The Canada Revenue Agency (CRA) is recognizing the resilience and hard work of Canadian small businesses as they battle through the COVID-19 pandemic as featured in Small Business Week 2021. The Agency is aware of the pandemic’s implications, particularly on small businesses, and they highlighted their services to provide help. Some CRA services that can help you and your small business now and in the future are listed below.
1. Free Liaison Officer
The CRA provides small business owners and self-employed people with a free Liaison Officer service to help them understand their business tax and GST/HST requirements. A free virtual meeting with a liaison officer is completely private. The information you choose to share with a liaison officer will not be shared with other CRA departments or third parties. These one-on-one sessions are designed to offer assistance and direction, as well as to reduce the stress of filing during an already hectic year. For more information click this Link.
2. Canada Emergency Wage Subsidy (CEWS)
The CRA continues to administer the CEWS on behalf of the Government of Canada to help businesses affected by COVID-19 avoid job losses and facilitate the transition back into normal business operations. If your revenue has decreased as a result of the COVID-19 pandemic, you may be eligible for the CEWS. This program was last extended by the Canadian government until October 23rd, 2021 and the earliest you can apply for it is November 1st 2021. For more information click this Link.
3. Canada Recovery Hiring Program (CRHP)
The CRA also administers the CRHP in addition to the CEWS. As the economy improves, this initiative aims to encourage businesses to recruit and grow. You may be qualified for both CEWS and CRHP as a business. While you are allowed to apply for many subsidies within each claim period, you are only allowed to apply for one subsidy per claim period. If your company qualifies for both subsidies, apply for the one that pays out the most money. For more information click this link.
4. Electronic filing for Businesses
Businesses that file more than five tax slips will be required to file electronically starting January 1, 2022. For businesses of all sizes, electronic filing is faster and more convenient, with fewer errors. Businesses can file electronically with instructions using the CRA’s My Business Account program. This improvement simplifies the filing process for Canadian businesses of all sizes. It also expedites the distribution of returns and benefits to individuals who require them.
5. Scientific Research and Experimental Development (SR&ED)
The SR&ED Program is the largest government-funded research and development program in Canada, with more than $3 billion in tax incentives distributed annually through more than 20,000 claims. The majority of SR&ED claims are filed by small and medium-sized firms, making the program a significant source of financial help for these businesses during the post-COVID-19 economic recovery. For a complete guideline on this, click this link.
6. Dedicated to putting people first
The Canada Revenue Agency (CRA) is dedicated to helping Canadians and small businesses. The Agency is actively listening to small business owners and supportive stakeholders to determine what it needs to do to make it easier to file and pay taxes, as well as receive benefits.
If you’re struggling as a Canadian small entrepreneur due to COVID-19 or any other situation, reach out today for more help from our team at IDM Professional Corporation CPA! Need more information? Talk to us! We’ll answer your questions and provide all the resources we can.]
