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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)

October 13, 2020

Program expanded to provide an additional interest-free loan of up to $20,000.

Another $10,000 of this new loan would be forgivable, if repaid by December 31, 2022.

The application deadline: extended to December 31, 2020.

More details on this change, including the application process, are expected soon.

September 24, 2020

New enquiries line process: in order to provide a quicker response time, CEBA line callers will be asked to leave a call back number. An agent will return the call between Monday and Friday from 10:00 am to 9:00 pm EST.

A return call may take more than 7 business days.

September 10, 2020

Deadline for CEBA applications is extended from August 31 to October 31, 2020.

June 26, 2020

Expanded program application start June 26, 2020. 

June 22, 2020

Expanded program which was to commence June 19, 2020 was put on hold. 

Updates to come

June 18, 2020

Expanded program to commence June 19, 2020. 

Applications under the Non-Deferrable Expenses Stream (total employment income paid to employees in 2019 of $20,000 or less, and 2020 Eligible Non-Deferrable Expenses) follow a two-step process:  

o Step 1: Apply at your financial institution

o Step 2: You will be directed to a CEBA website to provide supporting documentation of the 2020 Eligible Non-Deferrable Expenses and to complete the application. 


If successful, the Government of Canada will notify your bank and provide funding for your CEBA loan.

Click here for more information: https://ceba-cuec.ca/#

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.

July 30, 2020

Self Identification Reporting now available via:

• Represent a Client
• My Business Account
• Filing the PD27-20

This form is required to be completed if your business is eligible either for 10% subsidy only or for both 10% subsidy and CEWS. Filing this form will ensure that you do not receive a discrepancy notice from the CRA.

April 2, 2020

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

October 13, 2020

The CEWS program has now been extended until June 2021, with an increased subsidy rate of 65% until December 2020. The legislation for this change should be released soon.

September 24, 2020

CEWS is extended to summer of 2021. Details to follow.

July 30, 2020

All the proposed changes were passed. Extended program details can be found on here: Link or see below the chart.

July 13, 2020

Program to be extended to December 2020

https://www.ctvnews.ca/politics/feds-to-extend-wage-subsidy-program-until-december-1.5021990

Applications for claim period 4 (June 7 to July 4) are open as of July 8, 2020. The eligibility criteria will be the same as period 1 to 3.  

Any potential changes would commence as of periods 5 (July 5 to August 1) and/or 6 (August 2 to August 29).

https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html


June 22, 2020

Proposed period 4 (June 2020) reduction is 30%

Period 5 & 6 are being reviewed

https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-frequently-asked-questions.html

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

August 4, 2020

CERB is set to end September 26, 2020

June 18, 2020

Maximum number of periods that can be claimed is 6 four-week periods i.e. 24 weeks

Return or repay CERB if you no longer meet the eligibility via: 

• CRA My Account

• Online Banking 

• By Mail

Click here for more information: https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra/return-payment.html


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

July 22, 2020

Proposed changes for period starting in July to December:

  • If in Period 5 & 6 under the period 1 to 4 rules are better for you than the new proposed method of calculation, you can use the old method instead.
  • Rate of CEWs will depend on the level of revenue decline:
    • Base subsidy (49% revenue drop)
    • And the Top-up subsidy (50% and over revenue drop)
  • Base subsidy rate will be as follows:

Period 5Period 6Period 7Period 8Period 9
Max. benefit per employee$677.00$677.00$565.00$452.00$226.00
Revenue drop




50% and over60%60%50%40%20%
0% to 49%1.2 x revenue drop1.2 x revenue drop1.0 x revenue drop0.8 x revenue drop

0.4 x revenue drop

Example 1: 20% decrease in sales and the employee makes $1,129. Available Base CEWs is $1,129 x 1.20 x 20% = $270.96

Example 2: 50% decrease in sales and the employee makes $1,129. Available Base CEWs is $1,129 x 60% = $677.00.

  • Top up Subsidy rate will be as follows:
    • Revenue drop calculated when comparing revenues in the preceding 3 months to the same months in the prior year
    • Top up subsidy CEWs rate: (3-month revenue drop - 50%) x 1.25
3 month average revenue dropTop up CEWs rate
70% and over25%
65%18.75%
60%12.50%
55%6.25%
  • A 70% drop in revenue will result in the maximum base + top-up subsidy
  • Combined base and top-up subsidy rates are as follows:

Period 5Period 6Period 7Period 8Period 9
Max. benefit per employee$960.00$960.00$847.00$734.00$508.00
Revenue drop




50% and over1.25 x (3 month revenue drop - 50%) (Max. 25%)1.25 x (3 month revenue drop - 50%) (Max. 25%)1.25 x (3 month revenue drop - 50%) (Max. 25%)1.25 x (3 month revenue drop - 50%) (Max. 25%)1.25 x (3 month revenue drop - 50%) (Max. 25%)
0% to 49%1.2 x revenue drop (Max. 60%)1.2 x revenue drop (Max. 60%)1.0 x revenue drop (Max. 50%)0.8 x revenue drop (Max. 40%)0.4 x revenue drop (Max. 20%)
 

August 14, 2020

Further clarification:

  • Filing deadline: January 31, 2021 (extended)
  • Period 5 applications open August 17
  • CEW is taxable in the period received (deemed received the last day of the period)
  • You MUST use either cash or accrual consistently for Period 1 to 9 (no change in methodology permitted)
  • You can elect per employee per claim period the optimum baseline:

Period

Default

Elects
1 to 3January 1 to March 15, 2020March 1 to May 31, 2019
4January 1 to March 15, 2020

March 1 to June 30, 2019 or

March 1 to May 31, 2019

5 to 9January 1 to March 15, 2020July 1 to December 31, 2019
 With respect to Period 5 onward:

  • If the Period 1 to 4 rules are better for you than the new proposed method of calculation for Periods 5 & 6, you can use the old method instead.

This is per employee per week:

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