The following document is intended to provide an overview of the government programs that may be helpful to you over the next few months. Each of the benefits includes a link to the government of Canada website for a full description of the benefit program. For an overview of all government programs visit Canada’s COVID-19 Economic Response Plan.
As the situation continues to evolve this document will be updated regularly. Please check back to see what has changed.
Canada Emergency Wage Subsidy (CEWS)
Information here: Additional Details on the Canada Emergency Wage Subsidy
This provides a 75-per-cent wage subsidy to eligible employers for up to 12 weeks, retroactive to March 15, 2020.
- Eligible employers would include individuals, taxable corporations, partnerships consisting of eligible employers, non‑profit organizations and registered charities.
- This subsidy would be available to eligible employers that see a drop of at least 15 percent of their revenue in March 2020 and 30 percent for the following months. In applying, employers would be required to attest to the decline in revenue.
- The employer needs to prove that they are doing everything they can to pay the 25% of wages and that they need to apply this subsidy on a monthly basis.
- The government is encouraging all eligible employers to rehire employees as quickly as possible and to apply for the Canada Emergency Wage Subsidy if they are eligible.
- Eligible employers would be able to apply for the CEWS through the Canada Revenue Agency’s My Business Account portal.
- Employers would have to keep records demonstrating their reduction in arm’s-length revenues and remuneration paid to employees.
- More details about the application process will be made available shortly.
Canada Emergency Response Benefit (CERB)
Information here: Apply for Canada Emergency Response Benefit
This provides a taxable benefit of $2000 per month, up to four months.
- For employees and self-employed people who lost their income as a result of the COVID-19 and who would not otherwise be eligible for Employment Insurance.
- For workers who are sick, quarantined or taking care of someone who is sick with COVID-19.
- For working parents who must stay home without pay to care for children because of school and daycare closures.
- Online applications began on April 6, Apply for Canada Emergency Response Benefit
Temporary Wage Subsidy for Employers
For churches using the BIC payroll services this subsidy has already been enacted. You will have received an email from me (Todd Lester) detailing the process with ADP. For church not on BIC payroll services this is available as described belo
The 10% Temporary Wage Subsidy for Employers is a three-month measure that will allow eligible employers to reduce the amount of payroll deductions required to be remitted to the Canada Revenue Agency (CRA).
- Eligible employers are those who have a pre-existing payroll account with CRA and who are non-profit organizations, registered charities and Canadian-controlled private corporations (with a taxable capital under $15 million on an associated group basis).
- The subsidy is received by reducing payroll income tax remittances to CRA.
- For non payroll churches can visit 10% Temporary Wage Subsidy for Employers
Canada Emergency Business Account (CEBA)
Information here: The launch of the Canada Emergency Business Account
Eligible small business and non-profit organizations can get interest-free loans of up to $40,000. If the loan is repaid by December 31, 2022, 25% of it will be forgiven, up to $10,000.
- The program will provide interest-free loans of up to $40,000 for small businesses and not-for-profit companies who had a total payroll of between $50,000 and $1 million in 2019.
- Small business owners can apply for support from the Canada Emergency Business Account through their banks and credit unions.
- Businesses should access the Canada Emergency Business Account through their primary lender, where they have a pre-existing relationship.
- Some banks have enacted the online application and are notifying customers through email.
Information here: Changes to taxes and benefits: CRA and COVID-19
- The filing for T3010 Charity Information returns that are normally due June 30 have been extended to Dec 31, 2020.