As your business advisor, we are committed to helping our clients navigate the impact of COVID-19 to save you time and help your business through the crisis.
The federal government has announced several economic measures to assist employers and their employees as a response to the COVID-19 pandemic.
The Canada Emergency Wage Subsidy (CEWS) was announced on March 27, 2020 to provide eligible employers a 75% wage subsidy for up to 12 weeks, retroactive to March 15, 2020. Important update: CEWS has been extended until December 2020.
KWB’s David Wickenberg and Heather Bowie discuss CEWS and other benefit programs in this TVYOU interview:
The 10% Temporary Wage Subsidy for Employers is a three-month measure that will allow eligible employers to reduce the amount of payroll deductions required to be remitted to the Canada Revenue Agency (CRA). The subsidy is equal to 10% of the remuneration you pay from March 18, 2020 to June 19, 2020, up to $1,375 for each eligible employee to a maximum of $25,000 total per employer.
Eligible businesses will receive a $40,000 interest free loan for immediate financial support to cover short term operating expenses, payroll and other non-deferrable expenses which are critical to sustain business continuity.
The program is administered through CMHC to provide rent relief for small businesses struggling to pay their landlords due to financial hardship as a result of COVID-19 for the months of April, May and June 2020.
Work-Sharing (WS) is an adjustment program designed to help employers and employees avoid layoffs when there is a temporary reduction in the normal level of business activity that is beyond the control of the employer. The measure provides income support to employees eligible for Employment Insurance benefits who work a temporarily reduced work week while their employer recovers.
The Government of Canada has announced temporary changes to the Canada Summer Jobs Program (CSJP). Now, employers who hire summer students can apply for a subsidy of up to 100 per cent of the provincial or territorial hourly minimum wage.
Corporations are able to defer, the payment of any income tax amounts and income tax filing deadlines have been extended. This relief would apply to tax balances due, as well as instalments. No interest or penalties will accumulate on these amounts during this period.
Corporations are able to defer, the payment of GST installments or payments due. Filing deadlines remain the same. No interest or penalties will accumulate on these amounts during this period.
The Canada Emergency Response Benefit (CERB) was established to prove $2,000 per month (i.e. $500 per week) to workers who qualify for the benefit for up to 16 weeks.
The Canada Emergency Student Benefit (CESB) provides financial support to post-secondary students, and recent post-secondary and high school graduates who are unable to find work due to COVID-19.
Individuals are able to defer, the payment of any income tax amounts and income tax filing deadlines have been extended. This relief would apply to tax balances due, as well as instalments. No interest or penalties will accumulate on these amounts during this period.