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Deferral of WCB Premiums
Nicole Barnett • April 26, 2020
The Alberta Government has announced the deferral of WCB Premiums for a year.
- Private sector employers will have immediate financial relief by deferring WCB premiums until early 2021, effectively for one year.
- Employers who have already paid their WCB premium payment for 2020 are eligible for a rebate or credit.
- For small and medium businesses, the government will cover 50 per cent of the premium when it is due.
- Large employers will also receive a break by having their 2020 WCB premium payments deferred until 2021, at which time their premiums will be due.
The application portal for the CERB $2,000/month funding is available starting today through CRA My Account. Use the following schedule to apply: April 6th - Birth months of January, February and March April 7th - Birth months of April, May and June April 8th - Birth months of July, August and September April 9th - Birth months of October, November and December Open for anyone after those dates Where to apply: https://www.canada.ca/en/services/benefits/ei/cerb-application.html Two important points: CRA has clarified that business owners who are compensated through dividends rather than wages are eligible for the CERB if their 2019 income is $5,000 or more. CERB vs EI If you have applied for EI since March 15th, your application will automatically be transferred to the CERB process, so there is no need to apply for CERB . At the end of the 4 month CERB program, you could resume receiving EI if eligible and the CERB payments will not use up any of the EI-eligible weeks. For anyone who applied to EI prior to March 15th and received benefits, you will stay in the EI program and continue receiving the EI payments. A good summary here: https://globalnews.ca/news/6770564/coronavirus-ei-beneficiaries-federal-emergency-benefit/ More answers to common questions are available here: https://www.canada.ca/en/services/benefits/ei/cerb-application/questions.html
Details are here: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html Highlights: A 10% wage subsidy is available for any wages paid between March 18th and June 20th, to a maximum of $1,375 per employee and $25,000 per employer To calculate: If you have 5 employees earning monthly salaries of $4,100 for a total monthly payroll of $20,500, the subsidy would be 10% of $20,500, or $2,050. To claim the subsidy: Reduce your payroll remittances by the amount of the calculated subsidy in the first remittance period that includes wages paid between March 18th and June 20th. So, for a regular remitter, the remittances due April 15 will be reduced by the amount of the subsidy. The subsidy does not need to be used to reduce remittances immediately. You can pay full remittances now and then request the calculated subsidy be paid out to you at the end of the year or applied to next year's remittances. To report the subsidy: CRA has not yet released info on how to report the subsidy calculation or amount. This is expected in the near future. The subsidy will be considered taxable income to your business in the year it is received. The team at Insight LLP is committed to helping our business clients access and understand the latest information on the ever-changing Covid-19 situation. Please contact us directly with any questions specific to your business needs at 403-524-4878 or via email.The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.
There were some new announcements today about funding that will be available to individuals. You may want to share this information with employees or those you have been forced to layoff. Alberta Emergency Isolation Support As a temporary bridge until federal funding is available in April, Alberta has announced a one-time emergency isolation support payment of $1,146 for Albertans who are required to self-isolate or are the sole caregiver of someone in self-isolation and no other source of compensation is available. Details on who is eligible and how to apply are here: https://www.alberta.ca/emergency-isolation-support.aspx Canada Emergency Response Benefit Previously announced programs for Emergency Care and Emergency Support Benefits have now been combined into the Canada Emergency Response Benefit (CERB), which will provide eligible individuals with $2,000/month for four months. The application portal for this benefit will open on April 6, 2020. As an employee, contractor or self-employed person, you are eligible if: Your have been laid off or terminated You are sick or quarantined, or taking care of someone who is sick or quarantined You must stay home without pay with kids who are sick or at home due to school or daycare closures You are still working but not receiving any income because of Covid-19 disruptions This program is designed to reduce the strain on the EI system and get funds into the hands of Canadians faster. Payments are expected to be received within 10 days of application, so the first payments should be out after April 16, 2020. Already receiving EI regular and sickness benefits? Do not apply for the CERB. You will continue to receive your EI benefits. Already applied for EI and application has not been processed? Do not reapply for the CERB . Your application for EI will be used for the new program. The news release is here: https://www.canada.ca/en/department-finance/news/2020/03/introduces-canada-emergency-response-benefit-to-help-workers-and-businesses.html Other funding: Other previously announced funding is expected to reach Canadians in May. A one-time GST credit for low/modest income individuals should give an extra $400 for singles and $600 for couples. If you are eligible, you will get it automatically. No need to apply. The increased Canada Child Benefit (CCB) will add $300/child on the May benefit cheque. If you already receive CCB, no application is required. Personal tax filing and payment deadline extensions: The T1 filing deadline has been extended from April 30th to June 1st. However, if you receive GST credits, Child Benefits or Guaranteed Income Supplements, you should file as soon as possible to ensure there are no interruptions in these benefits. The personal tax payment deadline has been extended from April 30th to after August 31st, with no interest or penalties. This only applies to amounts due from 2019 tax returns, so if you have any older tax debts, there is no deferral available. There is no deferral for GST payments. If you are self-employed and registered for GST, your regular filing and payment deadlines still apply. The team at Insight LLP is committed to helping our clients access and understand the latest information on the ever-changing Covid-19 situation. Please contact us directly with any questions specific to your business needs at 587-813-0529 or via email.
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