COVID-19 UPDATE

A number of measures announced so far by the federal government to aid businesses during the COVID-19 pandemic.

On March 30th, the federal government announced additional details around the Wage Subsidy Payroll Increases. 

Wage Subsidy Payroll Increase - UPDATED
The previously announced wage subsidy, designed to help employers cover their workers' wages, will be raised from 10 percent to 75 percent, and will be backdated to March 15. Businesses and non-profit organizations seeing a drop of at least 30 percent in revenue due to COVID-19 will be able to qualify for the government's 75 percent wage subsidy program. The government is hoping employers will be able to keep workers on payroll or rehire those that have been laid off. All impacted businesses, big and small, will qualify. The government will cover up to 75 percent of a salary on the first $58,700 which could mean payments of up to $847 a week for each employee. Businesses are encouraged to top up their employees' wages with the remaining 25 percent of the salaries. The federal government mentioned that this program must operate on a basis of good faith and trust, and serious consequences will be faced by companies who decide to misuse or abuse this program.

Canada Emergency Response Benefit (CERB) - UPDATED

To support workers who lost their job due to the COVID-19 pandemic, the federal government has introduced legislation to establish the Canada Emergency Response Benefit (CERB) which combines the previously announced Emergency Care Benefit and Emergency Support Benefit into one simpler and more accessible program. CERB is a taxable benefit that will provide $2,000 a month for up to 4 months for workers who lose their income as a result of the COVID-19 pandemic and covers Canadians who have lost their job, are sick, quarantined or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The CERB would apply to wage earners, contract workers and self-employed individuals who would otherwise not be eligible for EI. The portal for accessing the CERB will be available in early April. For more details on the CERB, please click here. If you do not have a CRA MyAccount, you may wish to create one now if you anticipate applying for this benefit.

Canada Emergency Business Account (CEBA)

Ottawa is also launching a new loan program - Canada Emergency Business Account - whereby banks will be able to offer $40,000 loans, guaranteed by the government and interest-free for the first year, to qualifying businesses. If businesses meet certain conditions, $10,000 of that loan will be forgivable. In addition, the government will be providing $12.5 billion to Export Development Canada and the Business Development Bank, to help small and medium-sized businesses with their cash flow requirements when applying for loans.

GST and HST Payment Deferrals

The federal government has announced they will defer GST and HST payments, plus duty and taxes on imports, until June, allowing businesses to use this money to pay for immediate expenses.

Stay Tuned & Stay Safe for More Updates!