We are writing to advise you that the Canada Revenue Agency (CRA) has now formalized the process for claiming the Temporary Wage Subsidy (TWS).  If you have reduced or intend to reduce a payroll remittance by a TWS claim it will be necessary to submit certain information to the CRA.  You can do this yourself by filing form PD27 or reporting online using “My Business Account”. Form PD27 can be downloaded from: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/pd27.html

Alternatively we can prepare and file the required information for you.  If you would like us to file on your behalf we ask that you complete and return the TWS information form.  You can upload the completed form to us here.

The temporary wage subsidy is a Covid-19 relief measure that is available to Canadian employers other than public companies or trusts.  It provides a maximum $1,375 subsidy per employee.  The subsidy is calculated based on 10% of gross wages paid from March 18 through June 19, 2020 and is accessed by reducing the income tax component of payroll remittances that would otherwise be payable.

Please note that, unlike the Canada Emergency Wage Subsidy (CEWS), qualifying for the TWS does not require a reduction of business revenue.  All eligible entities qualify.

Filing the required information will cause CRA to credit the TWS amount to the company’s payroll account to replace the portion of payroll remittances that were or will be reduced.  If no information is filed and payroll remittances are reduced the 2020 T4 return will be assessed with a balance owing, which will in turn attract penalties for under-remitting.  If it is not practical to reduce a remittance to access the subsidy it can be claimed when filing a 2020 T4 return, resulting in a refund.

Please contact us should you have any questions.

Starting April 27, 2020, eligible employers can apply for the 75% Canada Emergency Wage Subsidy (CEWS) via CRA My Business Account or through a separate online application form. We are also able to apply on your behalf, using Represent a Client access. If you wish for us to apply on your behalf, please note our standard rates would apply.
 
For more information on CEWS please visit: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html
 
To be eligible to receive the wage subsidy, you must:

• be an eligible employer
• have experienced an eligible reduction in revenue, and
• have had a CRA payroll account on March 15, 2020

Eligible Reduction in Revenues on Goods and Services

If the corporation’s March 2020 revenue has been reduced by 15% over:

• March 2019 or
• The Average of January and February 2020

Then the corporation would be eligible for the CEWS for payroll paid during the claiming period March 15 to April 11, 2020.
 
If the corporation’s April 2020 revenue has been reduced by 30% over:

• April 2019 or
• The Average of January and February 2020

Then the corporation would be eligible for the CEWS for payroll paid during the claiming period April 12 to May 9, 2020.
 
If the corporation’s May 2020 revenue has been reduced by 30% over:

• May 2019 or
• The Average of January and February 2020

Then the corporation would be eligible for the CEWS for payroll paid during the claiming period May 10 to June 6, 2020.
 
Employers would select the general year-over-year approach or this alternative approach using the average of January and February 2020 when first applying for the CEWS and would be required to use the same approach for the entire duration of the program.
 
Employers would be allowed to calculate their revenues under the accrual method or the cash method, but not a combination of both. Employers would select an accounting method when first applying for the CEWS and would be required to use that method for the entire duration of the program.
 
If you determine that you qualify for the CEWS for one claim period, you will automatically qualify for the following claim period.
 
Please let us know if you need our help in determining your revenue for the above calculations.

Amount of Subsidy 

The subsidy amount for a given employee on eligible remuneration paid for the period between March 15 and June 6, 2020 would be the greater of:

• 75% of the amount of remuneration paid, up to a maximum benefit of $847 per week; and
• the amount of remuneration paid, up to a maximum benefit of $847 per week or 75% of the employee's pre-crisis weekly remuneration, whichever is less.

Employers will also be eligible for a subsidy of up to 75% of salaries and wages paid to new arm’s-length employees.
 
We hope you and your loved ones are keeping safe and healthy during these challenging times. 

Last week the Federal government announced a number of measures to support and assist businesses, employees and families as a result of the COVID-19 pandemic. Today, the BC government announced their measures. We are sending this email to highlight the initiatives we thought would be relevant to you. Please click here to see our summary. For full details of all the Federal initiatives you can click here.

Please contact us if you have any questions.

In light of the recent guidelines and information provided by BCCDC and WHO surrounding COVID-19 and in an effort to keep our clients, colleagues and the greater community safe, GBCo would like to encourage you to send us your personal tax information in an electronic format.  We have a secure portal where documents may be uploaded and your personal tax return can be sent to you by secure email or regular mail.

If would like to send us your documents electronically – please click here.

If you have already submitted your documents to us and would like to receive your tax return via email or mail instead of pick up, please let us know at your earliest convenience.

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