CERB Extended | Business Owners who did not qualify previously – expanded CEBA starts June 19th

CERB Extended 2 more months

Great news for Canadians out of work and looking for work. The CERB will be extended another 8 weeks for a total of up to 24 weeks.

As the country begins to restart the economy, the Federal government will be making changes to the program to encourage Canadians receiving the benefit to get people back on the job. From Prime Minister Justin Trudeau’s website:

“The Government of Canada introduced the CERB to immediately help workers affected by the COVID-19 pandemic, so they could continue to put food on the table and pay their bills during this challenging time. As we begin to restart the economy and get people back on the job, Canadians receiving the benefit should be actively seeking work opportunities or planning to return to work, provided they are able and it is reasonable to do so.

That is why the government will also make changes to the CERB attestation, which will encourage Canadians receiving the benefit to find employment and consult Job Bank, Canada’s national employment service that offers tools to help with job searches.”

More small businesses can apply for CEBA $40,000 no-interest loans

Applications for the expanded Canada Emergency Business Account (CEBA) will be accepted as of Friday, June 19th, 2020. Small businesses that are:

“… owner-operated small businesses that had been ineligible for the program due to their lack of payroll, sole proprietors receiving business income directly, as well as family-owned corporations remunerating in the form of dividends rather than payroll will become eligible this week.”

Apply online at the financial institution your business banks with:

There are restrictions on the funds can be used. From their website https://ceba-cuec.ca/:

“The funds from this loan shall only be used by the Borrower to pay non-deferrable operating expenses of the Borrower including, without limitation, payroll, rent, utilities, insurance, property tax and regularly scheduled debt service, and may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions and increases in management compensation.”

2020 Saskatchewan Budget Highlights

The much anticipated revised Saskatchewan Budget was delivered on June 15th, 2020 by Finance Minister Donna Harpauer. The budget now anticipates a deficit of $2.4 billion for 2020/2021.

Personal
Tax Highlights

New Residential Home Construction PST rebate

“Our government has also introduced a PST rebate for new residential home construction of up to 42% of the PST paid on a new house contract up to $350,000, excluding the land, for new homes purchased after March 31, 2020 and before April 1, 2023. The new rebate will help the province’s construction industry, homebuilders, and associated trades to create jobs. And it will help Saskatchewan families to afford a newly built home.” – Finance Minister Donna Harpauer

Indexation of Personal Income Tax system

“This budget reintroduces full indexation of the Personal Income Tax system, beginning with the 2021 tax year, protecting taxpayers from “bracket creep”—automatic increases in tax caused by inflation.” – Finance Minister Donna Harpauer

Corporate
Tax Highlights

Oil Infrastructure Investment Program

“The Oil Infrastructure Investment Program, a SaskFirst new growth tax incentive administered by the Ministry of Energy and Resources, has been introduced to support new and expanded pipelines, as well as new pipeline terminals, to flow oil to market.” – Finance Minister Donna Harpauer

Chemical Fertilizer Tax Incentive

“This budget also introduces a new Saskatchewan Chemical Fertilizer Incentive, providing a 15 percent tax credit to encourage new investment that will grow Saskatchewan’s value-added sector.” – Finance Minister Donna Harpauer

Manufacturing and Processing Exporter Tax Incentive

The M&P Exporter Tax Incentive provides non-refundable tax credits to eligible corporations that expand the number of M&P-related full time employees above the number that were employed in 2014. Eligible businesses are those that derive at least 25% of revenues from the export to the rest of Canada or internationally of their manufactured goods each year and that:

  • “manufacture or process” goods for sale as defined in the federal Income Tax Act; or

  • are principally involved in the commercial development of “new economy” products for export, including interactive digital media products and creative industry products.

Please don’t hesitate to contact us if you have questions about how the budget will affect you.

10 Essential Decisions for Business Owners

10 Essential Decisions for Business Owners

Business owners can be busy… they’re busy running a successful business, wearing lots of hats and making a ton of decisions. We’ve put together a list of 10 essential decisions for every business owner to consider.

10 essential decisions for a business owner from considering corporate structure to retirement and succession planning. 

The essential questions include:

  • Best structure for your business (ex. Sole Proprietor, Corporation, Partnership)

  • Reduce taxes

  • What to do with surplus cash

  • Build employee loyalty

  • Reduce risk

  • Deal with the unexpected

  • Retire from your business

  • Sell your business

  • Keep your business in the family

  • What to do when you’re retired

As a financial advisor, we are uniquely positioned to help business owners, talk to us about your situation and we can provide the guidance you need.