Canada Emergency Wage Subsidy
The Government of Canada has announced that beginning on April 27, 2020, applications will be open for the CEWS, which provides for a subsidy of up to 75% of the pre-crisis wages to a maximum of $847 per week per employee from March 15 to June 6, 2020 . To be ready to apply, businesses should register for the CRA My Business Account and ensure your business details and direct deposit information are up to date.
The CRA has provided a spreadsheet to assist eligible employers in calculating their wage subsidy. This spreadsheet can be found here.
Your KMSS advisor is available for assistance in determining if your business qualifies and to help you calculate the subsidy.
Canada Emergency Business Account (CEBA)
The CEBA program, which provides an interest-free loan of up to $40,000 for small business and not-for-profits, has been expanded to allow for companies that had payroll between $20,000 and $1,500,000 (previously $50,000 to $1,000,000). These funds must be used for non-deferrable operating expenses and debt service and if repaid before December 31, 2022, 25% of the loan will be forgiven. For more information about this program, please see this link or contact your financial institution.
Canadian Emergency Response Benefit (CERB)
The CERB, which allows for a benefit of $2,000 per month for up to 4 months for eligible workers who have lost their income due to COVID-19, has been expanded to allow for individuals to earn some income and still qualify. Previously, earning any income disqualified the individual from the program. Under the revised program, individuals who have not earned more than $1,000 in employment or self-employment income for at least 14 consecutive days in the initial four-week period and for subsequent benefit periods, earned less than $1,000 of employment or self-employment income for the entire 4-week claim will qualify.
Temporary Salary Top-Up for Essential Workers
A temporary top up to salaries of low-income workers (those who earn less than $2,500 per month on a full time basis), that the provinces have deemed essential in the fight against COVID-19 will be available. More details about this program are expected to be released soon.
KMSS has updated our summary of the support available for Alberta small businesses and residents. The most recent information about support measures can be found here.
Your KMSS advisory team is here to assist you and your business. Please note that our office is primarily working remotely and we encourage clients to send us their tax and other financial information electronically. Although our office doors are locked, if you are healthy and would prefer to drop off the information or send it to us by courier, we continue to accept deliveries and couriers on business days between the hours of 9:00am and 4:00pm.