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 15^th and November 21^st.
• 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

• 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 18^th and June 19^th
• 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 18^th and June 19^th, 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 2^nd, 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:

• • 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 30^th)
• 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

• • • 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

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.