January 2021

On Thursday, January 28, 2021, Minister of Small Business, Export Promotion and International Trade, Mary Ng, announced the launch of the Highly Affected Sectors Credit Availability Program, or HASCAP.

The program will provide financial support to businesses that have been hardest hit by the pandemic. The Business Development Bank of Canada (BDC) will work with participating Canadian financial institutions to offer government-guaranteed, low-interest loans of up to $1 million. HASCAP will help businesses with their day-to-day operating costs during the COVID-19 crisis and enable them to invest in their longer-term prosperity. HASCAP is available to businesses across the country, in all sectors, that have been hit hard by the pandemic. This includes restaurants, businesses in the tourism and hospitality sectors, and those that rely on in-person service.

To read more about this program please click here.

For more information, please contact your Lipton advisor.

In order to assist you with your 2020 and 2021 tax planning, we are pleased to provide you with the following information in connection with Registered Retirement Savings Plans (RRSP) and Tax-Free Savings Accounts (TFSA) as follows:

RRSP

• The maximum contribution limit for 2020 is $27,230.
• The deadline for 2020 contributions is March 1, 2021.
• Your contribution limit for 2020 is noted on your 2019 Notice of Assessment.
• The maximum contribution limit for 2021 is $27,830.

TFSA

• The contribution limit for 2021 is $6,000.
• The cumulative contribution limit from 2009 to 2021 is $75,500.

The rules regarding RRSP and TFSA contributions can be complex. 

Please contact your Lipton LLP advisor if you would like to discuss your particular situation further.

In order to facilitate the accurate preparation of your 2020 T4 information returns, we are pleased to enclose a summary of certain taxable benefits that may apply to your employees, including new information for 2020 filings.

For further information, please click here

It should be noted that, as mentioned last year, if you are submitting more than 50 information returns (slips) you are required to file electronically.  If you fail to comply with this requirement, you may be subject to an incorrect filing format penalty. We can assist you in ensuring your compliance with these new rules.

If your T4 information return is being prepared by Lipton LLP, we will be electronically filing all 2020 T4 information returns whenever possible. If you have any questions concerning the preparation of 2020 T4 information returns and slips, please contact your Lipton advisor.

The Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy (CERS) applications are due on or before the later of:

1. January 31, 2021; and
2. 180 days after the qualifying period.

This means that the CEWS claim periods 1 through 5 are due to be filed on or before January 31, 2021. 

Please see below a summary of the filing deadlines for your reference:

CEWS/CERS filing deadlines (as of January 11, 2021)

For more information, please contact your Lipton advisor.

The Ontario government continues to provide a variety of supports to employers facing challenges as a result of COVID-19. The government will now be providing even more support to small businesses that are required to close or severely restrict their operations due to the necessary Provincewide Shutdown. This will help ensure they can continue serving their communities and employing people once COVID-19 has been eradicated.

To review this announcement and further details, click here.

For more information, please contact your Lipton advisor.