Apr 20, 2020

COVID 19 Urgent Updates: Tax Updates, Business Grants, Child Tax Benefits, Tax Extensions & More

 

 

Transcripts:

Ashley Ryan: Hi, everyone. It’s Ashley. Ryan and David DeMarco from invalid bookkeeping and accounting our head office is in Ottawa, Canada, the capital, but we do serve clients all over Canada.

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Ashley Ryan: Bookkeeping and Tax clients. So if you need some support in that area. You know who to get in touch with and we have been rated the number one cloud accounting firm in North America because we’re so savvy and ahead of the curve.

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Ashley Ryan: So yeah, we wanted to bring you some code 19 updates what’s going on. Things are changing almost daily

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Ashley Ryan: So we want to update you this is relevant. This is today. Our, our fearless leader and CEO David is going to

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Ashley Ryan: Kind of share what’s going on. Hi, David.

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David DiNardo: Thanks for that introduction. They’re actually

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Ashley Ryan: Going to share my screen right now.

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Ashley Ryan: So that everybody during, during this time you gonna have to be a little fearless because

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David DiNardo: There’s so many different things going on, for sure.

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Exactly.

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David DiNardo: So this is a little presentation that I’ve done.

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David DiNardo: To talk about the updates of and as actually mentioned all the, all the different changes. That’s our that’s happening.

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David DiNardo: From the government perspective and from the business perspective. So just a little bit about our team we’re over 40 employees were fortunate enough to all work remotely. We haven’t been affected by coven

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David DiNardo: And we’re able to now give the content needed to our clients and to our network.

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David DiNardo: Very proud of that. So a little bit about the agenda today is we’re going to go through individuals.

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David DiNardo: Individuals and what’s happening with the coven 19 with the government individuals and family people facing loss of income and student recent graduates. So those are the three main topics. I’ll talk about

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David DiNardo: And for businesses, we’re going to be talking about avoiding layoffs and rehiring employees, a little bit about the deferral payments access to some credit and support for self employed and individuals.

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Ashley Ryan: David, what does different payments mean

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David DiNardo: So we’ll get into that deferred payments. Yeah, we’ll, we’ll get into that a little later on we’ll go from there.

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David DiNardo: So, I think. So let’s talk about increasing the Canadian child benefit so

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David DiNardo: If you file your

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David DiNardo: Taxes and 2019 taxes we are providing an extra $300 per child through the Canada child benefits ECB for 2019 and 2020

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David DiNardo: This will remain approximately 550 more for the average family. The benefit will be delivered as part of the schedule to see CB payment in May. So essentially,

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David DiNardo: If you do have a child, you will be getting approximately $550 more on average for the family.

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David DiNardo: And if you have direct deposit with CRA you’ll get that directly into your bank. So we highly recommend you guys file for 2018 and 2019 be up to date with your taxes so that you’re able to get that extra fund.

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David DiNardo: Right now.

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Ashley Ryan: So you don’t need to do anything except just be up to up on your taxes. Yeah.

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David DiNardo: Be up to date on your taxes, make sure that you have direct deposit with CRA so that you get it in your bank account, you’re not waiting for any any papers statements which would take long, a lot longer right now.

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Ashley Ryan: Perfect. Good tip.

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David DiNardo: The second point is the filing due date for 2019 income tax for individual has been deferred until June 1 2020

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David DiNardo: And any new income tax balances do or installments are also deferred to August 31 2020 so um

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David DiNardo: Previous years. Everything was due at the end of April. If you owed money or and you’re filing. So now they extended the deadline to end of June. So, June 1

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David DiNardo: And they extended the payments to August 31 so again file, you are able to take an extra couple months to file, but make sure you file to get all those credits that are needed, especially the can Canada trial benefits.

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Awesome.

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David DiNardo: And then the

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David DiNardo: Last one. The mortgage support so

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David DiNardo: The government’s working with the banks to defer six months of payments for your mortgage. So what that means is, essentially, if you’re unable to pay your mortgage, the next six months.

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David DiNardo: They’ll just add that six month period on top of your mortgage so that it extends another six months.

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David DiNardo: After the term. So again, it’s another way to maintain cash flow, make sure that you have cash flow right now because it’s very uncertain and that six months is applied at the end of the term. So, you

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Ashley Ryan: Let them know, or how does that work.

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David DiNardo: Yeah, so you just call your, your major bank. I believe it’s an application fill out the application, let them know that you want to defer it and then you can defer to the end of the term.

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Ashley Ryan: Awesome, that’s great to know. I didn’t know that. So,

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David DiNardo: The second thing is people facing loss of income. So this is also known as the Canadian emergency resource response benefit the Serb

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David DiNardo: This is when you receive $2,000 per month, and I believe it goes right now to the end of September. That’s what the application processes application is very simple. All you have to do is go to your CRA personal account.

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David DiNardo: And there’s literally three or four questions that you need to apply, you know, at the bottom of the screen it says apply for the Serb you click that answer three questions.

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David DiNardo: Have direct deposit it would come in your business. He would come in your personal account within three business days. This one has changed. So originally they were just

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David DiNardo: The criteria was only $5,000 of income and

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David DiNardo: Now it’s changed to end in

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David DiNardo: You’d have absolutely no income. So zero income in order to apply now they’re doing it so that if you’re a part time worker or if there’s any wage loss, you’re able to apply and that rule came out yesterday so that it’s opening of the spectrum for a lot more people to be able

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Ashley Ryan: What does that mean, though, like how much money can you make a month in order to

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David DiNardo: Do it $2,000 every four weeks.

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Ashley Ryan: Okay.

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David DiNardo: We’re up to 16 weeks to eligible workers.

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Ashley Ryan: Got it. Okay, and got it. Okay, great. Perfect.

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David DiNardo: So let’s talk about students and recent graduates. Yeah.

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David DiNardo: So they’re suspending

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David DiNardo: The loans for graduates.

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David DiNardo: To

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Ashley Ryan: All of you people for medical school. Pay attention.

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David DiNardo: Yeah, so there’s suspending repayment and interest on canvas Stewart student loans and Canada apprentice loans and there are some changes to the Canada summer jobs that are being rolled out

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Ashley Ryan: Okay, do you know I guess those are you, they probably have to talk to someone to get more in space. Yeah.

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David DiNardo: There’s more applications and we can provide the link to the to get the applications.

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Right.

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David DiNardo: Okay, so now let’s talk about the Canada emergency wage subsidies. So there’s a few things going on. Number one is for your payroll remains you’re able to claim 10% off on

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David DiNardo: Issue and your payroll admin. So every fifth of each month. If you have payroll. Let’s say your payroll is $10,000 that’s what you owe the the yo to the government. You then are able to be eligible for the 10% so you so the government’s essentially claiming that you are less $1,000

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Ashley Ryan: Sounds good. Okay, that’s great.

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David DiNardo: So when we talk about deferral payments, like we mentioned

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David DiNardo: So again, it’s more time to pay your income tax. So any HST payroll taxes corporate taxes. It’s different to August 31 2020

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David DiNardo: So again, the government is helping with the cash flow issues that are happening with business owners.

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David DiNardo: And you don’t have to make payment till august 31. However, you still have to file. So you still have to file your HST which and you still have to fire your payroll to return still have to file your corporate taxes. You just don’t have to make any payments till august 31 interest free

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Ashley Ryan: Do you have to tell them this or you just can

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David DiNardo: You just have to file and they’re just there. You just don’t have to send the payment until later on.

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Ashley Ryan: Got it. Okay, cool.

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David DiNardo: accessing credit. So, um, there’s a whole bunch of credit out there now as a business owner, I don’t recommend just taking on more debt in order to get out of this situation. Some people have to, but there’s BBC is

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David DiNardo: One of our major crown cope corporations for entrepreneurs.

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David DiNardo: You can reach out to them and what they’re doing is they’re going through the application process and they’re doing a three year term loan on

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David DiNardo: A lot of business owners. So there’s access to credit and cash and everything out there. But again, if you can use your own cash or you can be cash flow.

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David DiNardo: Efficient by not essentially paying the government until end of August. That’s the best way to go, but there is the VDC loans out there as well.

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Alright.

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David DiNardo: So, um, the Serb is also offered to business owners that receive dividends. So essentially if you’re just not on payroll, you still qualify. If you are a dividend owner, which they opened up the criteria for that which is which is amazing for business owners. Awesome.

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Well,

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David DiNardo: And I think the only one thing I want to add to it is there’s a $40,000 loan interest free loan for two years.

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David DiNardo: The government’s issuing you can go to any of your major banks, there’s an application process, you get the loan within five business days and its interest free if you pay 75% by December 31 you get $10,000 back

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Ashley Ryan: David, you were talking about money. The speed of it coming in. Can you touch on that for a sec.

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David DiNardo: Yeah, that’s a good question. As a business owner, none of my clients and whoever has done the application process has received any money from the government. Right.

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David DiNardo: These are taking you know Kobe 19 started let’s say march 15 it’s, you know, middle of April and they’re still doing the application process with everything.

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David DiNardo: So we have to be as business owners smart with their money. Cash Flow efficient to make sure that we can withstand, however, however long this takes before we start receiving money from the government.

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David DiNardo: On it. And one other application process that’s happening that got approved in the Senate on Saturday was the 75% wage subsidy what that saying is if your revenue decreased in March.

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David DiNardo: Compared to march 2020 by 15% you’re eligible for 75% subsidy from the government.

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David DiNardo: Or for wages. Sorry for salary. So if your salaries are $10,000 the government will actually give you 70 $500 back

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David DiNardo: If you qualify and the two criteria for qualification, there is comparing march 2020 to march 2019 15% lower you qualify and or if January in February that total revenue on average is 15% less than March, then you can qualify

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David DiNardo: More interesting so the criteria is marches 15% lower income April and May is 30%

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Ashley Ryan: Awesome. So if you’re listening to this, you’re like, Oh my gosh, I need help.

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Ashley Ryan: Here’s how we can help. There’s a couple ways if you visit our website and volta.ca you can get the coven 19 updates.

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Ashley Ryan: We’re going to send you regular updates that you can understand. I’m sure this was super informative. That’s one way.

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Ashley Ryan: Another is we do personal tax and business tax filing and bookkeeping. So we do everything online. We can file your taxes from the comfort of your home. Super easy, super secure

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Ashley Ryan: There’s our lovely team having a good time. These are the people who are filing your taxes. So if you go over to end volta.ca you can again. Sign up for some updates or we can we can help you out directly

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Ashley Ryan: Anything you want to add, David.

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David DiNardo: No, I think just be cash flow positive be optimistic for sure. And then just keep on running your business.

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