I hope this finds you healthy.
We continue to monitor the changes to the support programs available to individuals and businesses. We are here to guide you through the details to determine what is best for you, your company and your staff.
10% Wage Subsidy
You are an eligible employer if you are a(n):
- individual (excluding trusts)
- non-profit organization
- registered charity
- Canadian-controlled private corporation (CCPC) including a cooperative corporation eligible for the small business deduction
- associated CCPCs will not be required to share the maximum subsidy of $25,000 per employer
- have an existing business number and payroll program account with the CRA on March 18, 2020
- pay salary, wages, bonuses, or other remuneration to an eligible employee
The details of how to calculate and limitation per employee and company remain the same.
Canada Emergency Wage Subsidy (CEWS)
Eligible employers includes:
- taxable corporations (small and large)
- partnerships consisting of eligible employers
- non‑profit organizations and registered charities
- those that see a drop of at least 15% of their revenue in March 2020 and 30% for the following months .
Public bodies are not eligible for this subsidy. Public bodies generally include municipalities and local governments, Crown corporations, wholly owned municipal corporations, public universities, colleges, schools and hospitals.
To ensure that the Canada Emergency Response Benefit (CERB) applies as intended, the government is considering implementing an approach to limit duplication. This could include a process to allow individuals rehired by their employer during the same eligibility period to cancel their CERB claim and repay that amount.
Refund for Certain Payroll Contributions – the government has introduced a new 100% refund for certain employer-paid contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan, and the Quebec Parental Insurance Plan. This refund covers 100% of employer-paid contributions for eligible employees for each week throughout which those employees are on leave with pay and for which the employer is eligible to claim for the CEWS for those employees. Employers are required to continue to collect and remit employer and employee contributions to each program as usual. Eligible employers apply for a refund at the same time that they apply for the CEWS.
The three eligibility periods remain the same, however, the reference periods to determine eligibility have been modified to allow year over year comparisons or the average of January and February of 2020. To provide certainty to employers, once an employer is found eligible for a specific period, the employer automatically qualifies for the next period. We have a chart to bring clarity how this is actually applied.
Eligibility for CEWS of an employee's remuneration is available for employees other than those who have been without remuneration for 14 or more consecutive days in the eligibility period. This rule replaces the previous restriction that an employer would not be eligible to claim the CEWS for remuneration paid to an employee in a week that falls within a 4-week period for which the employee is eligible for the CERB.
The same cap on annual salary and resulting weekly benefit remain in place from when the program was introduced.
Canada Emergency Response Benefit
Applications for Period 2 begin Monday April 13. The government is using the same system as they did for period 1 to apply Jan-March April 13 // April-June April 14 // July-Sept April 15 // Oct-Dec April 16 and Friday, Saturday, Sunday anyone can apply.
You still have 2 methods to apply - your MyAccount with CRA for online applications or by phone at 1-800-959-2019 / 1-800-959-2041.
Who can apply - To be eligible, you must meet the following requirements:
- You did not apply for, nor receive, CERB or EI benefits for the same eligibility period
- You did not voluntarily quit your job
- You reside in Canada and are 15 yrs. old or more when you apply
- You earned a minimum of $5,000 income in the last 12 months or in 2019 from one or more of the following sources: employment income, self-employment income or provincial or federal benefits related to maternity or paternity leave
Greg Libbrecht on behalf of the entire team at Platinum Business Services