Provincial COVID-19 Support Programs
Ontario COVID-19 Small Business Relief Grant
Dear Clients and Friends,
The provincial government is announcing an Ontario COVID-19 Small Business Relief Grant for small businesses that are subject to closure under the modified Step Two of Roadmap to Reopen.
What will you receive?
Eligible businesses subject to closures as a result of the province’s move to the modified Step Two of the Roadmap to Reopen will receive a grant of $10,000.
Eligibility
To receive the grant, a small business must:
1. be required to close due to public health orders that took effect 12:01 a.m. on January 5, 2022
2. have fewer than 100 employees
Eligible businesses that previously qualified for the Ontario Small Business Support Grant will be pre-screened to verify eligibility and will not need to apply for the new program. Newly established and newly eligible small businesses will need to apply once the application portal opens in the coming weeks. Small businesses that qualify can expect to receive their payment in the coming weeks.
What are eligible small businesses?
- restaurants and bars
- facilities for indoor sports and recreational fitness activities (including fitness centres and gyms)
- performing arts and cinemas
- museums, galleries, aquariums, zoos, science centres, landmarks, historic sites, botanical gardens and similar attractions
- performing arts venues and cinemas, museums, galleries, aquariums, zoos, science centres, landmarks, historic sites, botanical gardens and similar attractions
- meeting or event spaces
- tour and guide services
- conference centres and convention centres
- driving instruction for individuals
- before- and after- school programs
When can you apply?
Applications for the Ontario COVID-19 Small Business Relief Grant will be open in the coming weeks.
Ontario Business Costs Rebate Program
The government is also introducing the new Ontario Business Costs Rebate Program to support businesses that are most impacted by public health measures in response to the Omicron variant.
What will you receive?
Eligible businesses that are required to close, or reduce capacity, will receive rebate payments for a portion of the property tax and energy costs they incur while subject to these measures. Eligible businesses required to reduce capacity to 50 per cent, such as smaller retail stores, will receive a rebate payment equivalent to 50 per cent of their costs, while businesses required to close for indoor activities, such as restaurants and gyms, will receive a rebate payment equivalent to 100 per cent of their costs.
Eligibility
A full list of eligible business types will be available through a program guide in mid-January 2022.
When can you apply?
Online applications for this program will open in the coming days. Payments to eligible businesses will be retroactive to December 19, 2021. Businesses will be required to submit property tax and energy bills as part of the application process.
Federal COVID-19 Support Programs
Effective October 23, 2021, the Canadian Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS) have ended. Beginning October 24, 2021, taxpayers may apply for support through the following programs until May 7, 2022:
1. The Canada Recovery Hiring Program (CRHP), or
2. The Tourism and Hospitality Recovery Program (THRP), or
3. The Hardest-Hit Business Recovery Program (HHBRP)
The Canada Recovery Hiring Program (CRHP)
As an employer in Canada who continues to be impacted by the COVID-19 pandemic, you may be eligible for a subsidy to cover part of your wages as you hire new employees and increase existing employees’ wages or hours.
Each claim period, eligible employers can claim either the higher of the CRHP, or the wage portion of the THRP or HHBRP
Eligibility Criteria
Eligibility criteria for CRHP is the same as CEWS.
To be eligible, your business must:
- Have a CRA Business Number or a third-party payroll provider who submits your payroll to CRA;
- Have employees on payroll who receive a T4 slip (includes new hires); and
- Have a revenue loss within a claim period.
For-profit corporations are eligible only if they are a Canadian-controlled private corporation, are eligible for the small business deduction, or are a partnership where at least 50% of interests are held by employers eligible for the CRHP.
What will you receive?
To calculate your CRHP amount, you can use the following link:
Tourism and Hospitality Recovery Program (THRP)
As a business, charity, or non-profit in Canada who has been affected by the COVID-19 pandemic, you may be eligible for a wage subsidy, a rent subsidy, or both through the THRP.
Eligibility Criteria
You may qualify if you are either:
- part of the tourism, hospitality, arts, entertainment, or recreation sectors, or
- affected by a qualifying public health restriction
For companies in the tourism, hospitality, arts, entertainment, and recreation sectors, you must meet the following 3 conditions to qualify:
1. More than 50% of your eligible revenue comes from one or more of the tourism, hospitality, arts, entertainment, or recreation activities this program supports 2. You have a 12-month average revenue drop from March 2020 to February 2021 of at least 40% 3. You have a claim period revenue drop of at least 40%
For companies affected by a qualifying public health restriction, you must meet the following 2 conditions to qualify:
1. You were affected by a qualifying public health restriction 2. You have a claim period revenue drop of at least 40% for the current claim period when compared to the corresponding reference period (you do not need to calculate a 12-month average revenue drop)
What is a qualifying public health restriction?
1. You had one or more qualifying properties that was affected by a public health restriction for at least 7 days in the claim period
2. The activities that were stopped due to a public health restriction accounted for at least approximately 25% of your total eligible revenue during the prior reference period for the claim period
A public health restriction is one that meets all of the following conditions:
1. It is based on an order or decision issued by a federal, provincial, or municipal government, or a local health authority in response to the COVID-19 pandemic
2. It results in sanctions or be an offence if you do not comply
3. It requires you or your non-arm’s-length tenant at the qualifying property to stop some or all regular activities at the qualifying property for at least 7 days in a row such that
o the activities that were stopped account for at least approximately 25% of the eligible revenues earned during the prior reference period from or in connection with the affected qualifying property
The Hardest-Hit Business Recovery Program (HHBRP)
As a business, charity, or non-profit in Canada who has faced deep losses due to the COVID-19 pandemic, you may be eligible for a wage subsidy, a rent subsidy, or both through the HHBRP.
Eligibility Criteria
Eligible organizations, regardless of their sector, may qualify for the HHBRP if they don’t qualify for the Tourism and Hospitality Recovery Program (THRP).
To qualify for the HHBRP, you must meet the following two conditions: 1. You have a 12-month average revenue drop from March 2020 to February 2021 of at least 50% 2. You have a claim period revenue drop of at least 50%
What will you receive under the THRP or the HHRBRP?
Through the THRP or HHBRP, you may be able to get a subsidy to help cover wages (formerly the Canada Emergency Wage Subsidy) and rent (formerly the Canada Emergency Rent Subsidy). To calculate your your wage or hiring subsidy and rent subsidy, you can use the following links:
· Wage or hiring subsidy à https://www.canada.ca/en/revenue-agency/services/wage-rent-subsidies/covid-wage-hiring-support-businesses/wage-calculate-amount.html
· Rent subsidy à https://www.canada.ca/en/revenue-agency/services/wage-rent-subsidies/covid-rent-property-support-businesses/rent-calculate-amount.html
Canada Emergency Business Account (CEBA)
Please be aware that as of January 12, 2022, the government announced that the repayment deadline for CEBA loans to qualify for partial loan forgiveness is being extended from December 31, 2022, to December 31, 2023, for all eligible borrowers in good standing.
Please do not hesitate to contact us at info@clearhouse.ca or 647-969-7382 if you have any questions.
Kindest Regards,
Your Clearhouse LLP Team
PUBLICATION #2
2021 Tax Slips
Dear Clients and Friends,
As the deadline for 2021 tax slips fast approaches, please see below for the information that is required in order to prepare your T4 and T4A, T5, and T3 Summary and Supplementary Forms by the filing deadlines.
T4 and T4A Summary and Supplementary Forms
Filing Deadline: February 28, 2022
The following information from the January 1, 2021 to December 31, 2021 taxation period is required:
- A payroll summary for each employee, which must specify the employee’s full name, address, and Social Insurance Number
- Payroll deduction remittances
- Auto lease and car allowance taxable benefits paid on behalf of your employees
- Life insurance premiums paid on behalf of your employees
Please note, December remittances are due in January, on the specified deadlines based on your remittance threshold.
T5 Summary and Supplementary Forms
Filing Deadline: February 28, 2022
The following information from the January 1, 2021 to December 31, 2021 taxation period is required:
- A summary of withdrawals made by shareholders
T3 Returns
Filing Deadline: March 31, 2022
What information do we need in order to prepare your T3 Return by the filing deadline?
- The legal name, address, date of birth (individuals), jurisdiction of residence, and tax identification number of the trustees, beneficiaries, settlors, executors, administrators, and liquidators of the trust.
- The trust account number – If you do not have a trust account number, you can apply for one by completing the T3 Application for Trust Account Number form (T3APP) that can be accessed through CRA’s website using the following link (https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t3app.html#shr-pg0). The application can be submitted online through your CRA My Account.
- All sources of the trust’s income, including foreign income and property.
Reporting Requirements
Effective 2021 and onwards, the reporting obligations have been extended to require trusts to not only have to file a T3 return, but also report additional information on a new schedule that will accompany the T3 return. Resident trusts and deemed resident trusts will need to disclose personal information regarding settlors, trustees, beneficiaries and persons who have the ability to exert control or override trustee decisions. Additionally, Canadian resident trusts and non-resident trusts are required to file a T3 Return regardless of whether income is earned in the trust.
Penalties for Non-Compliance
The penalty for failing to file a T3 return or beneficial ownership information will be equal to $25 per day late, with a minimum of $100 and a maximum of $2,500. However, knowingly failing to file a T3 return or beneficial ownership information will result in a significant additional penalty of 5% of the maximum value of property held by the trust in the particular year, with a minimum penalty of $2,500.
Please do not hesitate to contact us at info@clearhouse.ca or 647-969-7382 if you have any questions.
Kindest Regards,
Your Clearhouse LLP Team