The information on this page has been compiled from many sources that are not all controlled by AIS Solutions. While all reasonable care has been taken in the compilation and publication of the contents of this page, AIS Solutions makes no representations or warranties, whether express or implied, as to the accuracy or suitability of the information or materials contained in this resource.
If you are experiencing a unique situation, or need assistance with understanding how or what you may qualify for,
MARCH 27 - (Updated October 11 )
IMPORTANT UPDATE: Based upon the fine print from many banking institutions, this is NOT a revolving line of credit. If you make a principal repayment prior to December 31, 2020, you cannot access those funds again. Also, the 25% forgiveness is based upon the balance that converts to the term loan as at January 1, 2021. If the full $40K does not convert, you will not receive the maximum $10K loan forgiveness. We recommend that you read the fine print of the Loan agreement you would have received from your institution.
A loan program that was implemented by eligible financial institutions in cooperation with EDC (Export Development Canada). There are 2 Phases to this program:
Phase 1 introduced in March 2020 - The program will provide interest free loans of up to $40,000 to small businesses and not-for-profits, to help cover fixed operating costs (payroll, rent, utilities, property taxes) during a period of reduced revenues. Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25% or up to $10,000.
Phase 2 - Introduced in October 2020 - An Additional $20,000 CEBA loan is being made available to businesses. Of this additional loan balance 50% or up to $10,000 is forgivable if the balance of the loan is repaid by December 31, 2022. Applications will be accepted through eligible institutions as previous.
The original program had payroll requirements in order to be eligible. Eligibility was expanded on June 26th for those businesses without payroll, however the application process for businesses without payroll.
Use of Funds:
Contact your financial institution to determine whether this program is a good fit for your needs.
Contact your financial institution to determine whether this program is a good fit for your needs.
MARCH 19 - (Updated Apr 16)
The application process has moved away from through the BDC links originally provided and are now to be applied through your bank. Contact your bank representative to apply.
If you are concerned about your cashflow in the coming weeks or months, we would highly recommend that you apply for the loan assistance that the government is currently offering for small businesses. It may help alleviate some cashflow issues, as currently, there is no known timeline for how long there will be self-isolation or quarantine requests. We always prefer to err on the side of caution, and would rather have the financial resources and not need them, rather than need them and not be able to get them fast enough. That however, is a business decision that you and your partners must make individually.
The application process is fairly straightforward and would take you about 30 minutes to complete. A couple of things to note on these loans:
Update May 11 : Applications that we have submitted for our clients starting March 19th were starting to be approved and funds received the week of May 11th. If you believe that this is something you may need, our recommendation is to apply sooner rather than later.
ONTARIO ONLY - PART OF THE ONTARIO ACTION RESPONSE PLAN
Support energy affordability for small business, farm, and residential consumers with approximately $5.6 billion towards electricity cost relief programs in 2020-21
No information as yet on how to apply/receive benefits.
APRIL 16 (Updated July 15)
Canada Emergency Commercial Rent Assistance
A program announced to provide Commercial Rent Assistance to businesses. Original program was for April - June rent, extensions for July -September opt in was announced which required no further paperwork, if April - June was applied for.
If you haven't already heard from your landlord, we would recommend reaching out to them, asking them if they will be applying. It is an optional program for landlords, so you want to understand whether you have the potential of receiving any relief.
Communicating with your landlord will be key. Especially if you are not able to meet the 25% balance requirement.
Canada Emergency Rent Subsidy
A program announced to provide Commercial Rent Assistance to businesses. Original CECRA assistance was provided to Landlords which would then be passed on to business tenants. This program is for the tenants directly, while also providing support to property owners..
All details are not yet available until this proposed subsidy passes into legislation
APRIL 8 (Updated Apr 30)
Announced in theory, however unless you were a previous applicant to this program, you cannot benefit as previous deadline for application was February 28
In an effort to assist students who would typically work summer jobs and don't qualify for the CERB, the Federal Government announced some changes to the Canada Summer Job Grant. This measure is meant to encourage businesses to hire students over the coming months
MARCH 19 - (Updated June 20)
Please note - This is one of two Wage Subsidy Programs Available - (see below for the Canada Emergency Wage Subsidy)
THIS PROGRAM IS NOW OVER - HOWEVER IF YOU DID NOT APPLY, YOU CAN CLAIM THE SUBSIDY IF YOU HAD PAYROLL DURING THE PERIOD MARCH 18 - JUNE 19TH)
This is a 10% Wage Subsidy to help small businesses with their payroll requirements. The subsidy benefit is purely for the Employer, to hang onto extra cash flow. Therefore the employees Paycheque and Net Pay are unaffected by this change. They are still required to pay their fair share of Income Tax, CPP and EI. As such, the employer will still be required to match the CPP and EI accordingly.
MARCH 27 - (Updated Oct 11)
This is the second of two wage subsidies available. This has been a continuously moving target and with the new extension plans will become more complicated. If you need assistance with qualification, elections, or calculations, don't hesitate to reach out to us.
This program provides a 75% wage subsidy to eligible employers, retroactive to March 15, 2020. There is no cap on this subsidy and the eligible pay dates are March 15th, 2020 - June 2021
Note: On October 9, 2021 this program was extended to June 2021
It was also announced that a 100% refund will will given for employer-paid contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan and the Quebec Parental Insurance Plan for those employees who are being paid, but not providing any work to the employers.
Calculation Process: For Periods 1 - 4; Periods 5 onwards there are numerous scenarios that we couldn't possibly outline in summary. We have provided the link at the end of this section.
MARCH 19 - (Updated March 24)
Thanks to Andrew D'Abreu for posting this in a Facebook group. We've added some extra lines/commentary :-)
For a spreadsheet to track the subsidy, see below.
From how the language is written, the math could look something like this:
Employee view example:
Employee Gross Wages $1,000
Less Income Tax ($300)
Less CPP ($30)
Less EI ($20)
Employee Net Pay $650
Employer source deductions tax responsibility:
Income Taxes $300
CPP - match $30
EI - match (1.4x 20) - $28
Tax liability $358
Less subsidy (10% x $1000 gross earnings)= ($100)
Adjusted Tax liability to remit - ($358-100)= $258
Given this tax break to the employer, the entry required would be:
Debit - Tax liability $100
Credit - Other Income $100 (this subsidy is confirmed to be taxable)
If you need assistance with this calculation, please reach out.
If you are processing your payroll in house, or not through an outsourced payroll provider, we've created a resource to help you calculate and track the subsidy.
There is still little information about what specifically needs to be tracked for this, or what will need to be reported, so we are erring on the cautious side and tracking subsidy by employee.
The sheet is set up to track 26 Employees and instructions are on the first tab. Here is the link to download the excel version.
You can access the Google Sheet version here.
If you are completing the ROE's on your own, here is a quick guide to the codes to use on the ROE form based upon your circumstance (and if you still aren't sure, reach out to us and we'll help)
MARCH 18- (Updated Apr 3)
You have the ability to defer corporate tax installments until August 31, 2020, with no interest or penalties. It isn't mandatory that you stop making the installments, but if cash is a concern in the coming months, we would certainly recommend it. We would rather that you hang onto your money, just in case :-)
Individual Provinces are rolling out deferral options for premiums related to WSIB/WCB/Worksafe Programs:
Ontario - Deferral of Premiums and Expenses - Schedule 1 employers with premiums owed to the WSIB will be allowed to defer reporting and payments until August 31, 2020
Individual Provinces are rolling out deferral options for premiums related to Employer Health Tax Premiums. There is still little information available on how to receive this assistance, or what is required. Will be updated as more info becomes available.
Ontario - Retroactively reduce the EHT and temporarily increase the exemption from $490,000 to $1 million. Effective January 1,2021 the exemption would return to $490K.
BDC - the Canadian government has set up a $10 Billion fund to assist business in this period. The funds for entrepreneurs are currently being administered through the BDC. -More Info
EDC - The EDC has set up a toll free number number for anyone with any questions relating to exporting as the pandemic and its effects evolve, 1-800-229-0575.
CFIB - Has opened their helpline to all business owners including non-CFIB members for advice on managing COVID-19 situations in the workplace. Call them at 1-888-234-2232.
The Ontario government announced the closure of all non-essential businesses in the province, which will come into effect, March 24th at 11:59 pm, for at least 14 days.
Please click here to view the updated list of essential businesses that are able to remain open.
MARCH 25 - (Updated June 15)
This was announced Mar 25 and replaces the proposed Emergency Care & Emergency Support Benefits announced Mar 18th. This has received Royal Assent.
This is a $2000/month taxable benefit for up to 24 weeks between March 15 and October 3, 2020, for workers who lose their income as a result of COVID-19.
Please make sure that you have direct deposit set up to receive the funds faster. If you login to your personal banking institution, most of them have streamlined the process to set up the direct deposit for CRA.
Qualification Periods: 4 week period cycle
#1 - Mar 15 - Apr 11
#2 - Apr 12 - May 9
#3 - May 10 - Jun 6
#4- Jun 7 - July 4
#5 - Jul 5 - Aug 1
#6 - Aug 2 - Aug 29
#7 - Aug 30 - Sep 26
Please make note of the days that you can apply. (see below)
They have staggered application dates based upon the month of your birth to prevent the website from crashing:
For additional details visit the dedicated pages they have set up
you want to read the whole bill, and are fluent in legalese you can read it here - Bill C-13
Repaying the CERB:
If you have received the CERB in error, you can return the payment. You may have to return the CERB funds you received if:
To return the funds, return the cheque you received or mail a cheque to :
Revenue Processing - Repayment of CERB, Sudbury Tax Centre, 1050 Notre Dame Avenue, Sudbury, ON, P3A 0C1
Make sure the following information is on the repaymentL
MARCH 19 - (Updated Apr 3)
Nothing required by you. You will receive automatically if you qualify:
Please note that if you had an outstanding personal tax balance owing with CRA, the supplemental GST/HST credit would have been applied to that outstanding balance.
MARCH 19 - (Updated Mar 26)
MARCH 18 (Updated Mar 26)
THIS PROGRAM HAS BEEN REPLACED BY CERB LISTED ABOVE AND IS NO LONGER AVAILABLE
The Government introduced the Emergency Care Benefit providing up to $900 bi-weekly, for up to 15 weeks. This flat-payment Benefit would be administered through the CRA and provide income support to:
(Application for the Benefit will be available in April 2020, and require Canadians to attest that they meet the eligibility requirements. Once we receive more details on this program we will share them out.)
MARCH 18 - (Updated Apr 3)
For Canadians who lose their jobs or face reduced hours as a result of COVID’s impact, the Government is:
FOR ALBERTA RESIDENTS ONLY
The Alberta government announced a one time payment to qualifying Albertans to bridge the gap until the Federal Program kicks in.
Here's the link with all of the details - Alberta Emergency Isolation Support
FOR ONTARIO RESIDENTS ONLY
The Ontario Provincial government is working with municipal partners to reduce/defer residential property taxes. Two proposals are on the table
Here's the link with the full details - Ontario Action Plan
Here are the links to apply online for EI depending upon your situation:
Note: The 1 week waiting period can be waived with the sickness benefits application only. Your employee has to call the following number 1-833-381-2725 (toll-free). As of yesterday, it was a 2-3 hour wait on hold. PLEASE make sure that the employee has already filled out the application for EI benefits, or they may be asked to complete it and then call back.
For those employees that have been or are being laid off because of quarantine or self-isolation, I had mentioned that the 1 week waiting period has been waived. Your employees however, do have to call in to have this waiting period waived. The number is 1-833-381-2725 (toll-free).
From what we have heard so far, the expected wait time to be on hold with this number is 2-3 hours. Please make sure that your employees have completed the application for EI benefits, otherwise they will be told to do so and then call back.
Service Ontario Delay of Renewals - Ontario gov't has released notice that renewals of the following are currently not mandatory. (Some renewals are available online)
Until further notice, you will not need to renew these products, even if they have expired:
• health cards
• driver’s licences
• licence plate stickers
• Ontario Photo Cards
• Commercial Vehicle Operator Registration certificates