The Canada Emergency Wage Subsidy:
What is it: A 75% wage subsidy paid to the employers for 12 weeks retroactive to March 15 as an incentive to keep and return workers to payroll through the pandemic.
Applications will be processed through your CRA My Business Account in the coming weeks. Guidelines are constantly being updated.
Who can apply:
Individuals and corps that see a drop of at least 30% of their revenue. When applying for this subsidy you must certify that application is true. There will be a task force assigned to verify the legitimacy of these claims with massive penalties assessed to fraudulent cases.
Applications will be made for the months of March, April and May 2020 compared those same months in 2019. You may not be eligible for March, but you could apply for April and May if your revenues drop in those months.
The maximum benefit is $847 per week or 75% of the employee’s pre-crisis earnings, whichever is less.
This subsidy will be eligible for salaries paid to new employees as well. However, if you are a shareholder and you currently are not on payroll, you will not be eligible to receive the subsidy if you suddenly add yourself to payroll.
This benefit does not apply to long term contractors the employer is paying.
Temporary Wage Subsidy for Employers:
This is still available in addition to the 75% wage subsidy. All employers that had a payroll number on march 20 and are Canadian controlled corps are eligible.
Homeroom will calculate this for you. The subsidy amount will get added to your income.
Up to 60% of employee salaries paid for through EI for employees that have their hours reduced, but not laid off. Businesses must show at least a 10% reduction in revenue directly or indirectly due to COVID-19.
PST deferral to Sept 30
Deferral of utility payments for 90 days
WCB deferral of 1st quarter premiums deferred by 3 months
Transfer of tax installments to GST/PST or payroll tax – talk to Homeroom if you have made tax installments and you want to investigate this option further.
New Business credit availability program: The Canada Emergency Business account
Although it is not ideal to have to go into debt to support your business through this pandemic, at this time I would recommend that all business owners apply for the CEBA to ensure you have liquidity for your monthly business obligations such as rent and payroll.
Interest-free business loan for the first $40K borrowed
Guaranteed by the government for the first $40k
Aimed at small businesses and non-profits
Payroll for 2019 needs to be $50k-$1million to be eligible
25% possible loan forgiveness of up to $10K if the other 75% is repaid before Dec 31, 2022
Go to your financial institution to apply
Covered costs: operating costs that you are not able to defer. This will be monitored by your financial institutions