Canada Emergency Wage Subsidy (CEWS)
Changes to CEWS as of November 19, 2020 (Bill C-9):
- The subsidy is extended to June 2021.
- The maximum subsidy rate for periods 8 to 10 will remain at 65% (40% base rate + 25% top-up).
- Beginning in period 8, the top-up rate and base rate are now calculated using the same one-month revenue drop.
- For periods 8 to 10, use the new top-up calculation or the previous 3-month average drop, whichever works in your favor.
- The deadline to apply is January 31, 2021, or 180 days after the end of the claim period, whichever comes later.
- Starting in period 9, the calculation for employees on leave with pay now aligns better with EI benefits.
- You can now calculate pre-crisis pay (baseline remuneration) for employees who were on certain kinds of leave, retroactive to period 5.
- The Canada Emergency Rent Subsidy (CERS) has been introduced for businesses, non-profits, and charities.
Canada Emergency Business Account (CEBA) interest-free loans
- The Canada Emergency Business Account (CEBA) provides interest-free, partially forgivable loans of up to $60,000 to small businesses and not-for-profits that have experienced diminished revenues due to COVID-19 but face ongoing non-deferrable costs such as rent, utilities, insurance, taxes, and wages.
- We have recently expanded CEBA to include an additional interest-free $20,000 loan, 50% of which would be forgivable if repaid by December 31, 2022.
- This means the additional loan effectively increases CEBA loans from the existing $40,000 to $60,000 for eligible businesses, of which a total of $20,000 will be forgiven if the balance of the loan is repaid by December 31, 2022.
- Business owners can apply for support until March 31, 2021, through their banks and credit unions.
Canada Recovery Benefits (CRB)
The CRB provides $500 per week, for up to 26 weeks, for workers who have stopped working or had their income reduced by at least 50% due to COVID-19 and who are not eligible for Employment Insurance (EI).
Canada Recovery Sickness Benefit (CRSB)
The CRSB provides $500 per week for up to a maximum of two weeks, for workers who:
- Are unable to work for at least 50% of the week because they contracted COVID-19.
- Are self-isolated for reasons related to COVID-19.
- Have underlying conditions, are undergoing treatments, or have contracted other sicknesses that, in the opinion of a medical practitioner, nurse practitioner, person in authority, government, or public health authority, would make them more susceptible to COVID-19.
Canada Recovery Caregiving Benefit (CRCB)
The CRCB provides $500 per week, for up to 26 weeks per household for workers:
- Unable to work for at least 50% of the week because they must care for a child under the age of 12 or family member because schools, day-cares, or care facilities are closed due to COVID-19.
- Because the child or family member is sick and/or required to quarantine or is at high risk of serious health implications because of COVID-19.
Click on the following link for more details: https://www.canada.ca/en/department-finance/economic-response-plan.html
JANUARY 4, 2021 BY STILLCPA