The Federal Government of Canada has now ended the Canada Emergency Response Benefit (CERB). The last period for CERB ended on September 26. However, if you were eligible, you may still apply for CERB retroactively. Going forward the government has replaced CERB with three different programs, which are described below. They are each designed to cover a different challenge that may arise from COVID-19.    All three of these programs pay $500 a week. They do take taxes off these payments, therefore what you will actually receive is $450 per week.    All 3 share similar eligib ..read more

The Canada Emergency Wage Subsidy has been extended until December 19, 2020. It is designed to slowly cut down on the amount that businesses will be receiving. Information for periods until November 21st have been released to the public.   The periods are as follows: July 5 to August 1 –Opened up for filing on August 17 2020 August 2 to August 29 – Will open up for filing September 2 2020 August 30 to September 26 September 27 to October 24 October 25 to November 21   The subsidy now consists of a base subsidy & top up subsidy. Base Subsidy: CEWS now offers a base subsidy for a ..read more

At the beginning of COVID-19 the Canadian Government introduced the Canada Emergency Business Account (CEBA). This is a helpful tool for businesses that are short on cash-flow due to the on-going pandemic.  CEBA is an interest-free loan of up to $40,000 from the Canadian Government that is administered through your bank. If you pay it back by December 31, 2022, there is loan forgiveness of 25%, up to $10,000. During this time, you can make payments at whatever frequency you prefer. If you are unable to pay it back by December 31, 2022, it turns into a 3-year fixed loan with a 5% interest ..read more

On January 1, 2020 the federal government instituted a carbon tax in Alberta. To help offset the amounts paid, they have also introduced the Climate Action Incentive for Alberta residents.    Alberta is not the only province that this incentive has been introduced in. Residents in Saskatchewan, Manitoba, and Ontario will also see it this year. For the interests of the post however, it will only be referencing the Albertan incentive.    You access this incentive when you are filing your 2019 tax return. Each family will be able to claim it once. By including this in your taxes, it ensures accu ..read more

COVID-19 is causing a wave of uncertainty for employers in Canada. They are unsure how to handle people going into quarantine, and how to pay and maintain their employees in the long term. This post will address Government of Canada payroll subsitities, filing an ROE and a brief resource on the Work-Sharing program.  ROE   Employer:  A ROE needs to be issued anytime there is an interruption in earnings of 7 days. This means that the employee has no insurable earnings or an employees salary falls below 60% of their regular earnings. This now includes when an employee needs to be in quarantin ..read more

To our valued customers,   COVID-19 is at the forefront of all our minds as the outbreak continues to spread. On-Core would like to assure you that we are closely monitoring the situation and acting based on all recommendations from the Public Health Agency of Canada. The health and well-being of staff and clients are our top priority as this situation progresses. We have increased cleaning of our office, instituted protocol to minimize the risk of exposure, and are making sure that staff who feel sick do not come to work.   In order to lower the risk for both staff and clients, and ensure the ..read more

EI rates have been announced and will again be changing in 2020. The amount of EI you will need to pay has actually decreased slightly this year.    Below is a chart showing both the 2020 and 2019 EI information.    2020 2019 Maximum Annual Earnings $54,200 $53,100 Contribution Rate 1.58% 1.62% Maximum Annual Employee  Contributions $856.36 860.22 Maximum Annual Employer Contributions  $1,198.90 $1,204.31 For more information, and for past EI information you can visit the CRA website here. The post EI 2020 appeared first on On-Core Bookkeeping ..read more

One of your payroll obligations is to create a Record of Employment (ROE) for your employees when there is an interruption in earnings. It is the document used by Service Canada when someone has applied for EI (this includes maternity leave).  Some employers are not aware of their requirement to file a ROE, which can be costly. As with everything government, there is a fine for not filing ROEs on time. They can charge the employer $2,000 or impose jail time of up to 6 months or both.    If you are using a payroll program, it will assist you in the filing of your ROE. It will automatically fill ..read more

A Tax-Free Savings Account is a useful tool in your savings arsenal. However, many people do not understand that there are rules to how much you can contribute to a TFSA each year. If you over contribute the CRA can and will charge you a tax. This post will cover FAQs about TFSAs. Including, what a TFSA is, how much you can contribute, and what penalties you will face if you exceed the limit.   What is a TFSA?   The government started this program in 2009, and it is available to anyone over 18 who has a valid SIN. It allows for an investment that is free of tax, this includes all money gained ..read more

CPP rates have been announced and will again be changing in 2020, this is part of the first phase of the CPP enhancement program started by the government in 2019.    Below is a chart showing both the 2020 and 2019 CPP information.    2020 2019 Maximum Annual Pensionable Earnings $60,100 $57,400 Basic Exemption $3,500 $3,500 Maximum Contributory Earnings  $56,600 $53,900 Contribution Rate 5.25% 5.10% Maximum Annual Employer & Employee Contributions $2,972 $2,748.90 Maximum Annual Self-Employed Contributions  $5,944 $5,497.80   The CPP enhancement program sees rates rising until 2023, wher ..read more