CRA strike, taxes for snowbirds and the hottest tech stock: Business and investing news for April 16

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Getting caught up on a week that got away? Here’s your weekly digest of the Globe’s most essential business and investing stories, with insights and analysis from the pros, stock tips, portfolio strategies and more.

Tax filings and passport applications: What could be affected by a strike

Around 155,000 federal government workers – including those renewing passports – could walk off the job as early as this week after an overwhelming majority of members voted in favour of a strike mandate for the Public Service Alliance of Canada. The affected workers are largely administrative staff spread across multiple government services that could cause delays for Canadians getting a boating licence, crossing a border or filing taxes, among other things. The Canada Revenue Agency’s 35,000 workers are also in a position to strike. PSAC and CRA workers have been in a protracted labour dispute with the federal government since last year over wage demands and remote work clauses. If either or both strikes move forward after contract negotiation attempts, Caora McKenna and Samantha Edwards outline all the services that could be disrupted.

A lot of parents are helping adult kids out financially

Nine out of 10 parents with adult kids are helping them out financially, according to an informal survey conducted by Rob Carrick that received over 3,000 responses. Almost 37 per cent of parents with kids over the age of 21 are helping with grocery costs, almost 25 per cent are helping with rent, 10 per cent are helping with mortgage payments and nearly half provide random cash infusions. In terms of the dollars and cents, just 6.6 per cent of parents offering financial support pegged the amount at $1,000 or less. Close to 25 per cent said it totalled $1,000 to $5,000, 64 per cent said $5,000 to $50,000, and the remainder pegged the cost at more than $50,000 a year. The results are as much a commentary on millennial and Gen Z financial independence, as the thinking of parents about their role in supporting adult children. Where it’s financially feasible to help, a lot are doing so.

Canada’s unemployment rate is near all-time lows – in every province

Canada is experiencing a labour boom across the country. In March, eight provinces had unemployment rates below 6 per cent, which has never happened before. According to Matt Lundy, the national rate of 5 per cent is hovering near all-time lows, a reflection of tight labour market conditions. The labour participation rate was 65.6 per cent in March, about the same as five years earlier.

Companies drawing employees back to the office with more perks

About 83 per cent of companies across the country are making efforts to entice employees to work more frequently in the office, writes Clare O’Hara. These include free meals, in-house baristas, commuter benefits, enhanced workplace set-ups – and even puppies. At Manulife Financial Corp.’s head office in Toronto, about 91 per cent of staff who worked in-office pre-pandemic have returned, thanks to perks like a 25-per-cent discount on food and beverages as well as freshly renovated social spaces. Manulife’s numbers stand out for a company operating in Toronto – a city that has fallen behind the average occupancy achieved in major U.S. cities, with an average weekly attendance rate of 43 per cent in downtown office buildings, according to recent data.

Snowbirds beware: you may be taxed as U.S. citizens

A growing number of Canadians have been blindsided by unexpected tax bills, penalties, or worse from the U.S. Internal Revenue Service (IRS) since an information-sharing agreement between the two countries was implemented almost a decade ago. According to Dale Jackson, the Canada-United States Enhanced Tax Information Exchange Agreement Implementation Act came into effect in 2014 with the aim of collecting untapped tax revenue from Canadians who spend a significant amount of time in the U.S. The tax treaty attempts to determine which side of the border Canadians fall on for tax purposes through a complicated “substantial presence” formula put forward for the IRS. If snowbirds spend more than 182 days in the U.S. based on a three-year rolling average, they can be taxed as U.S. citizens.

Don’t sleep on Constellation Software stock

Canada’s hottest tech stock, Constellation Software Inc., has surged to record highs after shaking off a lull in 2022, and the company is picking off acquisitions at a brisk pace. As David Berman explains, Constellation is a consolidator within the tech sector. It buys mostly small companies that develop vertical market software (VMS), or software that is tailored for specific industries, and generally holds these companies over the long term. Successful deals translate into rising cash flow, and cash is then used to finance additional deals. The good news is that the company appears to be having no trouble finding attractive acquisitions. The total value of deals in 2022 increased to more than $1.6-billion, up from about $1.2-billion in 2021 and $531-million in 2020.

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Now that you’re all caught up, prepare for the week ahead with The Globe’s investing calendar.