if you have moved to be at least 40 km closer to your place
Here are some common myths about our personal tax system:
Myth: The CRA completely agrees with the information you submitted in your return if it sends you back a Notice of Assessment that agrees to what you filed.
A Notice of Assessment is just the result of a quick assessment that will have fixed any
How long do you have to file a T1 adjustment?
If you find yourself in a situation where you have filed your personal tax return and then realize that you need to make a change, there are some steps you need to follow.
First, you need to wait until the notice of assessment on your
Gross Negligence Penalty
As Canadians get busy filing their taxes, the Canada Revenue Agency (CRA) reminds everyone to be cautious of fraudulent tax filing. The CRA will audit, reassess and can apply a gross negligence penalty equal to 50% of the additional tax payable if it can show that a taxpayer knowingly, or under circumstances amounting to gross
Statute Barred Period
In general, CRA can reassess tax returns for individuals, trusts and Canadian Controlled Private Corporations (CCPC’s) within 3 years from the original Notice of Assessment date. After that, the returns enter a statute barred period.
The typical statute barred period starts 3 years after the Notice of Assessment is issued
A Notice of Assessment is the
Protecting Treasured Family Assets with Life Insurance
Do you want to protect the value of your estate for your heirs and preserve those cherished family properties and other assets? If so, read on for more info.
How to Avoid a CRA Audit
If you want to figure out how to avoid a CRA audit there are a number of things you should know.
Probably one of your worst nightmares is the dreaded audit letter from the Canada Revenue Agency (CRA) informing you that you're going to be audited and CRA will send out approximately 30,000 such
The Glass Cliff
KWB has sponsored The Glass Cliff conversation at the Winspear on September 27th from 7:00-8:30 with a reception to follow.
The panel includes Kirstine Stewart, the Rt. Hon. Kim Campbell, Eveline Charles and Dr. Shawna Pandya.
The Glass Cliff event - 27-9-17
If you are interested in attending we have a few remaining tickets and would
Free Quickbooks Online Seminars
KWB is hosting free quickbooks online seminars for our clients to learn more about the benefits of QBO and the apps that it supports.
Upcoming seminars are:
Wednesday October 4th at 11:30 (lunch provided)
Thursday October 19th at 8:30 (coffee and pastries provided)
Friday November 3rd at 11:30 (lunch provided)
Tuesday November 21st at 8:30
Triplog is a great tool if you are tired of tracking your mileage every time you get in the car. Especially if you aren’t claiming mileage as an expense because you forgot to check the odometer or write down your trips in a log book.
This app easily integrates with Quickbooks Online
Triplog is an
When to Apply for CPP Benefits
The amount of CPP benefits that you are eligible to receive depends on how long you earned employment income, and how much you earned in those years.
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Proposals from the Department of Finance on July 18, 2017 included changes to the taxation of split income.
The most common form of split income is income from a dividend from a related entity that is not excluded from being categorized as such.
Prior to 2018, shareholders of privately held companies over the age of
2018 Tax Rates & Limits
Each year various tax rates, contribution limits, benefit amounts and deduction rates change. The following is a quick reference guide for 2018.
Personal income tax rates and brackets:
Taxable income Rate
$0 to $46,605 15%
$46,606 to $93,208 20.5%
$93,209 to $144,489 26%
$144,490 to $205
Borrowing Best Practices
You may not always understand what your banker is seeing or what they are asking for, but the good news is that both your banker and you want to see the business succeed. Here is more info on the 9 simple things that will help you become a more successful borrower.
Having good bookkeeping will enable you to make good decisions based on accurate financial information provided to you on a timely basis.
KWB Chartered Accountants offers bookkeeping and similar services. With timely and accurate information we can help you address your issues and make better decisions as a result.
These are definitely tough times, and
Controller and CFO Services
Do you think you may need Controller or CFO services? Are you looking for information to help you make good decisions? Are you unsure of what's happening financially in your business?
You need timely, accurate and complete financial information and the people who can figure out what it all means in order to survive
Tax Filing Deadline
What is your tax filing deadline? How much time do you have to file and what are the costs of not filing or of filing late?
Personal Tax Filing Deadline
Personal taxes are due on April 30 unless that date falls on a Saturday, Sunday or a holiday in which case the return is due on
2017 Tax Filing Deadline and KWB office hours
We would like to remind you that for the majority of Canadians, your personal income tax returns should be filed by April 30.
It is our desire and intention to complete everyone’s returns by the April 30th deadline.
To help with this we are open extended hours until 6:00 PM during the week starting April
GST Quick Method
The GST Quick Method is available to smaller businesses and is easier, quicker and saves money as compared to the normal method of GST filing.
And since all GST registrants must file GST on either an annual, quarterly or monthly basis it can save a lot of time as well as money.
is easier, quicker and
CRA Tax Myths
Will CRA email me for information? Can I refuse to pay income taxes if I want to? Can I avoid paying GST? Do I have to pay taxes on lottery winnings? These myths are answered.
Applying for a Business Number
A Business Number is a nine-digit identifier provided by the Canada Revenue Agency (CRA) to each Canadian business.
This number is given to register tax accounts and to make communication with CRA easier. Each legal entity (sole proprietor, partnership, corporation or trust) requires one business number and each business number can be registered for
Resident or Non-resident in Canada
Under the Canadian income tax system, an individual's liability for income tax is based on his or her status as a resident or a non-resident of Canada.
An individual who is resident in Canada during a tax year is subject to Canadian income tax on his or her worldwide income from all sources. Generally, a
Impact of late filing your corporate tax return
If you are late filing your corporate tax return by more than three years, any overpayment is considered statute barred under the Canadian Income Tax Act (Section 164(1)).
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Are RRSP’s the right investment choice?
RRSPs are one of the few last minute and flexible deductions available to people with employment income from a T4.
However, if you are an owner of the business and have some control over your salary, you should consider some of the other alternatives first. Even if you can’t control your own salary you should
Structuring the legal ownership of your home
What's the best strategy for structuring the legal ownership of your home?
The answer is...it depends.
Are you asking for tax planning purposes or for estate planning purposes?
Often you may be advised that it's important for you to have the title of your home shared with somebody else so that if something were
We are often asked, “Should I own my vehicle in my company or personally?” The following facts can help us determine the answer to the question of vehicle ownership:
1) How many kms will you drive it for business purposes?
2) How many kms will you
Deductible medical costs if you qualify for a disability tax credit
A taxpayer can claim deductible medical costs paid for themselves as well as for their spouse, common-law partner and dependents.
A dependent can include;
the taxpayer or their spouse/common law partner's child or grandchild or
the taxpayer of their spouse/common law partner's parent, grandparent, sibling, uncle, aunt, niece or nephew whom lived in Canada at
Medical Expenses including Attendant Care
A taxpayer can claim medical expenses paid for themselves as well as for their spouse, common-law partner and dependents. A dependent can include;
the taxpayer or their spouse/common law partner's child or grandchild or
the taxpayer of their spouse/common law partner's parent, grandparent, sibling, uncle, aunt, niece or nephew whom lived in Canada
Spousal Loan - Tax Savings Opportunity
If you are in a much higher income tax bracket then your spouse and have investments outside of an RRSP or TFSA then a spousal loan could reduce your taxes.
Money that is earned directly by you through employment or investing is considered yours and can’t just be given to your spouse to invest.
Year End Tax Tips
Review our year end tax tips to discover a number of perfectly valid actions you may still be able to take before the end of the year to cut your taxes and to optimize your wealth management planning.
As tax planning specialists, we can help you decide exactly what to do, when to do it
What is the Work-Sharing Program?
Work-Sharing (WS) is a program that helps employers and employees avoid
layoffs when there is a temporary decrease in business activity beyond the
control of the employer. The program provides EI benefits to eligible employees
who agree to reduce their normal working hours and share the available work
while their employer recovers. Work-Sharing is
KWB's Wage Subsidy Assessment and Application
A rapid response plan for your business
Applications for CEWS (Canada Emergency Wage Subsidy) will start being received by the government as of Monday, 27 April 2020.
While businesses may qualify for benefits under CEWS, understanding the program, determining eligibility, and submitting the proper application can create a high level of stress and uncertainty
8 Tax Saving Tips
Here are 8 great tax saving tips:
Tax Savings Tip #1: Keep complete records
Be diligent about your record keeping to avoid lost receipts that can mean missing out on tax deductions. Keeping electronic copies of scanned receipts can help you stay organized on the go. KWB recommends using the Receipt Bank
Supply Chain Disruption
Supply chain disruption has already occurred due to COVID-19 and it’s likely to get worse before it gets better.
Measures that exist to avoid a reintroduction of the virus and new outbreaks will impact production and supply chains.
For companies that operate or have business relationships in impacted countries, steps should
Save Money with a Health Services Plan
Save Money with a Health Plan
How can you save $100’s and maybe $1,000’s in taxes in one simple step? Are you an employee of your own company and do you have significant medical expenses each year of $2,000 or more not covered by a health plan? Then creating a “Private Health Services Plan” (PHSP) as soon as possible could save you big dollars.
Canada Recovery Sickness Benefit (CRSB) Explained
“The Canada Recovery Sickness Benefit (CRSB) gives income support to employed and self-employed individuals who are unable to work because they are sick or need to self-isolate due to COVID-19, or have an underlying health condition that puts them at greater risk of getting COVID-19. The CRSB is administered by the Canada Revenue Agency
Tracking Your Mileage
If your business involves any driving, you should be tracking your mileage by using a mileage tracker like Triplog. If you’re thinking that you’re already drowning in paperwork and don’t have time to track your miles, consider this: If you’re not tracking your mileage, you’re leaving your money on the road, cash
Alberta Fire Code Occupant Load
On Site Fire Protection recently contacted us to inform us of the new occupant load restrictions due to the COVID pandemic. We believe that many of you will benefit from the information.
So what does “Occupant Load” mean? Occupant Load is the maximum number of persons that may occupy a building or
Canada Emergency Business Account (CEBA) Loan – Additional $20,000 for Small Businesses
Starting on Friday, December 4, 2020, eligible businesses facing financial hardship as a result of the COVID-19 pandemic are able to access a second CEBA loan of up to $20,000 – on top of the initial $40,000 that was available to small businesses.
Half of this additional financing, up to $10,000
December 2020 - Updates to the Small and Medium Enterprise Relaunch Grant
If you applied for the Canada Emergency Wage Subsidy (CEWS) in April or May, you could receive additional funding from the Small and Medium Enterprise Relaunch Grant.
At KWB, our goal is to assist you in receiving as much relevant information as possible during these uncertain times and obtaining the maximum funding for your
EDC Business Credit Availability Program (BCAP) Guarantee for Canadian Businesses
One of our goals this year is to show you how having control over your business cash flow will help you to reach your cash flow goals sooner.
Cash flow should always be a priority for your business, but what if your business has been severely impacted by COVID-19? The good news is that
Canada Summer Jobs (CSJ) Program
The Canada Summer Jobs Program can cover up to 75% of your wages.
If you are planning to hire between April 26th and February 26, 2022 and want to take advantage of the Canada Summer Jobs benefit, you have until Friday, January 29th to submit your application.
Create a better future for Canadian youth
Here’s some of the changes to T4 reporting for 2020 required by the Canada Revenue Agency (CRA).
“Other Information” Codes
Four new codes have been introduced to the “Other Information” portion of your T4 slip. In addition to reporting employment income, all employers that paid employment income to employees on dates between March 15
Certain COVID-19 Benefits are Being Extended
Due to the continued effect of COVID-19 on jobs and businesses, the following benefits are being extended:
Canada Recovery Benefit (CRB) – extended by 12 weeks, from 26 weeks to up to 38 weeksCanada Recovery Caregiving Benefit (CRCB) – extended by 12 weeks, from 26 weeks to up to 38 weeksCanada Recovery Sickness Benefit
Changes to Employer-Provided Benefits and Allowances
Canada Revenue Agency (CRA) has made changes to taxable benefits for employment conditions such as working from home, commuting, meal costs, etc. These changes are valid for the period between March 15 2020 and December 31 2020.
If you’re an employer, take note of these important changes:
If you pay for