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CHARTERED PROFESSIONAL ACCOUNTANT

COVID-19

Government Relief Programs

Updated: April 15, 2020

Filing Due Dates

Individuals

Usual Due Date

April 30, 2020

New Due Date

June 1, 2020

Self-Employed

Usual Due Date

June 15, 2020

New Due Date

June 15, 2020

Corporations

New Due Date

June 1, 2020: For corporations with a usual due date between March 18 and June 1, 2020

Usual Due Date

Six months after year end

Charities

New Due Date

December 31, 2020: Applies to charities with Form T3010 due between March 18, 2020 and December 31, 2020

Usual Due Date

Six months after year end

Payroll Remittance

No Changes

HST

No changes, but CRA, through administrative position, confirmed they wont impose penalties where a return is filed by June 30, 2020

Payment Due Dates

Individuals

Usual Due Date

April 30, 2020

New Due Date

September 1, 2020

Self-Employed

Usual Due Date

June 15, 2020

New Due Date

September 1, 2020

Corporations

New Due Date

September 1, 2020: Applies to balances and installments due between March 18 and September 1, 2020

Usual Due Date

2 months after year end, 3 months if active income.

HST

New Due Date

Pushed to June 30, 2020

Usual Due Date

Depends if quarterly, annually etc.

Payroll Remittance

No Changes

Income tax filing and payment dates

Canada Emergency Response Benefit (CERB)

Who Can Apply

-Over the age of 15

-Earned income from employment, self-employment, government benefits related to parental leave or none eligible dividend of at least $5,000 in 2019 or beginning of 2020

-The worker ceased working for reasons related to COVID-19 for at least 14 consecutive days within the 4 week period of which the application is for

-UPDATE: Individual will be allowed to earn up to $1,000 per month while collecting CERB

When To Apply

If you were born in:

-January, February or March: Monday April 6th

-April, May or June: Tuesday April 7th

-July, August or September: Wednesday April 8th

-October, November, December: Thursday April 9th

No restrictions post April 9th

Other Important Information

Shareholder of corporations can apply as long as all criteria are respected. Expectations would be that the corporation business has been severely impacted by COVID-19.

Payment expectation is 3 days after application if registered for direct deposit, 10 days by mail.

In order to avoid red tape, the government will move forward with the CERB on an honour system, meaning there will be minimal obstacles to obtaining the $2,000 per month. If an individual is deemed to have received the sum and was not entitled to it, they must then reimburse the government without interest.

CERB will replace the EI program during the March 15th to October 3rd period. Individuals already on EI will automatically merge to CERB with no application needed, and their amount will either go down or up to the CERB maximum of $2,000 per month.

How To Apply

A) Online: by logging onto your ‘’my CRA’’ account and then:

1. Go to COVID-19: Canada Emergency Response Benefit in the alert banner at the top of the page

2. Select the period you want to apply for

3. Declare that you qualify for the benefit

4. Confirm we have the right payment information

B) By phone: 1-800-959-2019

What To Expect

-For period between March 15th and October 3rd 2020, the amount will be of $2,000 (single taxable payment) per 4 week period, for a maximum of 16 weeks

-Individual must reapply every 4 weeks to confirm eligibility

Direct Deposit Registration

Application Process

Canada Emergency Wage Subsidy (CEWS) - 75%

Who Can Apply

Taxable corporation, self-employed individual, registered charity, partnership or non-profit organization of all sizes that can show either:

-income decreased by 15% between March 2019 and March 2020, or

-that the average of revenue from January and February 2020 compared to March 2020 has decreased by 15%

This criteria will go up to 30% for the month of April and May of 2020.

-Revenue can either be calculated under the cash method or accrued method.

-Not for profit and charities will have the option to include or exclude government subsidy to show drop in revenue.

The program can also be extended to September 30, 2020.


Subsidy would apply to organizations who have qualifying employees such has:

-Salaried employees (not subcontractors)

-Shareholders who were employees (T4-salary) prior to the crisis would see their wages post crisis eligible for the wage subsidy as well. Same rule for any employee dealing at arm's length with the business.

-Newly hired, and re-hired employees would also see their wages qualify for the subsidy within restrictions. Recommend looking over our graphic for further explanation on eligibility.

What To Expect

-Subsidy of up to 75% of the total salary, excluding CPP and EI, to a maximum of $847 per week per employee, OR 75% of the total salary pre-crisis to a maximum of $847 per week per employee

-Subsidy is fully taxable

-Must still pay CPP and EI on the payroll.Unless the employee is under paid leave, then the subsidy would also cover the employers portion of the CPP, EI, QPP and QPIP.

-Will be in place for 12 weeks starting March 15, 2020

-The government will expect the business to try within reason to top up the other 25%

-Strict penalties will apply to those who try to fix the revenue to qualify.

-CRA has the ability to publish the list of employers who apply for the subsidy.

How/When To Apply

Once it is set up application will be done through the my business account online, it is therefore important to be sure apply for one.

It is expected to take 2-4 weeks for the program to be set up and for the subsidy to be paid out.

If you qualify for one month you will automatically qualify for the second. Example: if you qualify for May, you will automatically qualify for April, and therefore will only need to reapply in May.

Learn more about the Canada Emergency Wage Subsidy

Details of the Canada Emergency Wage Subsidy

Additional Details on the Canada Emergency Wage Subsidy

CEWS Subsidy Decision Tree

Updated April 14, 2020

Please note: The CEWS Subsidy Decision Tree is only a brief summary of our interpretation of how the legislation may work with common situations. A more in-depth analysis would be required before making any decisions.

Download: CEWS Decision Tree.pdf

Temporary Wage Subsidy for Employers 10% Program

Who Can Apply

-Self employed, CCPC (Canadian control private corporation), Not for profits

-You had a payroll account on March 18, 2020

-You are paying employees a salary

-If you don’t qualify for the 75% wage subsidy program

What To Expect

-10% subsidy of the total paid salary during the period of March 18 to June 2020

-To a maximum of $1,375 per employee and $25,000 for the business

How/When To Apply

-Immediate application

-The employer must reduce the total deduction at source it pays to the government by the amount it is entitled to, per employee

-You must continue to pay CPP and EI, if there is not enough deduction to claim the full 10%, then it can be taken in the next period

-If you choose not to reduce your payroll remittance during the year, you can still calculate the subsidy and request payment at the end of the year

Frequently Asked Questions

Canada Emergency Business Account $40,000 Guaranteed Loan

Who Can Apply

-Available for small business and not for profits with a payroll between $20,000 and $1,500,000 in 2019

What To Expect

-Loan of up to $40,000 guaranteed by the government

-No interest for 12 months

-25% can be converted to a forgivable loan if full loan reimbursed by December 31, 2022

How/When To Apply

-Contact your business bank branch to learn of eligibility and application process

-Program should start on April 6, 2020

Additional Support for Canadian Businesses

Other Financing Options

Business Credit Availability Program (BCAP)

-Loan of up to $2,000,000

-Interest rate of variable -1.75% (currently at 3.30%)

-Flexible payment schedule

-Meant for businesses that would have been eligible for a loan prior to COVID-19 crisis

Business Credit Availability Program (BCAP)

-Low interest rate

-Flexible repayment

-EDC and BDC can guarantee loan up to 80%

-Contact your business bank branch to learn of eligibility and application process

Small and Medium-sized Enterprise Loan and Guarantee Program

New Small and Medium-sized Enterprise Loan and Guarantee program

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