WORKSHOP: Preparing Your 2020 Taxes - Understanding the Impact of Government Supports

Every level of government has stepped up with supports for individuals and businesses this year to help see us all through Covid. With funding announcements made, details following, then updates to programs based on feedback from Canadians, the quantity of information can be overwhelming, particularly for business owners in survival mode just trying to see their way through to recovery.

Tax professionals are used to updating their skills and knowledge base, but this year has seen that proactive approach increasing tenfold, so we are very pleased that Nancy Stabback of Padgett Business Service shared her expertise with us. In this video, our expert explains the key items you should be aware of and tracking for your business accounting to be ready for tax time.

(timing below expert info)

-------------------------------------------- ABOUT OUR EXPERT:

Nancy Stabback, Padgett Business Services

Nancy is a local small business bookkeeping, accounting, and tax professional, who helps small business owners navigate the challenging financial and tax compliance requirements they face.

Before starting with Padgett Business Services, a Franchise operating in both Canada and the United States, Nancy owned and operated several small businesses, providing a unique perspective on the needs of her current clients.

Originally from Beaverton, Ontario, Nancy purchased her first business with family members, and operated a small restaurant. 4 years later, after the sale of that first business, Nancy went on to run a larger foodservice/retail location for another 12 years. At this point, she began working at a local accounting office, and then decided to go on her own with the Padgett Franchise.

Padgett Business Services specializes in Small Business Bookkeeping, Accounting and Tax work for small business owner operators. Nancy began working with Padgett in 1998, purchasing the Franchise location in Orillia, Ontario. In 2014, Nancy partnered with Andy Gubbels, and acquired the Barrie location as well.

During this time, Nancy has served on the Business Enterprise Resource Network Board in Barrie (6 yrs), and on the Padgett Business Services Advisory Council (10 yrs). Nancy also taught Accounting on a very part time basis at Georgian College. Nancy’s Franchise has been in the Padgett Business Services Leadership Club for 11 years in a row. Nancy was featured in an article in the Canadian Business Franchise from the spring of 2017.

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00:00 – WELCOME & INTRODUCTIONS

Moderator: Paul Markle, Barrie Chamber of Commerce

Panel:

Nancy Stabback, Padgett Business Services
Andy Gubbels, Padgett Business Services

00:05 – PRESENTATION

00:05 – Explanation of typical business structures used in discussion
00:06 - Temporary Wage Subsidy (TWS)
00:10 – Canada Emergency Wage Subsidy (CEWS)
00:15 – T4 Reporting Requirements
00:17 – Canada Emergency Business Account (CEBA)
00:22 – Canada Emergency Commercial Rent Assistance (CECRA)
00:23 – Canada Emergency Rent Subsidy (CERS)
00:24 – Ontario Business Support - Link to resources: https://padgetthelps.ca/barrie-chamber-presentation/

00:26 – Q&A

00:26 - My teenagers have been collecting the CERB. How much can I expect them to be paying back? They made more money from CERB then they would have from working.
00:30 - As a self-employed contractor I've been in and out of work since April 2020. I have not collected any of the government funding. I was nervous because of how much the wording was changing. Now that things are more consistent, am I able to claim funding for previous weeks not worked? Is there a timeline to be eligible?
00:34 - Are you able to claim both the CEBA loan and the CERB?
00:38 - My spouse and I have both been working from home. Previously it was just my home office we had been claiming. Will be both be able to claim for home office expenses this year?
00:40 - For the CEBA, what documentation would I need to prove that I spent the loan as required? If I find that I didn’t spend enough to meet requirements, should I set extra aside to pay back? Or would I be better to invest in equipment or something else for my business?
00:45 - Is the CEBA loan taxable?
00:47 - What’s out there to help small businesses?
00:48 - I understand that companies need to fill a new form for workers to get access to this $400.00 Are they changing this again?
00:49 - Is a deferred cost considered an asset?
00:50 - I own 3 companies. Am I able to claim the CEBA loan for each business?
00:52 – My employer has laid me off in March, then put me back on the payroll and has been paying 75% of my wage (I'm still at home not working) If this has been filed incorrectly, who will be responsible to pay back anything, myself or the company?