While Canwest Accounting has seen most of its clients’ businesses reopen, many are slower than usual, and none will recoup the losses experienced during the lock-down phase of the COVID-19 pandemic in B.C. That’s why Sharlane Bailey, owner of Canwest Accounting, is urging everyone who can to “give thanks” by supporting local businesses as much as possible to ensure they can keep their doors open and continue to employ staff.
“There has never been a more critical time to support local businesses by shopping in their stores, buying food from their restaurants, or using their services,” said Sharlane. “Still follow all the precautions Dr Bonnie Henry recommends by wearing a non-medical mask, washing your hands frequently or using hand sanitizer, and keeping 2 metres away from everyone outside your bubble. Businesses are also required to have safety protocols in place to prevent the spread of COVID.”
This month, Sharlane is sharing responses to a few questions Canwest Accounting has received lately.
Do sole-proprietors registered for GST need to charge GST if they start a small side-business that is separate from their primary occupation?
No, as long as you keep the earnings and expenses separate from your existing business, we can record them separately, and there aren’t any GST issues until sales reach $30,000 for that business.
What are the requirements for the Canada Emergency Wage Subsidy program and how long is it in place for?
The dedicated staff at Canwest Accounting continue to assist clients with their filings for the Canada Emergency Wage Subsidy (CEWS) program, which provides funding to cover approximately 75% of employee wages, depending on how much your revenue dropped. Businesses with less than a 30% drop in revenue from the previous year may also qualify. The program has been extended until November 21, 2020, with the intent of extending it again until December 19, 2020, or possibly beyond. Remember that funds received through the CEWS are taxable. For more information, and to see if your business may qualify, visit the government’s website.
Can I still apply for a loan through the Canada Emergency Business Account?
The short answer is yes! The program has been extended until October 31, 2020. The staff at Canwest Accounting help clients applying for the interest-free Canada Emergency Business Account (CEBA) loan of up to $40,000, which is granted through eligible financial institutions. Up to $10,000 of the loan or 25 percent will be eligible for complete forgiveness if $30,000 is fully repaid on or before Dec. 31, 2022. The criteria for CEBA loosened over the summer to include a wide variety of different business models. Applicants need to demonstrate having eligible non-deferrable expenses of between $40,000 and $1.5 million in 2020. For more information, here is a link to CEBA.
To have the exceptional team at Canwest Accounting save you time and money by answering your questions, doing your bookkeeping, or preparing your tax return, call or email us. Our offices in Victoria and Langford are still closed to the public while we put in place protocols to allow for social distancing, but we have a pickup and drop off service that is very convenient.