To our valued clients,
 
Here is a summary of the recent and updated economic announcements by the federal and provincial governments in response to the COVID-19 outbreak including the following:
 
Canada Emergency Wage Subsidy (CEWS). This program provides a subsidy to employers who retain staff rather than laying them off, and experience a revenue decrease of at least 15% during the month of March and 30% for April and May as compared to the same months in 2019 or comparing March, April, or May 2020 revenues to an average of January and February 2020 revenues. Employers can use either a cash or accrual accounting method. The subsidy will cover 75% of the first $58,700 of regular salary per employee to a maximum of $847 per week per employee and is retroactive to March 15, 2020. The program is effective for 12 weeks from March 15, 2020 to June 6, 2020. Employers are expected to make best efforts to top-up employee’s salaries to 100% during the affected period. Employers can apply for the subsidy using CRA’s My Business Account and the application process went live today. Charitable and Not-For-Profit organizations may include or exclude government money when calculating their loss. The penalty for a business that takes artificial steps to be eligible for the CEWS is a 25% penalty plus repayment of any CEWS received and their name may be publicized. For further details click here.  Employers who are not eligible for the 75% subsidy may still be eligible for the previously announced 10% wage subsidy. For further details on the 10% subsidy click here
 
Canada Emergency Response Benefit (CERB). This taxable benefit would provide $2,000 a month for up to four months for workers who lose their income as a result of the COVID-19 pandemic. The CERB would be a simpler and more accessible combination of the previously announced Emergency Care Benefit and Emergency Support Benefit. The CERB would cover Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The qualification rules were recently relaxed to include individuals earning up to $1,000 per month, seasonal workers and individuals whose regular EI benefits have ended. The CERB would apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI). Individuals can apply through CRA’s My Account or by phone. For further details click here.

Canada Emergency Business Account (CEBA). This program provides loans to small businesses to help them continue to operate during the COVID-19 pandemic. Interest-free, government guaranteed  loans of up to $40,000 will be available and $10,000 of the $40,000 loan is eligible for forgiveness if the remaining $30,000 is fully repaid on or before December 31, 2022. If the loan is not repaid by December 31, 2022, the debt is converted into a three year term loan, with an interest rate of 5%. To be eligible for the loan, a business or not-for-profit must have 2019 annual payroll between $20,000 and $1.5 million. Businesses must apply through the financial institution that holds its primary Business Operating Account. For further details click here.

Canada Emergency Student Benefit (CESB). This program which Runs from May to August provides students with $1,250 a month, or $1,750 a month if they have a disability or are taking care of someone else. Those who will be starting post-secondary studies this fall, are currently pursuing their degrees, or have graduated since December of 2019 are eligible. Students may earn up to $1,000 a month and still receive the benefit. Payments are made through the Canada Revenue Agency (CRA). . For further details click here.

Canada Emergency Commercial Rent Assistance (CECRA). This program, to become operational by mid-May, will lower rent by 75% for small businesses that have been affected by COVID-19, who pay less than $50,000 per month in rent and who have temporarily ceased operations, and who have experienced at least a 70% drop in pre-COVID-19 revenues. This support will also be available to non-profit and charitable organizations. The program will provide forgivable loans to qualifying commercial property owners to cover 50% of three monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May, and June.  The loans will be forgiven if the mortgaged property owner agrees to reduce the eligible small business tenants’ rent by at least 75% for the three corresponding months under a rent forgiveness agreement, which will include a term not to evict the tenant while the agreement is in place. The small business tenant would cover the remainder, up to 25% of the rent. Further details will be announced, but for more information on the current proposed program click here.
 
Ontario Government Acton Plan.
For businesses:
  • temporary increase to the Employer Health Tax (EHT) exemption to $1 million. For further information click here
  • Allowing employers to defer Workplace Safety and Insurance Board (WSIB) payments for up to six months. For further information click here
  • Providing five months of interest and penalty relief for businesses to file and make payments for the majority of provincially administered taxes.
  • Setting electricity prices for small business time-of-use customers at the lowest rate, 24 hours a day for 45 days
For individuals:
  • A one-time payment of $200 per child under 12 years of age and $250 for those with special needs.
  • Setting electricity prices for residential and farm time-of-use customers at the lowest rate, 24 hours a day for 45 days
  • Providing six months of Ontario Student Assistance Program (OSAP) loan and interest accrual relief.
  • Providing emergency child care options for health care workers, police officers, firefighters and correctional officers.
  • Expanding eligibility for the Low-income Energy Assistance Program (LEAP) and ensuring that electricity and natural gas services are not disconnected for nonpayment.
 
Ontario’s 3 stage Plan for Gradual Re-opening of the Economy – announced today – no firm dates.
  • Stage 1: The government will consider: opening select workplaces that can meet current public health guidelines, allowing essential gatherings of a limited number of people, opening some outdoor spaces, continued protections for vulnerable populations
  • Stage 2: The government will consider: opening more workplaces with significant mitigation plans, opening more public spaces, allowing some larger public gatherings, continued protections for vulnerable populations
  • Stage 3: The government will consider: opening all workplaces responsibly, relaxing restrictions on public gatherings, continued protections for vulnerable populations
 
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As an essential service, our office continues to operate under a modified work protocol. We continue to encourage all clients who have not yet submitted their 2019 tax information to provide this to us as soon as it is ready. Although we are not able to meet with clients in person, we continue to communicate by telephone email. Whilst we prefer to exchange documentation via our secure web-portal or by mail/courier/email, we will continue to accept the drop-off of client documentation to our office.   
 
Stay safe everyone !
 
Best regards,