With the release of the 2021 Federal Budget on April 19, 2021, the government announced an additional means for employers to receive government assistance covering a portion of their employee wages. This program allows eligible employers to claim a subsidy of up to 50 per cent of incremental remuneration paid to eligible active employees between June 6, 2021, and November 20, 2021. With several provincial governments having significantly eased public health restrictions, many businesses are starting to reopen or gradually return to normal operating levels, and the CRHP subsidy could provide a significant benefit for those businesses that have re-hired, or otherwise began to increase their payroll over and above pandemic payroll levels. The following are some of the key details to know about this new important new subsidy.

The Canada Emergency Wage Subsidy (CEWS) for employers was implemented by the passing of Bill C-14 on April 11, 2020, and expanded with the passing of Bill C-20 on July 27, 2020. The subsidy is widely accessible to employers of all sizes and across all sectors of the economy, with the exception of public sector entities. It is intended to support businesses that are hardest hit by the COVID-19 pandemic and would help protect the jobs Canadians depend on during these difficult times.

When the Federal Government presented the 2021 Federal Budget on April 19, 2021, many Canadians were surprised to see only minor proposals relating to personal and corporate income tax. There was one important change, however, that was introduced to help provide tax relief to Canadian Controlled Private Corporations (CCPC). The “Immediate Expensing” rules allow CCPC’s to deduct the full cost of certain depreciable capital assets in the year that they are acquired, accelerating what can often be a significant deduction to reduce taxes owing.

Here are a few important things to know about the Immediate Expensing Rules and how your business can take advantage.