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
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We launched a new website this past month and it's full of new content such as:
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The following provides details on the information available through My Account
Child Fitness Tax Credit
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KWB has moved
After 18 years in our offices at the Edmonton Sun building, we have embarked on a new path.
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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.
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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.
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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.
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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.
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Here are some common myths about our personal tax system:
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Statute Barred Period
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The typical statute barred period starts 3 years after the Notice of Assessment is issued
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Protecting Treasured Family Assets with Life Insurance
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The Glass Cliff
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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.
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Personal income tax rates and brackets:
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$46,606 to $93,208 20.5%
$93,209 to $144,489 26%
$144,490 to $205
Borrowing Best Practices
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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?
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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
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It is our desire and intention to complete everyone’s returns by the April 30th deadline.
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GST Quick Method
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Resident or Non-resident in Canada
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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.
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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
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1) How many kms will you drive it for business purposes?
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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:
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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.