DO YOU KNOW HOW MANY GRANT PROGRAMS ARE AVAILABLE TO YOUR BUSINESS?

This wage subsidy aims to prevent further job losses, encourage employers to re-hire workers previously laid off as a result of COVID-19.

The subsidy covers 75% of an employee’s wages – up to $847 per week – for employers of all sizes and across all sectors who have suffered a drop in gross revenues of at least 15% in March, and 30% in April and May. Eligible employers would include individuals, taxable corporations, and partnerships consisting of eligible employers as well as non‑profit organizations and registered charities.

The program will be in place for a 12-week period, from March 15 to June 6, 2020.

Employers eligible for the CEWS are entitled to receive a 100% refund for certain employer contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan, and the Quebec Parental Insurance Plan paid in respect of employees who are on leave with pay. For employers that are eligible for both the CEWS and the 10% Temporary Wage Subsidy for a period, any benefit from the Temporary 10% Wage Subsidy for remuneration paid in a specific period will generally reduce the amount available to be claimed under the CEWS in that same period.

Eligible employers will be able to apply for the Canada Emergency Wage Subsidy through the Canada Revenue Agency’s My Business Account portal.

Work-Sharing (WS) is an adjustment program designed to help employers and employees avoid layoffs when there is a temporary reduction in the normal level of business activity that is beyond the control of the employer. The measure provides income support to employees eligible for Employment Insurance benefits who work a temporarily reduced work week while their employer recovers.

Due to COVID-19, the program will extend the maximum duration of Work-Sharing agreements from 38 weeks to 76 weeks across Canada for those businesses affected by the downturn in business.

For more information on the Work-Sharing program:

Employers across Canada may call toll-free 1-800-367-5693

The Canada Emergency Business Account will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.

Eligibility requirements:

• A Canadian operating business in operation as of March 1, 2020
• Has a federal tax registration
• Total employment income paid in the 2019 calendar year was between $20,000 and $1,500,000
• Has an active business chequing/operating account with the lending institution, which is its primary financial institution. This account was opened on or prior to March 1, 2020 and was not in arrears on existing borrowing facilities, if applicable, with the Lender by 90 days or more as at March 1, 2020
• Has not previously used the Program and will not apply for support under the Program at any other financial institution.
• The intention is to continue to operate its business or to resume operations.
• Agrees to participate in post-funding surveys conducted by the Government of Canada or any of its agents.

Interested businesses should work with their current financial institutions.

Business Credit Availability Program (BCAP) will help Canadian businesses obtain financing during the current period of significant uncertainty. The BCAP will support access to financing for Canadian businesses in all sectors and regions.

Through this program, Export Development Canada (EDC) and the Business Development Bank of Canada (BDC) will provide $65 billion in direct lending and other types of financial support at market rates to businesses with viable business models whose access to financing would otherwise be restricted. By working in close cooperation with financial institutions, this program will fill gaps in market access and leverage additional lending by private sector institutions

Businesses seeking support through BCAP should contact the financial institutions with whom they have a pre-existing relationship, so that the financial institutions may assess the client’s financial request. If the needs of the client exceed the level of support the financial institution is able to provide, the financial institution will work alongside BDC or EDC to access additional resources the Government has made available under BCAP.

On April 17, the Government annouced expanded eligibility for the Business Credit Availability Program, to help Canadian businesses get the financing they need during this period of uncertainty. The support will be available to medium-sized businesses with larger financing needs, beginning with companies in Canada’s energy sector, to help them maintain operations and keep their employees on the job.

The Temporary 10% Wage Subsidy is a three-month measure that will allow eligible employers to reduce the amount of payroll deduction required to be remitted to the Canada Revenue Agency (CRA).

You are an eligible employer if you:

• are a(n):
  • individual (excluding trusts),
  • partnership.
  • non-profit organization,
  • registered charity, or
  • Canadian-controlled private corporation (including a cooperative corporation) eligible for the small business deduction;
• have an existing business number and payroll program account with the CRA on March 18, 2020; and
• pay salary, wages, bonuses, or other remuneration to an eligible employee.

The Government of Canada is making available $500 million to establish a COVID-19 Emergency Support Fund for Cultural, Heritage and Sport Organizations to help address the financial needs of affected organizations within these sectors so they can continue to support artists and athletes. This measure is consistent with the government’s other existing COVID-19 support measures for wages and fixed costs for organizations.

Eligibility critiera and application details will be posted when they are known.

The Government of Canada will be making available $250 million to assist innovative, early-stage companies that are unable to access existing COVID-19 business support, through the National Research Council of Canada’s Industrial Research Assistance Program (IRAP).

Contact SJE Consulting to leverage our years of experience with successful IRAP applications.

The program will seek to provide loans, including forgivable loans, to commercial property owners who in turn will lower or forgo the rent of small businesses for the months of April (retroactive), May, and June.

Details to come as the government announces them.

The CRA will allow all businesses to defer, until the end of June 2020, any GST/HST payments or remittances that become owing on or after March 27, 2020, and before June 2020. This means that no interest will apply if your payments or remittances are made by the end of June 2020.

All the existing EDC programs are still running, and expect more export-related credit to be available for a wider range of exporting companies.  Contact EDC for details.

The CRA is allowing all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act.

No interest or penalties will accumulate on these amounts during this period. 

Farm Credit Canada is allowing an additional $5 billion in lending capacity to producers, agribusinesses, and food processors. This will offer increased flexibility to farmers who face cashflow issues and to processors who are impacted by lost sales, helping them remain financially strong during this difficult time.

Alberta corporate income tax balances and instalment payments coming due between March 18, 2020 and August 31, 2020 are deferred until August 31, 2020 to increase employers’ access to cash so they can pay employees, address debts and continue operations.

In addition, due dates for the filing of corporate income tax retuens due after March 18, 2020 and before June 1, 2020 have been extended to June 1, 2020.

Small, medium and large private sector employers can defer WCB premium payments until 2021.

For small and medium businesses, the government will cover 50% of the 2020 premium when it is due in 2021 – saving businesses $350 million.

Large employers will have their 2020 WCB premium payments deferred until 2021, at which time their premiums will be due.
Employers who have already paid WCB premiums in 2020 are eligible for a rebate or credit.

The B.C. Emergency Benefit for Workers will provide a one-time $1,000 payment to people who lost income because of COVID-19.

B.C. residents who receive federal Employment Insurance, or the new federal Canada Emergency Response Benefit are eligible.

Applications for the one-time payment will open soon

Effective immediately, B.C. is extending filing and payment deadlines for the following taxes until September 30, 2020:

• Employer Health Tax
• Provincial Sales Tax
• Carbon Tax
• Motor Fuel Tax
• Tobacco Tax

Saskatchewan businesses which are unable to remit their PST due to cashflow concerns will have three-month relief from penalty and interest charges.

Audit program and compliance activities have been suspended to allow businesses time to focus on the health and safety of their customers and staff, reduce impacts to their business operations, and help prevent the spread of the virus through reduced audit travel.

For further details, call the Saskatchewan tax inquiry line at 1-800-667-6102 or email us at SaskTaxInfo@gov.sk.ca

The Saskatchewan WCB is:

• Waiving penalties and interest charges for late premium payments from April 1 until June 30, 2020. This three month period of waived charges is similar to other Boards’ relief measures.
• Forgiving interest and penalties for late payments applied in the month of March.
• Prioritizing employer payroll revisions to help employers reduce their premiums.
• Suspending payroll audits until further notice except in situations where an employer may be eligible for a refund.

Employers that are able to make premium payments are encouraged to do so. Employers who have concerns about paying their 2020 premiums should contact the WCB to discuss their options.

The Self-Isolation Support Program is targeted at Saskatchewan workers forced to self- isolate in order to curb the spread of COVID-19, and who are not covered by recent federally announced employment insurance programs and other supports. Administered by the Ministry of Finance, the program will provide $450 per week, for a maximum of two weeks or $900.

To be eligible, residents of Saskatchewan must meet these criteria:

• They have contracted COVID-19 or are showing symptoms;or
• They have been in contact with an individual infected with COVID-19; or
• They have recently returned from international travel and have been required to self-isolate;

AND

• They are not eligible for compensation including sick leave, vacation leave from their employer;
• They do not have private insurance covering such disruptions;
• They are not covered by other programs such as federal employment insurance that has been updated

Apply on the Saskatchewan Government website here

All Saskatchewan Crown utilities will implement bill-deferral programs allowing a zero-interest bill deferral for up to six months for Saskatchewan customers whose ability to make bill payments may be impacted by the COVID-19 restrictions.

The Canadian Northern Economic Development Agency (CanNor) will make available $15 million in funding to support northern businesses. CanNor works with Northerners and Indigenous peoples, communities, businesses, organizations, federal departments, and other orders of government to help build diversified and dynamic economies that foster long-term sustainability and economic prosperity across the territories.

This support will assist businesses with operating costs not already covered by other Government of Canada measures, and will be available through CanNor.