Canadian Emergency Wage Subsidy (CEWS)
- To help prevent further job losses and lay-offs, the Federal government is offering a subsidy of up to 85% of gross wages paid for employers that are experiencing a drop in revenue between March 15th and November 21st.
- The amount available to be claimed for this subsidy depends on the specific pay period it is covering (refer to the table below):
- For periods 1 – 4, employers whose revenue has decreased a minimum of 30% (or just 15% in period 1) can apply for a subsidy of 75% of remuneration paid up to $847 per employee per week
- For employees who earned more prior to the pandemic, employers are able to claim the amount paid, up to a maximum benefit of $847 per week OR 75% of the employee’s pre-crisis weekly remuneration, whichever less
- For periods 5 – 9, employers with any drop in revenue can apply for a subsidy, though the calculation is far more complex! The maximum subsidy declines through these periods as follows:
- Periods 5 and 6: Subsidy up to 85%, max of $960 per week per employee
- Period 7: Subsidy up to 75%, max of $847 per week per employee
- Period 8: Subsidy up to 65%, max of $734 per week per employee
- Period 9: Subsidy up to 45%, max of $508 per week per employee
- All employers who apply for CEWS in periods 1 through 4 must also file form PD27 to declare additional amounts claimed under the Temporary Wage Subsidy (TWS, see below), even if no TWS was or will be claimed
Claim period | Required drop in revenue | Revenue comparison period for eligibility | |
Period 1 | March 15 – April 11 | 15% | March 2020 over:
· March 2019 or · Average of Jan & Feb 2020 |
Period 2 | April 12 – May 9 | 30% | April 2020 over:
· April 2019 or · Average of Jan & Feb 2020 |
Period 3 | May 10 – June 6 | 30% | May 2020 over:
· May 2019 or · Average of Jan & Feb 2020 |
Period 4 | June 7 – July 4 | 30% | June 2020 over:
· June 2019 or · Average of Jan & Feb 2020 |
Period 5 | July 5 – August 1 | > 0% | The greater of:
· June 2020 over June 2019, · July 2020 over July 2019, or · June or July 2020 over the average of Jan & Feb 2020 |
Period 6 | August 2 – 29 | > 0% | The greater of:
· July 2020 over July 2019, · Aug. 2020 over Aug. 2019, or · July or Aug. 2020 over the average of Jan & Feb 2020 |
Period 7 | August 30 – September 26 | > 0% | The greater of:
· Aug. 2020 over Aug. 2019, · Sep. 2020 over Sep. 2019, or · Aug. or Sep. 2020 over the average of Jan & Feb 2020 |
Period 8 | September 27 – October 24 | > 0% | The greater of:
· Sep. 2020 over Sep. 2019, · Oct. 2020 over Oct. 2019, or · Sep. or Oct. 2020 over the average of Jan & Feb 2020 |
Period 9 | October 25 – November 21 | > 0% | The greater of:
· Oct. 2020 over Oct. 2019 · Nov. 2020 over Nov. 2019, or · Oct. or Nov. 2020 over the average of Jan & Feb 2020 |
- Employers are expected to ‘top-up’ employees to pre-crisis wages if possible
- Apply through the CRA My Business Account portal
Temporary Wage Subsidy for Employers
- A reduction of up to 10% of regular payroll remittances for eligible employers between March 18th and June 19th
- Employers withheld payroll remittances from employees like normal, but could then reduce their remittance to CRA by 10% of remuneration paid up to:
- $1,375 for each Canadian employee over the three-month period
- $25,000 for total per employer over the three-month period
- All TWS claimants must file form PD27 in order to have the 10% remittance added to the employer’s CRA payroll remittance (RP) account
- For employers who did not claim TWS by reducing payroll remittances between March 18th and June 19th, it can now be claimed retroactively using form PD27.
- Eligible employers include sole proprietors, partnerships, NPO’s, charities and CCPC’s with an existing payroll account
- Employers can be eligible for both the Temporary Wage Subsidy and the Canadian Emergency Wage Subsidy, but subsidy payments will be reduced dollar for dollar
Canadian Emergency Response Benefit (CERB)
- CERB is now available for those who have earned $1,000 (before taxes) or less during a 4-week period, beginning March 15, 2020.
- Qualified applicants receive a $2,000 taxable benefit for each 4-week period.
- CERB benefits can be claimed for up to 24 weeks between March 15 and October 3.
- The deadline for making retroactive CERB claims is December 2nd, 2020
- To be eligible you must:
- Be a Canadian resident,
- Be at least 15 years old,
- Have earned income of at least $5,000 in 2019, or in the 12 months prior to the date of application (self-employed individuals need $5,000 of revenue)
- Apply by:
- Online application through CRA’s My Account
- Telephone: 1-800-959-2019 or 1-800-959-2041
- We suggest setting up direct deposits to ensure you receive your money as soon as possible. Most banks allow you to set this up using online banking.
- You will need to apply and confirm your eligibility for CERB every 4 weeks, as your situation continues.
The CERB Questions and Answers page is an excellent resource for more detailed information
Employment Insurance
- A Record of Employment (ROE) should be filed for each employee who is laid off or takes unpaid sick leave as a result of Covid-19
- ROE’s can be filed online. Employers are encouraged to sign up for ROE Web immediately, as it can take 7 – 10 days to verify your account
- Paper copies of ROE’s can also be requested but may take longer to arrive by post
- Filling out the ROE – Applicable codes for ‘Reason for Issuing this ROE’:
- A: Shortage of work (if you have had to shut your doors or reduce staff)
- D: Illness or injury (if employee is isolating because of symptoms of Covid-19 or recent travel to a foreign country)
CERB and EI
- Canadians who have lost their job due to Covid-19 should continue to apply for EI
- Those who applied for EI after March 14, 2020 will have their claim processed through CERB automatically
- EI applicants transferred into the CERB program will receive $500 per week, regardless of how much they would have otherwise received through EI
- This “bump” up or down to the CERB benefit rate will happen automatically
Canada Emergency Business Account
- A loan to qualifying businesses of up to $40,000 available through most financial institutions, backed by the Federal Government, with the following unique terms:
- 0% interest in year 1
- Forgiveness of the final $10,000 of principal IF a minimum of $30,000 has been repaid by December 31, 2022.
- To qualify for this loan, businesses must either:
- Be operating in Canada with an existing payroll account, and have 2019 gross payroll between $20,000 and $1,500,000
or
- Have a business bank account with a participating financial institution,
- Have a CRA business account number,
- Have filed a 2018 or 2019 tax return, and
- Have eligible non-deferable expenses between $40,000 and $1,500,000.
We encourage all who think they might qualify to contact their bankers for further details
Canada Emergency Commercial Rent Assistance (CECRA) for Small Businesses
- A subsidy applied for by property owners who have agreed to reduce the rent of eligible tenants by a minimum of 75% for April through June, 2020
- Property owners can apply online to have up to 50% of this covered through the CMHC
- Eligible tenants are those who:
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- Run a small business with no more than $20 million in annual gross revenues,
- Have experienced a reduction in gross revenues of at least 70%, and
- Use the rented area for retail, industrial, or office space
- For those who qualified for the April – June months, you now have the option to extend the assistance through July and August
Support for Students and Recent Graduates Impacted by Covid-19
Canada Emergency Student Benefit (CESB)
For students and new graduates who are not otherwise eligible for CERB or EI, and have not been able to earn over $1000 per month due to Covid-19. Details include:
- $1,250 per month for eligible students, or
- $2,000 per month for eligible students with disabilities or dependents
- Covers May to August 2020 (final applications must be submitted by September 30th)
- Eligible students include those:
- Who were enrolled in an eligible post-secondary program,
- had completed a program in December 2019 or later, or
- have applied for a program that starts before February 1, 2021
- Those who qualify will need to show they have actively looked for work through each claim period.
BC Financial Support in Response to Covid-19
B.C Emergency Benefit for Workers
- A one-time, tax-free, $1,000 payment for B.C residents who have lost income due to Covid-19
- To be eligible you must:
- Have been a resident of BC on March 15, 2020
- Have been approved for CERB
- Be at least 15 years old
- Have not been receiving provincial income assistance or disability
- To apply you will need your social insurance number and direct deposit information
- Apply online or by telephone at 1-855-955-3545 (outside of BC: 1-778-309-4630)
BC Rent Supplement
- Between $300 and $500 per month for low-to-moderate income renters for rent paid from April through August, 2020
- Tenants can apply online through org
- The application deadline is August 31, 2020
- Benefit is paid directly to landlords to supplement the tenants monthly rent
- To be eligible you must:
- Have a 2019 grosshousehold income of less than:
- $74,150 for singles and couples without dependents
- $113,040 for households with dependents
- As a result of COVID-19:
- Be receiving or eligible for Employment Insurance; or
- Have a 2019 grosshousehold income of less than:
-
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- Be receiving or eligible for the Canada Emergency Response Benefit offered by the federal government; or
- Have experienced, and be able to provide evidence of, a drop of 25% or more in monthly household employment income
- Be paying more than 30% of current household income towards rent
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Covid-19 Updates: Provincial Tax and Revenue
B.C has extended filing and payment deadlines for the following taxes until Sept 30, 2020
- Employment Health Tax
- PST
- Carbon Tax
- Motor fuel tax
- Tobacco Tax
These emergency relief programs are being updated regularly. Be sure to check BC’s What’s New page for the latest information.
BC Hydro Covid-19 Relief Fund
This program has now closed, and applications are no longer being accepted. BC Hydro had been offering a credit of up to 3x an individual’s average monthly electricity bill to customers impacted by Covid-19.