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COVID-19: Government Assistance

COVID-19: Government Assistance

Please see our COVID Assistance section for more up to date information and resources related to COVID-19: Click Here to Visit

 

 

To our client and web page users.

We have provided a quick summary comparison of the recently announced government programs, and are continuing to update the tables below as new information is released.
The information contained is based on government publications on these items.
Legislation has not yet been passed on all of these programs and as such they may not be accurate or complete.
Given the magnitude and the urgency of financial help that our clients may have, we have decided to publish our analysis.
Your Team at NCCA LLP

[updated April 15, 2020]

Source Deductions

Date
Announced:

Source Deduction Filing Requirements

April 1, 2020

You will continue to prepare your payroll in the normal manner.  All relevant deductions should be made
according to statute.  You should file
your periodic payroll details with Revenue Canada on or before your respect
due dates.  Your remittances may or may
not reflect the Temporary Small Business Wage Subsidy (described below).

Revised Filing Requirements

Date
Announced:

Goods and Services Tax
(GST)

Personal
Income Tax
(T1)

Corporate
Income Tax
(T2)

April 1, 2020

In a new Q&A page on GST/HST, the CRA made the following statement
on the deadlines for GST/HST returns: “The deadline for businesses to file
their returns is unchanged. Those who are able to,
should continue to file their GST/HST returns on time, reporting their net
tax for the reporting period to help facilitate tax compliance and
administration. However, recognizing the difficult circumstances faced by
businesses, the CRA won’t impose penalties where a return is filed late
provided that it is filed by June 30th.

The deadline for most T1 returns is now  June 1, 2020

The federal government announced additional extensions to many
tax-related deadlines. Most federal tax filing deadlines have been extended
to June 1, 2020, including the March 31 deadline for T1134 forms and
T2s. 

Applies to corporations that would otherwise
have a filing due date after March 18 and before June 1, 2020.

Revised Payment Dates

Date
Announced:

Goods and Services Tax
(GST)

Personal
Income Tax
(T1)

Corporate
Income Tax
(T2)

April 1. 2020

GST deferral – Generally, GST/HST remittances can
now be deferred until June 30, 2020. Deferrals will similarly be available
for customs duty and sales taxes for importers. It is unclear whether GST/HST
returns will have to be filed while the deferral is in effect and we are
following up with the government. 

 . The CRA will allow all taxpayers to defer, until after
August 31, 2020, the payment of any income tax amounts that become owing on
or after today and before September 2020. This relief would apply to income
tax balances due, as well as instalments and no
interest or penalties will accumulate on these amounts during this period.

Administrative income tax actions required of taxpayers by the CRA
that are due after March 18, 2020, can be deferred to June 1, 2020; these
include filing returns, elections, designations, and information requests

Tax payments deferral includes provincial income
tax. On the income tax payment deferral deadline, it is our understanding
that the payment extensions announced will apply to provincial income tax in
those provinces where the federal government collects tax. Alberta and Quebec
have announced their own extensions.


Federal Government

Source: https://www.canada.ca/en/services/benefits/ei/cerb-application.htm

We have prepared the following table listing the attributes of the various government programs that have been announced by the federal government (over the last few weeks. The attributes of the various programs have changed and will probably change in the future. It should be pointed out that some of the programs have not passed into law as of this date. We have provided the summary of these programs based on the knowledge we have as of April 15, 2020.

 

Long Name

Revised

Employment

Insurance

Canada Emergency

Response Benefit (CERB)

Temporary Small

Business Wage

Subsidy

Canada Emergency

Business Account

Canada Emergency

Wage Subsidy (CEWS)

Potential Benefit

55% of average weekly insurable earning to a

Maximum of $573.00 per week

$500.00 per week

10% of Calculated

Gross Payroll

$40,000 interest

free loan, repayable  amount
could be

reduced by $10,000.00

if repaid before

December 31, 2022

Generally, 75%

of calculated

Gross Payroll

up to a maximum

of $857.00 per week

per employee

Period covered

March 18, 2020 to June 18, 2020

16 weeks

March 15, 2020

to June 6, 2020

16 weeks

March 15, 2020

to June 6, 2020

16 weeks

March 15, 2020

to June 6, 2020

Taxation of Benefit

The individual will receive aT4A-EI from the government and the
amounts will be Taxable

The individual will receive aT4A from the government and the amounts
will be Taxable

The business entity will receive a T4A from the government and the
amounts will

be Taxable

The business entity will receive a T4A from the government and the
amounts will

be Taxable

The business entity will receive a T4A from the government and the
amounts will

be Taxable

Eligibility

“You will have to have been laid-off after March 15, 2020.  Your previous employer will have to have
issued you a separation slip.  The
benefit of this program is that your waiting period will be reduced from the
normal two week period to being eligible immediately

Generally EI is available to individuals who:

 -were employed in insurable
work activities;

 -their  employment was terminated through no fault
of their own;

 -worked the required number of
insurable hours (at least 420 hours) during the last period

 Before they previously had a
claim under EI”

“To be eligible to receive the Canada Emergency Response Benefit
(CERB) from Service Canada, the following must apply:

You must reside in Canada

You are 15 years of age or older at the time of application

You have stopped or will stop working for reasons related to
covid-19, or because you are unable to work due to illness, or because you
lost your employment for other reasons beyond your control; and

o If you are submitting for your first benefit period, that you have
stopped or will stop working for at least 14 consecutive days within the 4
week benefit period; or

o If you are filing for a subsequent benefit period, you did not
receive any employment or self-employment income for the period for which you
previously claimed the benefit and do not expect to receive any employment or
self-employment income in the 4 week benefit period

You have not quit your job voluntarily

You are not receiving nor have you applied for the CERB from the
Canada Revenue Agency nor are you receiving Employment Insurance benefits for
the same benefit period

You have earned a minimum of $5,000 in income within the last 12
months or in the 2019 calendar year from one or more of the following
sources:

Employment Income;

Self-Employment income.

To be eligible to receive the Canada Emergency Response Benefit
(CERB) from Service Canada, the following must apply:

You must reside in Canada

You are 15 years of age or older at the time of application

You have stopped or will stop working for reasons related to COVID-19, or because you are unable to work due to illness, or because you
lost your employment for other reasons beyond your control; and

If you are submitting for your first benefit period, that you have
stopped or will stop working for at least 14 consecutive days within the 4
week benefit period; or

If you are filing for a subsequent benefit period, you did not
receive any employment or self-employment income for the period for which you
previously claimed the benefit and do not expect to receive any employment or
self-employment income in the 4 week benefit period

You have not quit your job voluntarily

You are not receiving nor have you applied for the CERB from the
Canada Revenue Agency nor are you receiving Employment Insurance benefits for
the same benefit period

You have earned a minimum of $5,000 in income within the last 12
months or in the 2019 calendar year from one or more of the following
sources:

Employment Income;

Self-Employment income.”

“The eligibility for this program includes the following  types of entities:

 Individual;

 Partnership;

 Corporation, eligible for the
small business deduction;

 Nonprofit organization;

 Registered Charity

 

You must have been registered with Canada Revenue Agency
,
with an assigned  payroll
number, as of March 18, 2020.

You must have paid salary, wages, bonuses and any other remunerations
to an eligible employee “This program consists of an interest free loan
up to $ 40,000.00 to help small business cover their

Operation costs.

In order to be eligible for this loan you have to be

 A small business entity;

 Not for Profit entity.

The qualified entity must have:

 Gross payroll of between
$50,000.00 and $ 1,000,000.00 in 2019;

With respect to the repayment of this loan;

 -it is interest free until
December 31, 2022;

 -if the borrower repays three
quarters of the total loan prior to December 31, 2022, then

 One quarter of the initial
loan will be forgiven.

The benefit is calculated at 10% of the eligible remuneration paid
from March 18, 2020 to June 19, 2020.

Eligible remuneration is determined by totaling the eligible
remuneration paid to all of your employees.

The eligible remuneration paid to an employee is the lessor of the
actual remuneration or   $1,375.00.

The maximum claim is $ 25,000.00
per eligible entity.”

 

April 15 Update:
Changes to the eligibility rules:

Allow people to earn up to $1,000 per month while collecting the CERB.

Extend CERB to seasonal workers who have exhausted their EI regular benefits and are unable to undertake seasonal work as a result of the COVID-19.

Extend CERB to workers who have recently exhausted their EI regular benefits and are unable to find a job or return to work because of COVID-19.

 

 

 

“This program consists of an interest free loan up to $
40,000.00 to help small business cover their

Operation costs.

In order to be eligible for this loan you have to be

 A small business entity;

 Not for Profit entity.

The qualified entity must have:

 Gross payroll of between
$50,000.00 and $ 1,000,000.00 in 2019;

With respect to the repayment of this loan;

 -it is interest free until
December 31, 2022;

 -if the borrower repays three
quarters of the total loan prior to December 31, 2022, then

 One quarter of the initial
loan will be forgiven.”

 

 

“This subsidy-Grant– would be available to eligible employers
that see a drop of at least 30% of their revenue and that pay wages to
employees.   This grant as of now does
not apply to dividends paid by corporations.

Drop in revenue is carried out by comparing the current month’s
revenue with the corresponding month in the prior year and then calculating
the difference and then the percentage change.

Eligible employers would include the following:

 Individuals;

 taxable corporations;

 partnerships consisting of
eligible employers;

 nonprofit organizations;

 Registered charities. 

Revenue attributes

Revenue is from its business carried on in Canada, does not include
foreign income;

Revenue would exclude items earned from extraordinary items;

Revenue would exclude amounts considered to be on account of capital;

Generally Revenue would exclude amounts  earned from arm’s-length (ie: unrelated)

Sources, however a special rule will apply to employees that do not
deal at arm’s length (related) with the employer. The subsidy amount for such
employees will be limited to the eligible remuneration paid in any pay period
between March 15 and June 6, 2020, up to a maximum benefit of $847 per week
or 75 per cent of the employee’s pre-crisis weekly remuneration

 Revenue would be calculated
using the employer’s normal accounting method

Eligible Wages would be calculated as the gross calculated amount of
wages paid to all employees calculated as the lessor of:

 75% of the employee’s average
wage before March 15, 2020; 

 The actual amount paid to the
employee during the relevant application period;

 $847 per week.

To receive this subsidy-grant you have to make a claim monthly.  The claim is currently limited to three
periods-months.  The claim can be made
for any one or all months.  The claim
can be made when you calculated revenue reduction is at least 30%.  The claim periods are as follows along with
the period in which you will be making the calculation can make the claim:

March 15, 2020 to April 11, 2020 March 2020 compared of March 2019

April 12,,2020  to May 9,
2020  April 2020 compared to April 2019

May 10, 2020 to June 6, 2020
May 2020 compared to May 2019 

You can make a claim under the Temporary Small Business Wage Subsidy
program and under the Canada

Emergency Wage Subsidy, but not both at the same time.  The choice is your choice.

If you are claiming under the Canada Emergency Wage Subsidy you
cannot include the remuneration paid to an employee in a week that falls
within a period for which you have made a claim under the Temporary Small
Business Wage Subsidy program.”

Eligibility
Revenue

Calculation

April 8 Update:

Receipt of Non-eligible dividends will count against the 5,000
threshold

April 8 Update:

The criteria for the revenue decline is now 15% (it originally was
30%)  for only the month of March,  the bases for determining the revenue can
be done either under a cash or an accrual bases for both periods-the same
method has to be used for both periods

April 11 Update:

Please see section below this table.

How to Apply

you have to apply

at Service Canada

you have to apply

monthly, using “My Business Account”

You will apply at a registered financial institute

(banks and credit unions)

you have to apply

monthly, using “My Business Account”

When to Apply

As soon as possible

April 6, 2020

you will calculate

the benefit and

apply it against your source deduction payments

On or after April 6, 2020

April 6, 2020

Records to Keep

Your separation slip

The government  has not yet
stipulated the

records that one

should keep

Details on gross wages paid during the monthly period

(copy of payroll journal)

A calculation of the benefit

Details on gross wages paid during the

monthly period

(copy of payroll journal) Copy of your 2019 T4 Summary

Details on gross wages paid during the

monthly period

(copy of payroll journal)

A calculation of the benefit

What You Receive

A credit equal  to

the calculated benefit.

The Credit can either be transferred to your bank account or the

government will send you a cheque (4 to 6)

weeks after the

application

A credit equal to

Approximately $2,000 for each application period. The

Credit can either be transferred to your bank account or the
government will send you a cheque (4 to 6) weeks after the application

A credit against

your source deduction payment

An interest free loan up to $40,000.00 with a potential forgiveness
of 25% of the gross loan, if three

quarters of the loan is repaid prior to December 31, 2022

A credit equal to

Approximately 75% of your eligible gross

payroll amounts. The Credit can either be
transferred to your bank account or the government will send you a cheque (4
to 6 weeks after the application

More Details

Canada Emergency Wage Subsidy

The 75% Canada Emergency Wage Subsidy

Currently, the Bill provides for the CEWS program to end June 6, 2020, however, the Minister has the power to extend the CEWS program to September 30, 2020 without having to recall Parliament.

A “qualifying entity” may apply for CEWS. Taxable corporations, individuals, registered charities, most non-profit organizations, and partnerships with these entities as members may all potentially be qualifying entities.

To qualify, the entity must have a payroll remittance number with the Canada Revenue Agency (“CRA”) as of March 15, 2020, and the entity must meet the revenue decline test.

What is the maximum subsidy under CEWS?

Per employee, the maximum would be $847 per week * 12 weeks (March 15 to June 6, 2020, unless the government extends the program) = $10,164. There is no maximum per employer.

Revenue Tests

The below chart summarizes the revenue decline test for each of the three claim periods:

As described above, the revenue decline test looks at whether the “qualifying revenue” has declined at least 15% (for Period 1) or 30% (for Period 2 and 3).  For Period 1, the revenue decline test is met if the qualifying revenue during March 1 to March 31, 2020 was 15% lower than the qualifying revenue during March 1 to March 31, 2019. The same logic applies for Periods 2 and 3 but the required decline becomes 30%.

Alternatively, the month in 2020 may be compared to the average qualifying revenue in January and February 2020 in one of two situations:

  1. On March 1, 2019, the employer was not carrying on business or its ‘ordinary activities’;
  2. Or the employer makes an election to use the alternative method for consistently all of Claim Periods 1, 2 and 3.

This means that for an employer that was carrying on business or its ordinary activities on March 1, 2019, they either use the default method for all Claim Periods or make an election to use the alternative methods for all Claim Periods.  But for an employer who wasn’t in that position on March 1, 2019, that employer may flip flop between the methods, e.g. it can compare March 2020 qualifying revenue to March 2019 for Claim Period 1, then switch to comparing April 2020 qualifying revenue to January/February 2020 for Claim Period 2.

We are delighted to see that once an employer is found to be eligible for a specific period, the employer would automatically qualify for the next period. This removes the incentive for businesses from trying to recapture their lost revenues over the next couple months. Also, in some circumstances, it provides certainty to business owners that they will qualify for an upcoming month without having to ‘predict’ future revenues;

In addition, Companies may elect to use the cash method of accounting in determining if there was a decrease in qualifying revenue. Under the cash method, an unpaid invoice will not be part of the qualifying revenue in April 2020. However, if the election is made, the company must be consistent in using the cash method for all Claim Periods (including the previous March period).

Does it make sense for me to wait to apply for CEWS after I have determined monthly revenues for March, April, and May 2020?

Businesses may apply as soon as the portal is open for registration (which is said to be 2-4 weeks from April 12, 2020). However, if a business is not cash strapped, it may actually be advantageous to wait to apply for CEWS. In order to be a “qualifying entity”, an employer need only file an application for CEWS in respect of a qualifying period before October 2020.

Qualifying revenue

The revenue decline test is based on “qualifying revenue” during the months being tested. What does this term mean? The legislation defines “qualifying revenue” as the

  • inflow of cash, receivables or other consideration arising in the course of the ordinary activities of the [employer] – generally from the sale of goods, the rendering of services and the use by others of resources of the [employer] – in Canada in the particular period
  • It excludes, for greater certainty, extraordinary items
  • It excludes amounts derived from persons or partnerships not dealing at arm’s length with the [employer]
  • It excludes, for greater certainty, [any CEWS and the 10% wage subsidy received]

All of the above is to be determined in accordance with the employer’s “normal accounting practices” but an election can be made to determine revenue on the cash method instead for all Claim Periods. For some, the revenue determination may be very straight forward. But for some businesses, this elaborate definition raises many questions.

For organizations with multiple entities, the entity that employs people may not actually be the entity that earns revenue from customers. Since qualifying revenue excludes amounts derived from non-arm’s length persons (non-arm’s length generally means a close relationship), there were concerns that the revenue decline test would not be applied properly in those situations. To tackle this, the Bill provides several special rules for multi-enterprises, such as:

  • All members of an affiliated group (affiliation generally means common control by a person or spouse) may jointly elect to use the same consolidated qualifying revenue for the revenue decline test;
  • Where an employer entity receive substantially all (typically means 90% or more) of its revenue from non-arm’s length persons, a joint election may be made to calculate the employer’s decline in revenue based on the non-arm’s length person’s decline in revenue. A complicated formula is involved.
  • Alternatively, a group that normally prepares consolidated financial statements may choose to determine qualifying revenue separately for each member, but every member of that group must do the same.

Eligible employees and remuneration

An “eligible employee” means an individual employed in Canada by the employer in the Claim Period, other than an individual who is without remuneration by that employer in respect of 14 or more consecutive days in the Claim Period. In other words, if the employer has not paid any wages (or other remuneration) to that employee in respect of 14 or more consecutive days in a Claim Period, the employee is not an “eligible employee” and any wages the employer does pay in respect of the rest of the same Claim Period do not qualify for CEWS. This seems to be an imperfect measure to prevent the government from having to pay the Canada Emergency Response Benefit (“CERB”) to the employee while paying CEWS to the employer for part of the same four

Eligible remuneration” can include salary, wages, commissions and other remuneration like taxable benefits, but it does not include severance or stock option benefits.-week period. However, it also appears to prevent an employer from claiming CEWS for some new employees initially.

Wage subsidy calculation for different categories of employees

 

After determining what eligible remuneration has been paid to eligible employees, what’s next? The employer needs to then separate those eligible employees into two categories:

  1. Arm’s length eligible employees hired on March 16, 2020 or after, and who were never an employee of the employer at any time between January 1 and March 15, 2020; and
  2. (i) Non-arm’s length eligible employees, or

(ii) arm’s length eligible employees who were employees of the employer at any time between January 1 and March 15, 2020.

Who are non-arm’s length employees? Generally speaking, that is an employee who controls the employer, is related to someone who controls the employer, or who acts in concert with a common interest with the employer.

New arm’s length employees

For arm’s length employees hired on March 16, 2020 or after and who was never an employee of the employer between January 1 and March 15, 2020, the CEWS amount for each week in the Claim Period will be 75% of the eligible remuneration paid to the eligible employee in respect of that week, up to $847 per week.

Non-arm’s length employees must have a “baseline remuneration” in order to be eligible for CEWS. Wages paid to non-arm’s length employees who do not receive regular employment income payments (more specifically, was not paid any salary or wages between January 1 to March 15, 2020) may not qualify for CEWS.

Pre-existing arm’s length employees

For arm’s length employees who were employees of the employer at any time between January 1 and March, 2020, the CEWS amount for each week in the Claim Period will be equal to the least of:

  • 100% of eligible remuneration paid to the eligible employee in respect of that week;
  • 75% of “baseline remuneration” in respect of the eligible employee; and
  • $847

An eligible employee has “baseline remuneration” only if she or he received remuneration from the employer at any time between January 1, 2020 and March 15, 2020. Baseline remuneration is equal to that person’s average weekly eligible remuneration during that period but excluding any period of 7 or more consecutive days for which the employee was not remunerated.

Non-arm’s length employees

The mechanics of the CEWS calculation for non-arm’s length employees is exactly the same as those for pre-existing employees, but it is useful to discuss this category separately. While the baseline remuneration works as a relieving provision for pre-existing employees who had their wage reduced (because it allows CEWS to be calculated on the higher pre-crisis wages), the baseline remuneration standard serves as a policing tool for non-arm’s length employees. It prevents businesses from adding family members as employees or artificially inflating their wages for the sake of obtaining CEWS.

Other adjustments to the CEWS amount

  • The CEWS is reduced by any amounts claimed under the 10% wage subsidy for the same Claim Period;
  • The CEWS is reduced by any amounts received by EI work-sharing benefit received by employees for the same Claim Period; and
  • The CEWS is increased by 100% of the employer-portion of CPP and EI for eligible employees who are “on leave with pay”. The CRA considers an employee to be on leave with pay if that employee is remunerated by the employer but does not perform any work for the employer. This part of the CEWS is not limited by the $847 per week cap, but the employer still has to first make all the required payroll withholding and remittance and then apply for CEWS to get back the employer-portion of CPP and EI.

To protect the integrity of the CEWS program, the Bill included many anti-abuse measures:

  • Eligible remuneration also excludes any amount paid to an employee that exceeds that employee’s baseline remuneration, if it is reasonably expected that after the Claim Period the employee will be paid a lower weekly amount than their baseline remuneration, and one of the main purposes for this arrangement is to increase the employer’s CEWS entitlement.
  • If the employer or a non-arm’s length person enters into a transaction, participates in an event, or takes an action that has the effect of reducing qualifying revenues for March, April or May 2020 (other than choosing between the multi-enterprise rules or choosing between cash vs accrual method as described earlier), and one of the main purposes of such transaction / event / action is to qualify for the revenue decline test, the entire CEWS application of the employer for the Claim Period is denied pursuant to new subsection 125.7(6). Additionally, the employer will be assessed a penalty of 25% of the CEWS applied for pursuant to new subsection 163(2.901).
  • Although not amended by the Bill, existing subsection 239(1.1) of the Act will likely cover an employer making a false or deceptive attestation in the CEWS application. This is a criminal offence potentially resulting in up to 200% of the improper CEWS claim and 2 years of jail for the attestor.
  • Note that the regular general anti-avoidance provision (the GAAR) – under section 245 of the Act – should be also applicable to a misuse or abuse of the CEWS legislation. That is because the GAAR applies to transactions that increases a refund or other amounts under the Act.
  • As if things can’t get more uncertain for a business owner trying to figure the revenue decline test, there is an anti-abuse measure which we will describe below that may deny the entire CEWS claim, with an additional 25% penalty, if the employer takes any action or participates in any transaction or event that has the effect of reducing March to May 2020 revenues.
  • The Bill gives the Minister the power to make public the name of any persons who applied for CEWS, presumably to punish those who the government think did not put the CEWS money to its intended use. This type of “name and shame” with a tax incentive program sets a dangerous precedent

Can I claim both the 10% subsidy and the CEWS?

Yes, but the amount of the 75% CEWS subsidy the employer receives will be reduced by the amount of the 10% subsidy claimed. For timing reasons, we recommend immediate use of the 10% subsidy if you qualify. More specifically, the 10% subsidy is claimed by a reduction in income tax remittance, up to $1,375 per employee and $25,000 for all employees of that business. This can be claimed in the next payroll remittance, whereas the application and the rebate for the 75% CEWS subsidy will likely not be available until May.

How can employers apply for CEWS?

A portal through CRA My Business Account should be developed in the next two to four weeks. Employers should make sure they register for My Business Account and direct deposit with the CRA if they have not already done so in the past.

Temporary Small Business Wage Subsidy

This subsidy-Grant– would be available to eligible employers that see a drop of at least 30% of their revenue and that pay wages to employees.   This grant as of now does not apply to dividends paid by corporations.

Drop in revenue is carried out by comparing the current month’s revenue with the corresponding month in the prior year and then calculating the difference and then the percentage change.

Eligible employers would include the following:

Individuals;

taxable corporations;

partnerships consisting of eligible employers;

non‑profit organizations;

registered charities.

Revenue attributes

Revenue is from its business carried on in Canada, does not include foreign income;

Revenue would exclude items earned from extraordinary items;

Revenue would exclude amounts considered to be on account of capital;

Generally Revenue would exclude amounts  earned from arm’s-length (ie: unrelated)

Sources, however a special rule will apply to employees that do not deal at arm’s length (related) with the employer. The subsidy amount for such employees will be limited to the eligible remuneration paid in any pay period between March 15 and June 6, 2020, up to a maximum benefit of $847 per week or 75 per cent of the employee’s pre-crisis weekly remuneration

 

Revenue would be calculated using the employer’s normal accounting method

 

Eligible Wages would be calculated as the gross calculated amount of wages paid to all employees calculated as the lessor of:

75% of the employee’s average wage before March 15, 2020;

The actual amount paid to the employee during the relevant application period;

$847 per week.

 

 

Canada Emergency Wage Subsidy (CEWS)

To receive this subsidy-grant you have to make a claim monthly.  The claim is currently limited to three periods-months.  The claim can be made for any one or all months.  The claim can be made when you calculated revenue reduction is at least 30%.  The claim periods are as follows along with the period in which you will be making the calculation can make the claim:

 

March 15, 2020 to April 11, 2020            March 2020 compared of March 2019

April 12,,2020  to May 9, 2020                April 2020 compared to April 2019

May 10, 2020 to June 6, 2020                 May 2020 compared to May 2019

 

You can make a claim under the Temporary Small Business Wage Subsidy program and under the Canada

Emergency Wage Subsidy, but not both at the same time.  The choice is your choice.

If you are claiming under the Canada Emergency Wage Subsidy you can not include the remuneration paid to an employee in a week that falls within a period for which you have made a claim under the Temporary Small Business Wage Subsidy program.

 

Revised Employment Insurance

You will have to have been laid-off  after March 15, 2020.  Your previous employer will have to have issued you a separation slip.  The benefit of this program is that your waiting period will be reduced from the normal two week period to being eligible immediately

 

Generally EI is available to individuals who:

-were employed in insurable work activities;

-their employment was terminated through no fault of their own;

-worked the required number of insurable hours (at least 420 hours) during the last period

Before they previously had a claim under EI

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This program consists of an interest free loan up to $ 40,000.00 to help small business cover their

Operation costs.

 

In order to be eligible for this loan you have to be

A small business entity;

Not for Profit entity.

 

 

The qualified entity must have:

Gross payroll of between $50,000.00 and $ 1,000,000.00 in 2019;

 

 

With respect to the repayment of this loan;

-it is interest free until December 31, 2022;

-if the borrower repays three quarters of the total loan prior to December 31, 2022, then

One quarter of the initial loan will be forgiven.