This week, there have been a few changes and some extra measures added to multiple Federal Government-aid programs. We would like to keep this information as easy to understand as possible, so we have outlined the changes announced to each program below. Along with the changes outlined, we’ve included a handy link to our blog post(s) fully outlining details on how to apply, and the main things you should be aware of.
Canada Emergency Business Account Update
The Canadian Emergency Business Account will now provide up to $40,000 in government-guaranteed loans to businesses that had payrolls last year between $20,000 and $1.5 million (changed from $50,000 and $1 million). The aim is to help cover their operating costs during a period where their revenues have been temporarily reduced. For full details, please click here.
Canada Emergency Response Benefit Update
The Canada Emergency Response Benefit (CERB) is a sixteen-week federal government program designed to supplement income for those who are unable to work, are sick, quarantined or in self-isolation, and those facing unemployment, providing affected individuals with a $500, taxable, weekly benefit.
CERB has also been expanded to include:
- Individuals who make less than $1000 per month,
- Canadians who have exhausted their employment insurance (EI) benefits since January 1, 2020; and
- Seasonal workers who can’t find work because of COVID-19.
For full details on the program, please click here.
Canada Emergency Wage Subsidy Update
The Canada Emergency Wage Subsidy (CEWS) provides a 75% wage subsidy to eligible employers for up to 12 weeks, retroactive to March 15, 2020. Eligibility would generally be determined by the change in an eligible employer’s monthly revenues, year-over-year, for the calendar month in which the period began. For full details, please click here.
10% Wage Subsidy Program
For those businesses and employers that are not eligible for the 75% Canada Emergency Wage Subsidy, the Federal Government announced a 10% temporary wage subsidy for Employers. This subsidy is a three-month measure that will allow eligible employers to reduce the number of payroll deductions required to be remitted to the Canada Revenue Agency (CRA). The subsidy is equal to 10% of the remuneration you pay from March 18, 2020, to June 19, 2020, up to $1,375 for each eligible employee to a maximum of $25,000 total per employer.
To view eligibility requirements and how to receive the subsidy, follow the link here.