COVID-19 Canada’s Emergency Response Guide

Has your business been affected by the COVID-19 crisis? Our monthly and catchup accounting and bookkeeping services can help keep your books current, which is a requirement for many of these government assistance program. Schedule a free consultation with our team.

Summary of How to Apply for the Federal Government COVID-19 programs including information on various subsidies and benefits for businesses and individuals.

  • CEWS: The Canada Emergency Wage subsidy. The 75% wage subsidy program. Available to businesses the 10% Temporary Wage Subsidy program
  • CTWS: 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) 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.
  • CERB: The Canada Emergency Response Benefit. The $500 weekly benefit for 16 weeks. Available to employees.
  • CEBA: Canada Emergency Business Account. Through your bank it provides up to $40,000 for small businesses and not-for-profits, interest free with up to $10,000 forgivable.
  • CECRA: Canada Emergency Commercial Rent Assistance. To be provided to Landlords in order to allow them to forgo rent for the period from April to June 2020.

  • CESB: The Canada Emergency Student Benefit (CESB) would provide support to students and new graduates $1,250 per month for eligible students or $1,750 per month for eligible students with dependents or disabilities. This benefit is still working in progress, more details will be made available soon.

  • Canada Emergency Wage Subsidy (CEWS)

    As a Canadian employer whose business has been affected by COVID-19, you may be eligible for a subsidy of 75% of employee wages for up to 12 weeks, retroactive from March 15, 2020, to June 6, 2020 –  to encourage employers to rehire workers previously laid off.

    Most employers, except for certain tax-exempt entities and certain defined public institutions (and partnerships in which such an entity is a direct or indirect member), are eligible for the CEWS if their revenues have declined 15% in March, 30% in April and May 2020, as compared to a prior reference period.

    How to Apply: by clicking on the CRA’s My Business Account Portal.  You will be able to apply for CEWS through the portal, even if you don’t already have a CRA My Business Account by using your online banking login credentials for your online banking provider.

    Beginning April 27, applications will be open for the Canada Emergency Wage Subsidy.

    Additional resources:

    Who is an eligible employer

    Determine your eligible employees

    Calculate your subsidy amount

    How to apply

  • Temporary 10% Wage Subsidy

    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) 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.

    How to Apply:  There is not need to apply for the subsidy. You will continue deducting income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums from salary, wages, bonuses, or other remuneration paid to your employees, as you currently do.

    The subsidy is calculated when you remit these amounts to the CRA. Once you have calculated your subsidy, you can reduce your current payroll remittance of federal, provincial, or territorial income tax that you send to the CRA by the amount of the subsidy.

    Additional resources:

    Visit the CRA for more details.

  • Canada Emergency Business Account (CEBA)

    To ensure that small businesses have access to the capital they need to see them through the current challenges, the Government of Canada has launched the new Canada Emergency Business Account, which has been implemented by eligible financial institutions in cooperation with Export Development Canada (EDC).

    This $25 billion program provides 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, due to the economic impacts of the COVID-19 virus.

    This will better position them to quickly return to providing services to their communities and creating employment.

    Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).

    How to Apply:

    Small businesses and not-for-profits should contact their financial institution to apply for these loans. If you have business banking account at major banks(e.g. RBC, CIBC, TD and etc), you can apply through your online banking.

    Eligibility:

    • The Borrower is a Canadian operating business in operation as of March 1, 2020.
    • The Borrower has a federal tax registration.
    • The Borrower’s total employment income paid in the 2019 calendar year was between Cdn.$20,000 and Cdn.$1,500,000.
    • The Borrower has an active business chequing/operating account with the Lender, 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.
    • The Borrower has not previously used the Program and will not apply for support under the Program at any other financial institution.
    • The Borrower acknowledges its intention to continue to operate its business or to resume operations.
    • The Borrower agrees to participate in post-funding surveys conducted by the Government of Canada or any of its agents.

    Restrictions:

    The funds from this loan shall only be used by the Borrower to pay non-deferrable operating expenses of the Borrower including, without limitation, payroll, rent, utilities, insurance, property tax and regularly scheduled debt service, and may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions and increases in management compensation.

  • Canada Emergency Response Benefit (CERB)

    We will provide a taxable benefit of $2,000 every 4 weeks for up to 16 weeks to eligible workers who have lost their income due to COVID-19.

    The CERB is available to workers who meet all of the following conditions:

    • live in Canada and are at least 15 years old
    • stopped working because of COVID-19 or are eligible for EI regular or sickness benefits
    • have not voluntarily quit their job
    • had income of at least $5,000 in 2019 or in the 12 months prior to the date of their application.

    On April 15, Federal announced changes to the eligibility rules to:

    • Allow people to earn up to $1,000 per month while collecting the CERB.
    • Extend the CERB to seasonal workers who have exhausted their EI regular benefits and are unable to undertake their regular seasonal work because of COVID-19.
    • Extend the CERB to workers who have recently exhausted their EI regular benefits and are unable to find a job because of COVID-19.

    CRA online questionnaire will help your direct you to the service option that best fits your situation (i.e. eligibility for Employment Insurance benefits or not).

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

  • Canada Emergency Student Benefit (CESB) - Working In Progress

    The Canada Emergency Student Benefit (CESB) would provide support to students and new graduates who are not be eligible for the Canada Emergency Response Benefit or Employment Insurance or unable to work due to COVID-19.

    This benefit would provide $1,250 per month for eligible students or $1,750 per month for eligible students with dependents or disabilities.

    This benefit would be available from May to August 2020.

    More details will be made available soon.

Government Resources:

 Federal Government COVID-19 Economic Response Plan

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