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Federal Government Update

Updated: Apr 14

Thank you Tri-Cities Chamber of Commerce for sharing the information:

Canada Emergency Wage Subsidy

Details on the eligibility of the wage subsidy that was initially announced on Friday were released today at a press conference.

Eligible Employers:

individual (excluding trusts)

partnerships

non-profits

registered charities

Canadian-controlled private corporation

At Least 30% Revenue Loss:

Compare revenue from the same month of last year for March, April, and May

Must re-apply each month

For businesses that just started up and don't have 2019 data, additional information will be released in the coming days.

Benefit:

Covers the first $58,700 in salary, providing up to $847 per week in subsidy per employee.

Employers who use this subsidy must do everything they can to supplement the remaining 25% of the wages.

Availability:

The portal should be available in the next 3 weeks for application via the CRA portal.

Funds will be available in approximately 6 weeks.

You will have to reapply every month.

Preparation:

Sign up for MyAccount through the CRA

Sign up for direct deposit.

The Canadian Emergency Response Benefit is available in the meantime. The government is hoping that businesses will re-hire staff quickly as the benefit will be backdated to March 15. Anyone who tries to use this subsidy for fraudulent purposes will face a penalty.

Also announced Friday were the following new measures: Interest-Free Loans The new "Canada Emergency Business Account" will provide interest-free loans of up to $40,000 to organizations with total a payroll of $50,000 to $1 million in 2019. Up to $10,000 of that amount will be eligible for complete forgiveness if $30,000 is fully repaid on or before December 31, 2022. GST Remittance and Customs Duties/Tax Remittance of GST to the federal government is being deferred for businesses until June 30, with specific details available for monthly, quarterly or annual filers. Customs duties and sales tax for importers has also been deferred until June 30.

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