In this exceptional year, more than 8 million Canadians have benefited from the Canadian Emergency Response Benefit (CERB).
Unlike an employee's pay where taxes are deducted directly by the employer, this fixed amount taxable benefit was provided without withholding at source.
Some of your clients may have received the CERB for a few weeks or even months. If they have not set aside a portion of the payments they received, they could end up with a large bill to pay. Your clients will be in great need of your sound advice!
The RRSP, a solution every time
Contributing to an RRSP is an interesting option to reduce your clients' taxable income, reduce their tax bill, or even receive a refund. These contributions could save a few hundred dollars.
In the event that your clients do not have the cash needed to enhance their retirement plan, the RRSP loan can also be an alternative to consider, if they are eligible.
Contact your clients now and help them optimize their CERB situation. Hurry, there are less than three weeks left to invest in an RRSP for the 2020 tax year.
