To Our Clients

JP Accounting & Tax Services Inc. has been closely monitoring the Coronavirus (COVID-19) outbreak and continues to observe Health Canada’s recommendations.  The Ontario Government has extended the state of emergency by an additional two weeks. As such, the physical office will continue to be closed and staff will be working remotely.

Current Procedures:

If you have already provided us with your documentation and have an upcoming appointment: We are working remotely with the goal of honouring our commitments, however there may be interruptions in our scheduling. We will be in touch with each client, if their current file completion date has changed.

If you would like to drop off documentation or wish to schedule an upcoming file completion date: There is a secure drop box located inside our front doors (on the ground floor). It is available from Monday-Friday, from 9am – 4pm & it is checked daily. Please leave your email address on the outside of the package and we will send you confirmation of receipt, with an appointment date scheduled shortly there after.

Assistance The Government Is Providing:

New Tax Filing Deadlines

The federal filing deadline for income tax returns has been extended to June 1, 2020. In addition, if your return reveals that you have a balance owing, it does not have to be paid until September 1, 2020. As long as you file before June 1st, you won’t be subject to a late-filing penalty, nor will you start to accrue interest on the balance due until after the end of August.

In addition, if you are required to make instalment payments, you can delay paying any amounts that come due after March 18, 2020 until September 1, 2020.

Measures for Individuals (Canadian Emergency Response Benefit)

If you have stopped working because of COVID-19, the Canada Emergency Response Benefit (CERB) may provide you with temporary income support. The CERB provides $500 a week for up to 16 weeks.

This benefit is available to workers:

  • Residing in Canada, and who are at least 15 years old;
  • Who have stopped working because of COVID-19 and have not voluntarily quit their job or are eligible for EI regular or sickness benefits;
  • Who had income of at least $5,000 in 2019 or in the 12 months prior to the date of their application; and
  • Who are or expect to be without employment or self-employment income for at least 14 consecutive days in the initial four-week period. For subsequent benefit periods, they expect to have no employment or self-employment income.

Top-ups for CCB and GST/HST Credit Recipients

As a one-time bonus, the government will increase the maximum annual Canada Child Benefit (CCB) payment amounts for the 2019-20 benefit year by $300 per child. This top-up amount will be reflected in your last payment.
Also, if you are receiving the GST/HST Credit, you will also get an extra payment averaging $400 if you are single or $600 if you are a couple. This top-up amount would have been reflected in your last payment.

Support for families

The Ministry of Education is providing financial support to parents to assist with the costs of educational resources during school and child care closures as a result of Ontario’s declared emergency to stop the spread of COVID-19.

Parents are eligible for a one-time per child payment of:

  • $200 for children aged 0-12.
  • $250 for children with special needs aged 0-21.

Parents/guardians must submit one application per child. Only one parent / guardian may apply for each child.
Click on the link to begin applying: https://www.iaccess.gov.on.ca/FamilyAppWeb/public/index.xhtml

Measures for Businesses (Canada Emergency Wage Subsidy)

To support businesses that are facing revenue losses, and to help prevent lay offs, the government announced an emergency wage subsidy for eligible businesses – small and large – who have experienced a 15% – 30% drop in revenue due to COVID-19. (15% in the month of March, 30% in subsequent months) The subsidy will be:

  • Equal to 75% of remuneration paid during the eligible period, and will be capped at $58,700 for a maximum weekly salary of $847 per week.
  • Businesses will be able to benefit immediately from this support by reducing the amount of income tax they withhold on their employees’ remuneration. The wages the subsidy covers will be backdated to March 15.

For complete details on the CEWS, please click on the link: https://www.canada.ca/en/department-finance/economic-response-plan/wage-subsidy.html

Reduction of RRIF Minimum Withdrawals

The minimum amount that seniors must withdraw from Registered Retirement Income Funds (RRIFs) in 2020 will be reduced by 25%. This provides flexibility to seniors whose RRIFs have dropped in value, so that they will not have to liquidate their plans in order to meet minimum withdrawal requirements. Similar rules will apply to individuals receiving variable benefit payments under a defined contribution Registered Pension Plan.

Additional Measures

The government has put other measures into place, including:

  • A six-month interest-free moratorium on the repayment of Canada Student Loans for all individuals currently in the process of repayment. The same also applies for Quebec’s provincial student financial assistance program.
  • Temporarily waiving the one-week waiting period for collecting EI sickness benefits for claimants who are in imposed quarantine.
  • Allowing homeowners with CMHC-insured loans who are facing financial difficulties to defer mortgage payments.

Questions?

We will do our best to communicate on a continual basis in response to changing scenarios in order to keep our clients informed. We thank you for your trust and understanding.

Stay safe and healthy everyone,
Your JP Accounting & Tax Services Inc. Team