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Important: Learn about the key points to Canada's Economic Stimulus plan

Client Communication:

COVID-19 Relief Program Summary

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Canada Emergency Benefit Account (CEBA)

$40,000 including $10,000 Grant

10% Wage Subsidy

Canada Emergency Wage Subsidy

(75% Subsidy – CEWS)

Canada Emergency Response Benefit (CERB)

May 20, 2020

Program will be expanded to sole proprietors receiving income directly from their businesses, businesses that rely on contractors and family-owned corporations that pay employees through dividends rather than payroll.

How to I qualify? (payroll lower than $20,000): 

• have a business bank account

• have a CRA business number, and to have filed a 2018 or 2019 tax return.

• have eligible non-deferrable expenses between $40,000 and $1.5 million.

April 16, 2020

Will now be available to businesses with payroll between $20,000 and $1.5 million in 2019


April 9, 2020
All the banks now have the application available online. Completing the application will take less than a minute. You might have to wait few minutes given the volume of applications.

April 8, 2020
How to apply?
Only online at your bank's website. Calling your branch will not help.

Applications for BMO start April 9, other banks will be soon/ same.

April 2, 2020
What is it?

  • Loan of up to $40,000
  • Interest-free
  • Repay by Dec 31, 2022 and receive 25% forgiveness

How do I qualify?

Small business should have 2019 payroll of $50,000 to $1,000,000.

How to apply?

Online via your bank. Applications to come out this week.

What is it?

The subsidy is equal to 10% of the remuneration you pay between March 18, 2020, and June 20, 2020, up to $1,375 per employee and to a maximum of $25,000 total per employer.


How do I qualify?

You are an eligible employer if you are a:

  • Canadian-controlled private corporation or are a non-profit organization, registered charity,
  • have an existing business number and payroll program account with the CRA on March 18, 2020; and
  • pay salary, wages, bonuses, or other remuneration to an employee.

To claim wage subsidy:

  • must have a small business deduction limit greater than nil allocated in the prior year
  • taxable capital for associated group below $15,000,000

How to apply?

When: You can start reducing your source deduction remittances in the first remittance period that includes remuneration paid between March 18, 2020, and June 20, 2020.
How much: The subsidy is claimed by reducing the income tax portion of your remittance ONLY by the minimum of the 3 amounts:

  • Maximum per employer of $25,000
  • Fixed rate of 10% of the remuneration paid to eligible employees during the eligible period
  • Total number of eligible employees multiplied by a fixed amount of $1,375


NOTE: An eligible employee means the employee must be “employed” on the date of the eligible payment

Separate subsidy per employer (associated employer rules don’t apply)

Calculation worksheet: Click Here

May 20, 2020

  • extended three months to the end of August 2020 with 30% required revenue decrease is being reviewed for the expanded period
  • Can elect the 10% Temporary Wage Subsidy to be 0% on CEWs to receive a 100% of the subsidy. Must indicate the 0% election on the self-identification form under the 10% temporary wage subsidy program. 

The following legislative amendments have been proposed as well:

• flexibility for employers of existing seasonal employees with regards to the baseline remuneration calculation;

• to have CEWs apply to corporations formed on the amalgamation of two predecessor corporations

May 8, 2020

Program to be extended past June 6 expiry date.

CBC Article: Click Here

April 21, 2020

Applications to be released April 27, 2020.

We (JRA) can make the application for you via Represent a Client.

CRA has launched a CEWS Calculator for Employers, this can be accessed at: Click Here

April 16, 2020

Applications will be due September 30, 2020.

April 9, 2020
For cash flow purposes it might make sense for you to commence by taking the 10% Wage Subsidy.

The CEWS application will be reduced by the 10% subsidy dollar for dollar.

April 13, 2020
What is it?

75% wage subsidy to eligible employers for up to 12 weeks, to a maximum $847 per week per employee.

Which would be $10,164 (847 x 12 weeks) if maxed out.

Includes 100% refund for employer-paid contributions for Employment Insurance and Canada Pension Plan.

How do I qualify?

  • 15% drop in revenue in March and 30% for the following months.
  • Eligible employers are: individuals, taxable corporations, and partnerships consisting of eligible employers as well as non profit organizations and registered charities.

Calculating revenue: Its revenue from its business carried on in Canada earned from arm’s-length sources.

To calculate the revenue drop for the eligible periods:

  1. calculate revenues under the accrual or cash method
  2. And either compare:
    (a) monthly revenue year-over-year OR
    (b) each month with the average of January and February 2020


Interaction with other benefits:
10% wage subsidy?
Any benefit from 10% subsidy will reduce the dollar for dollar the benefit from here.

CERB:
Employees who have been without remuneration for 14 or more consecutive days in the eligibility period will NOT be eligible.


How to apply?

My Business Account (NOT OUT YET – MIGHT TAKE 3 - 6 WEEKS). Expectation is the 75% cheques start coming in July.

Subsidy Calculation:

The subsidy amount for a given employee on eligible remuneration paid for the period between March 15 and June 6, 2020 would be the greater of:

(1) 75% of the amount of remuneration paid, up to a maximum benefit of $847 per week; and

(2) the amount of remuneration paid, up to a maximum benefit of $847 per week or 75% of the employee’s pre-crisis weekly remuneration, whichever is less.

Subsidy for a non-arm's length individual is restricted to (2)


The pre-crisis remuneration - based on the average weekly remuneration paid between January 1 and March 15

inclusively.

For more information see: Click Here

April 15, 2020

Changes to the eligibility rules to:

  • Earn up to $1,000 per month while collecting the CERB.
  • Extended to seasonal workers who have exhausted their EI regular benefits and are unable to undertake their regular seasonal work because of COVID-19.
  • Extended to workers who have recently exhausted their EI regular benefits and are unable to find a job because of COVID-19


April 9, 2020

To apply for the Canada Emergency Response Benefit via CRA My Account you do not need a security code.

April 2, 2020

What is it?

A benefit of $2,000 per four weeks, to a maximum of 16 weeks (4 months)

How do I qualify?

  • Resident in Canada + 15 years or older.
  • Earned at least $5,000 from employment , self employment or maternity/ paternal benefits during 12 month period prior or in 2019
  • Ceased work because of illness or job loss for 14 consecutive dates and without income for those 14 consecutive days

How to Apply?

Via My Account with CRA/ phone call to CRA.

Applications already available

Other:

Cannot get CERB and Employment Insurance (EI).

EI is based on 55% of insurable earnings – apply for CERB if 55% of insurable earnings does not give you over $2,000/ month

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