Have you applied for the CEBA, CEWS, and TWS?
The CEBA application is due August 31, 2020!
If your business has suffered any decline in revenue, you can now qualify for “CEWS 2.0.”
To aid Canadian employers during COVID-19, the Canada Emergency Business Account (CEBA); the Canada Emergency Wage Subsidy (CEWS); and the Temporary Wage Subsidy (TWS) are programs we encourage everyone who thinks they might qualify to contact us for further details.
CANADA EMERGENCY BUSINESS ACCOUNT (CEBA)
The CEBA provides a $40,000 loan that is interest-free until December 31, 2022, and $10,000 of the principal could be forgiven if a minimum of $30,000 has been repaid by December 31, 2022.
The loan is available to Canadian operating businesses with 2019 gross payroll between $20,000 and $1,500,000, or Canadian operating businesses that have filed a 2018 and 2019 tax return and have eligible non-deferrable expenses – such as rent, property taxes, utilities, and insurance— between $40,000 and $1,500,000
If you think you qualify please contact us or your corporate financial institution to apply for this loan. The deadline to apply is August 31!
CANADA EMERGENCY WAGE SUBSIDY (CEWS)
CEWS for Periods 1 to 4 (March 15 to July 4, 2020)
The CEWS program is a payroll subsidy for employers that suffered a decline in revenue of at least 15% in March 2020, and 30% in any of April, May, and/or June 2020. The revenue decline is based on comparison to the revenue in the same month in 2019 or the average revenue of January and February 2020.
CEWS for Periods 5 and Onwards (after July 5, 2020 – “CEWS 2.0”)
The CEWS program has been extended to at least November 21, 2020, and has moved away from an all-or-nothing approach, so that eligible employers with any decline in revenue will qualify.
The base subsidy will be available to eligible employers that experience any decline in revenue, and the subsidy amount will be dependent on the extent of the revenue decline when comparing the revenue of the reference month to either (1) the revenue of the same month in 2019, or (2) the average revenue for January and February 2020.
A top-up subsidy will be available to eligible employers that experience a decline in revenue exceeding 50% when comparing the average revenue in the preceding 3 months to either (1) the average revenue in the same 3 months in 2019, or (2) the average revenue in January and February 2020.
The reference periods used to compare the revenue decline percentages for both the base subsidy and top-up subsidy must be consistent throughout periods 5 to 9.
CEWS Application
Applications for claim period 5 (July 5 to August 1) will open on August 17, 2020.
Retroactive claims for any of the periods 1 through 4 can be made now.
To proceed with the application, or if you have questions, please contact Andy Li at ali@lohncaulder.com.
10% Temporary Wage Subsidy (TWS)
Most businesses with existing payroll accounts and regular salaries will qualify for the TWS even if they did not meet the revenue decline tests required for the CEWS.
The 10% TWS is a 3-month measure that allows eligible employers to claim a subsidy equal to 10% of the remuneration paid form March 18 to June 19, 2020, up to a maximum of $1,375 for each eligible employee and $25,000 for each eligible employer.
Reporting for the TWS is now available.
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Please visit our Covid-19 resource page on our website:
