Covid-19 Business Support

2020 Budget Approval Teleconference
April 13, 2020
Reopening Reference Guide (City of SSM)
May 27, 2020

During this trying time for our downtown membership here is a list of business support measures implemented by the government of Canada.

CANADA EMERGENCY WAGE SUBSIDY: subsidy covers 75% of an employee’s wages – up to $847 per week. This is 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.

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

For more information on CEWS: https://www.canada.ca/en/department-finance/economic-response-plan/wage-subsidy.html

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.

You are an eligible employer if you are a(n):

  1. Individual (excluding trusts)
  2. Partnership
  3. Non-profit organization
  4. Registered charity, or Canadian-controlled private corporation (including a cooperative corporation) eligible for the small business deduction;
  5. 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

For more information on the temporary 10% wage subsidy: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html

EXTENDING THE WORK-SHARING PROGRAM: the Government of Canada is extending the maximum duration of the Work-Sharing program from 38 weeks to 76 weeks for employers affected by COVID-19. This measure will provide income support to employees eligible for Employment Insurance who agree to reduce their normal working hours because of developments beyond the control of their employees.

To apply to the Work-Sharing program: https://www.canada.ca/en/employment-social-development/corporate/notices/coronavirus.html#h4.04

TEMPORARY CHANGES TO CANADA SUMMER JOBS PROGRAM: the Government of Canada are making temporary changes to the Canada Summer Jobs program to allow employees to:

  1. Receive an increased wage subsidy, so that private and public sector employers can receive up to 100% of the provincial or territorial minimum hourly wage for each employee.
  2. Extend the end date for employment to February 28, 2021.
  3. Adapt their projects and job activities.
  4. Hire staff on a part-time basis.

For more information about the Canada Summer Jobs program: https://www.canada.ca/en/employment-social-development/services/funding/canada-summer-jobs.html

DEFERRED PAYMENTS: businesses are allowed to defer until after Agust 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 of penalties will accumulate on these amounts during this period.

Tax and payment dates: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/covid-19-filing-payment-dates.html

DEFERRAL OF SALES TAX REMITTANCE AND CUSTOMS DUTY PAYMENTS UNTIL JUNE: businesses and self-employed individuals are allowed to defer until June 30, 2020 payments of the GST/HST, as well as customs duty owing on their imports. Any GST/HST payment that becomes owing from March 27 until the end of May can be deferred until the end of June. For GST and customs duty payments for imported goods, deferral will include amounts owing for March, April, and May.

For more information: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-gst-hst.html

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 temporarily reduced. To qualify, these organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019. Business owners can apply for support from the Canada Emergency Business Account through their banks and credit unions.

For more information regarding the Canada Emergency Business Account: https://www.canada.ca/en/department-finance/programs/financial-sector-policy/business-credit-availability-program.html#a1

CANADA EMERGENCY RESPONSE BENEFIT: a taxable benefit of $2000 a month for up to 4 months to eligible workers who have lost their income due to COVID-19.

Do not apply for CERB if you have already applied for EI.

Apply: https://www.canada.ca/en/services/benefits/ei/cerb-application.html

For complete list of Federal support measures please visit: https://www.canada.ca/en/department-finance/economic-response-plan.html#businesses

Ongoing updates and news pertaining to business support through Sault Ste. Marie Chamber of Commerce: https://www.ssmcoc.com/covid-19-resources

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