Week 4 Landscape COVID-19 Updates and Resources
April 6, 2020
Federal Wage Subsidies: A Few Details
- The Canada Emergency Wage Subsidy would apply at a rate of 75 per cent of the first $58,700 normally earned by employees – representing a benefit of up to $847 per week. The program would be in place for a 12-week period, from March 15 to June 6, 2020.
- Eligible employers who suffer a drop in gross revenues of at least 30 per cent in March, April or May, when compared to the same month in 2019, would be able to access the subsidy.
- Eligible employers would include employers of all sizes and across all sectors of the economy, with the exception of public sector entities.
- For non-profit organizations and registered charities similarly affected by a loss of revenue, the government will continue to work with the sector to ensure the definition of revenue is appropriate to their circumstances. The government is also considering additional support for non-profits and charities, particularly those involved in the front line response to COVID-19. Further details will be announced in the near term.
- An eligible employer’s entitlement to this wage subsidy will be based entirely on the salary or wages actually paid to employees. All employers would be expected to at least make best efforts to top up salaries to 100% of the maximum wages covered.
- Those organizations that do not qualify for the Canada Emergency Wage Subsidy may continue to qualify for the previously announced wage subsidy of 10 per cent of remuneration paid from March 18 to before June 20, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
- Eligible employers would be able to access the Canada Emergency Wage Subsidy by applying through a Canada Revenue Agency online portal. More details regarding how to apply for the program will follow
3 Key Steps to take NOW!
Get setup on CRA My Business account if you aren’t already.
Get setup on direct deposit, if you aren’t already.
Get your accounting current and keep it current, will need real time info to evaluate eligibility
This information was prepared by Matt Creechan at KPMG and forwarded by Kimberly Ross Director, National Accounts, Agriculture, Scotiabank
More Federal Financial Assistance for Business
Canada Emergency Business Account (CEBA)
- It’s a $40,000 government‑guaranteed loan to help eligible businesses pay for operating expenses, payroll and other non‑deferrable expenses which are critical to sustain business continuity.
- It’s possible to have 25% of the January 1, 2021 outstanding balance forgiven; in order to do so, the remaining 75% of the loan must be paid in full by December 31, 2022.
- This loan is interest free until January 1, 2023.
- Applications are done online (only) with your primary financial institution.
Attached is more information, which has been forwarded by the Royal Bank. All financial institutions will be operating under the same criteria; application for the loan is to be made to your primary financial institution (the one through which your company processes payroll and receivables.)
Canada Emergency Response Benefit (CERB)
The benefit will be available to workers:
- Residing in Canada, who are at least 15 years old;
- Who have stopped working because of COVID-19 or are eligible for Employment Insurance regular or sickness benefits:
- Who had income of at least $5,000 in 2019 or in the 12 months prior to the date of their application; and
- Who are or expect to be without employment or self-employment income for at least 14 consecutive days in the initial four-week period. For subsequent benefit periods, they expect to have no employment income.
For details and application information click here.
COVID-19 Action Centre
- Login to the CNLA website and check the resources assembled by your national Association.
- General Updates
- Financial Support & Resources
Don’t remember your login information for the CNLA website? Contact Heather at BCLNA for assistance.
How to cope with the impacts of COVID-19 on your business
Strategic Planning for the COVID Economy
Presented by Warren Coughlin
Previously recorded and available here.