Tag: Government Programs
In response to COVID-19, the federal government launched three new Canadian benefit programs, including a paid sick leave, for workers. Below is a quick review of the programs, what they cover and how to apply.
There are many programs available to assist businesses during COVID-19. The federal and provincial governments have announced a variety of programs ranging from wage subsidies (see our post on the 10% wage subsidy and the Canada Emergency Wage Subsidy) to emergency benefits to tax filing and payment deferrals (among other things).
The federal government has an interactive tool to help businesses identify the COVID-19 related support available to them. The online tool asks a series of questions to direct you toward the programs and services that are available to your specific business. The tool provides information on the following types of support:
The federal government published more detailed information regarding the Canada Emergency Wage Subsidy (CEWS), and announced that applications for the CEWS will open on April 27, 2020.
Note: The following information is based on the guidance provided by the federal government. For further details see the government’s Frequently Asked Questions.
How much is the Canada Temporary Wage Subsidy (CTWS)?
10% of the wages normally earned by an employee.
The subsidy is equal to 10% of the remuneration you pay from March 18, 2020 to June 19, 2020, up to $1,375 for each eligible employee and to a maximum of $25,000 total per employer.
Ed. Note: Since posting, the CEWS was extended to August 29, 2020. The Government is consulting with business and labour representatives on potential adjustments to the program to incent jobs and growth, including the 30% revenue decline threshold. Further updates will be provided once available.
How much is the Canada Emergency Response Benefit (CERB)?
$2,000 every four weeks. (Note: This is a taxable benefit. That means that you will have to report the CERB as income when you file your taxes for the 2020 tax year.)