Ontario Small Business Support Grant

Applications are now open for the new Ontario Small Business Support Grant. This grant is designed to help small businesses that are required to close or significantly restrict services under the Province wide Shutdown that came into effect December 26, 2020.

Up to $20,000 is available in the form of a grant to help cover the decrease in revenue because of the Shutdown. Businesses must be able to demonstrate that they had experienced a revenue decline of at least 20% when comparing monthly revenue in April 2019 and April 2020. Businesses established after April 2019 may also be eligible assuming they meet the other criteria.

To receive the grant, the business must meet all of the following eligibility requirements:

  • They were required to close or restrict services subject to the Province wide Shutdown effective 12:01 a.m. on December 26, 2020.
  • Have fewer than 100 employees at the enterprise level.
  • Have experienced a minimum 20 per cent revenue decline when comparing April 2020 to April 2019 revenues.

Businesses that are not eligible include those who were already required to close prior to the introduction of the modified Stage 2 measures (October 10, 2020) or essential businesses permitted to operate with capacity restrictions.

In order to apply you will need a CRA business number for your business, information about the revenue decline as well as the number of employees in the business.

For more information please visit the government of Ontario website: https://www.ontario.ca/page/businesses-get-help-covid-19-costs?fbclid=IwAR0h9CxnbUfE0CtEvslNYgUh5h59QXJePRqSIVyg1jc0hJOdT4LDUqMrbaA#section-0

To apply: https://www.app.grants.gov.on.ca/msrf/#/

T4 2020 Preparation with CEWS and TWS

Canada Emergency Wage Subsidy (CEWS)/Temporary Wage Subsidy(TWS)/T4 Preparation

As you are aware, there are many benefits that have been available to employers over the past several months. Some of these benefits will affect the way that T4s are prepared in 2020.

Canada Emergency Wage Subsidy (CEWS)
This benefit assisted employers who had a drop in revenue during the year and could apply to CRA to have a percentage of their wages reimbursed to them. This benefit requires a separate application form to CRA and will not affect the way that T4s are prepared.

The deadline to file the reports is nearing if employers have not yet filed the application. For Claim Periods 1-5 (based on March – July 2020 revenue), the deadline is January 31, 2021. Starting with Claim Period 6, the deadline is 180 days after the ending date for the application period. Period 6 covered the time from August 1-29, 2020, so the application deadline will be February 25, 2021.

Temporary Wage Subsidy (10%)
The temporary wage subsidy is a benefit, that from March 18 – June 19, 2020, reimburses you up to 10% of the remuneration you pay up to $1,375 per eligible employee. The maximum total for each employer is $25,000. This subsidy could be reduced from source deductions remitted to the government or it could be carried forward to use on future payments.

In order to reconcile the amount that was reduced for the TWS, CRA is requiring that all employers fill out a PD27 10% Temporary Wage Subsidy Self-identification Form for Employers. This form is required to be filled out by all employers who claimed either CEWS or TWS. If you claimed CEWS, but not TWS, the form needs to be filled out with a claim of 0%.

The PD27 form can be found on CRA’s website and can either be mailed to CRA or uploaded through My Business Account or Represent a Client.

T4 Preparation
While preparing the T4s for 2020, please note that there are four new boxes that need to be filled out for all employees, regardless of whether any COVID subsidies were applied for. Gross income should still be entered in Box 14 as usual, but in addition, the following boxes need to be reported to CRA:

  • Code 57 – Employment income – March 15 – May 9
  • Code 58 – Employment income – May 10 – July 4
  • Code 59 – Employment income – July 5 – August 29
  • Code 60 – Employment income – August 30 – September 26

The amounts reported in these boxes are based on dates paid, not when the money was earned. Therefore, if an employee earned wages from August 23-29 that were paid on September 4, the amount would be reported under Code 60.

 

We hope this information helps and feel free to contact our staff if you have any questions as always.

Application Deadlines For CEWS and CERS Quickly Approaching!

Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy (CERS) Application Deadlines

The CEWS and CERS application deadlines are quickly approaching. The deadline for all CEWS and CERS applications is the later of January 31, 2021 and 180 days after the end of the claim period.

For CEWS applications, this means that applications for claim periods 1, 2, 3, 4 and 5 will be due no later than January 31, 2021.  For CEWS claim period 6, which would cover the 4-week claim period from August 2 to August 29, 2020, the deadline to apply would be February 25, 2021 (180 days after the end of the claim period).

For CERS applications, this means that applications for claim period 1 (September 27 to October 24, 2020) is due no later than April 22, 2021 (180 days after the end of the claim period).

If you believe your business qualifies for either the CEWS and/or the CERS and have not yet applied for some or all of the earlier claim periods, please contact our office to ensure your application is filed by the application deadline.

Holiday Office Hours 2020

Our offices continue to be accessible by appointment only.  We will be closed at noon on December 24th.  We will be open on December 29th  and 30th with normal business hours, and will close again at noon on the 31st. We will be reopening on January 4, 2021.

During the period from December 24th, 2020 to January 8th, 2021 there will be no access to our offices by visitors. Items can be dropped off at any time during business hours into the drop-box provided. For the St. Thomas office only, from December 24th, 2020 to January 1, 2021, please call during business hours, (519) 633-0700, to arrange with reception for dropping items off as the building will be closed to the public.

If you require any assistance, please call our administrative staff or any firm member at any time.

Seasons Greetings!

COVID-19 Government Programs Update – Nov 2020

Many of the original Covid-19 government benefit programs have changed over the past few months to allow for easier access for many businesses.  As we continue to weather the pandemic together in our community, it is important to keep abreast of these changes and to ensure businesses can access these programs fully.

For our valued community we have put together a summary page outlining a few of the key COVID-19 Government Benefit Programs including some related forms and deadlines to help with that goal.

Should you have specific questions on any of the programs, or need assistance in completing any forms or applications, please do not hesitate to contact our office.

Government Benefit Programs November Update

Congratulations Blake!

Celebrating the success of a hard-working colleague, and watching their progress as they learn and grow, is one of the most rewarding journeys business teams take together.  Today at Graham Scott Enns LLP, the Partners and staff are ecstatic to acknowledge how far Blake Gough has come in his own journey by announcing his immediate promotion to the role of Manager!

Through years of exemplary customer-service, dedication to hard-work, and with his passion for making the firm a better place to be, Blake has shown that he is an integral member of the GSE family and community, and one of our brightest up-and-coming stars.  He has well-earned this new role.

“Blake Gough provides attentive professional service to many of our clients. He works seamlessly across a diverse range of industries including not-for-profit, municipalities, owner-managed smaller business, professional corporations, and personal tax clients.  Within our Firm, Blake is actively involved in organizing staff social events and training junior staff members.  Blake is a most welcome addition to our manager team.  Congratulations Blake!”

Jennifer Buchanan
Partner

We wish to congratulate Blake at the start of this exciting new stage of his career, and we encourage everyone to take this opportunity to celebrate Blake’s accomplishments!

Self-Identification form for the 10% Wage Subsidy

The 10% Temporary Wage Subsidy is a program introduced by the federal government to provide financial support to business during the COVID-19 pandemic. It allows employers to reduce the income tax portion of their payroll remittances by 10% of the gross wages paid to employees. The subsidy is limited to $1,375 per employee and $25,000 per employer. The program covers remuneration paid to employees from March 18, 2020 to June 19, 2020.

A new form has been released called Form PD27, 10% Temporary Wage Subsidy Self-Identification Form for Employers. Employers that have applied for this program or the Canada Emergency Wage Subsidy program are required to complete this form so that the CRA can reconcile their payroll remittances. There are two ways to complete this form:

  1. Complete the form on My Business Account online
  2. Complete the PDF and submit via
    1. My Business Account
    2. Mail or fax to any National Verification and Collections Centre
      1. The closest centre for most Ontario residents is:
        Shawinigan NVCC
        4695 Shawinigan-Sud Boulevard
        Shawinigan-Sud QC  G9P 5H9

For more information on completing the Form PD27, please visit https://www.canada.ca/en/revenue-agency/services/subsidy/temporary-wage-subsidy/tws-reporting.html.