Hello everyone I hope you had as good a weekend as can be expected given the chaotic environment we are having to navigate. This second wave has proven to be extremely difficult both financially and emotionally. The federal government has release the revamped Canada Emergency Rent Subsidy and updated the Canada Emergency Wage Subsidy..
Canada Emergency Rent Subsidy (CERS)
This long awaited revamped program is now available and applications opened Monday November 23, 2020. The program allows eligible organizations to apply directly to the government for the subsidy. To qualify to apply you must have:
- A business number as of Sept 27 2020 or payroll account as of March 15 2020 – or you bought a business with a payroll account
- Are an eligible business, charity or non-profit
- Experienced a revenue drop, there is no minimum required reduction as the system works on a sliding scale. To start, you have a choice to claim year over year or average of Jan and Feb 2020. Actual claim is a % of eligible expenses up to a maximum of $75,000
- This program starts with the 4 week period Sept 27 to Oct 24 as claim period #1 and ending with period #3 the ends on December 19, 2020 at this time. A CERS application must be filed no later than 180 days after the end of a claim period. Period 2 Oct 25 to Nov 21 opens Nov 30 for applications
- If you have not paid the amounts due for your eligible expenses yet, you must attest (confirm) that these amounts will be paid within 60 days of receiving your rent subsidy payment.
Canada Emergency Wage Subsidy (CEWS)
This program has been extended to include Period #10 that ends on December 19, 2020. Period #8 is now open for applications from organizations that are eligible. Period #9 will open for applications on November 30. Below summarizes the last 3 periods of the program:
- The maximum subsidy rate for periods #8 to #10 will remain at 65% (40% base rate + 25% top-up)
- Beginning in period #8, the top-up rate and base rate are now calculated using the same one-month revenue drop. For periods #8 to #10, the system allows us to use the new top-up calculation or the previous 3-month average drop, whichever works in your favour
- The deadline to apply is January 31, 2021, or 180 days after the end of the claim period, whichever comes later.
- Starting in period #9, the calculation for employees on leave with pay now aligns better with EI benefits
Our team has started to collect information to make both the CERS and CEWS claims for all eligible customers we have been working with to date. For everyone else, we are happy to guide you through the process of calculating and applying for the subsidies you are eligible for.
Stay healthy
Greg Libbrecht and the team at Platinum Business Services