Logo Logo Logo Logo Logo Logo
  • Home
  • Who We Are
  • Our Leadership Team
  • Join Team Clearline
  • What We Do
  • Who We Serve
  • Latest News
  • Resources
  • Get in Touch
  • ShareFile Portal
  • Upload Files

20 May COVID-19 Update: CEWS and CEBA

Posted at 12:16h in Latest News by Team Clearline 20 May

The Prime Minister has announced further details regarding the CEWS and CEBA over the past few days.

 

Canada Emergency Wage Subsidy (“CEWS”)

 

The CEWS had previously allowed Employers that experienced a 30% decline in revenue for April and May (15% for March) to claim a 75% wage subsidy paid for eligible employees subject to some other limitations.

 

The Government announced the following changes:

  • CEWS will be extended by 12 additional weeks to August 29, 2020. The Government plans to make some potential adjustments to the revenue decline threshold based on discussions with business and labour representatives to ensure employers continue to receive support in the “post-crisis economic recovery.”
  • Additional employers are now permitted, including:
    • Partnerships consisting of eligible members;
    • Indigenous government-owned businesses;
    • Registered Canadian Amateur Athletic Associations;
    • Registered journalism organizations; and
    • Non-public educational and training institutions.
  • Companies formed by amalgamations or windups will be permitted to calculate their benchmark revenue based on their combined revenues.

 

For more information, please visit: https://www.canada.ca/en/department-finance/news/2020/05/extending-eligibility-for-the-canada-emergency-wage-subsidy.html

 

Canada Emergency Business Account (“CEBA”)

 

The CEBA had previously allowed Employers to apply for a $40,000 partially forgivable interest-free loan. Eligible Employers were previously required to have payroll for the 2019 year of between $20,000 and $1.5 million.

 

The Government announced the following changes:

  • The CEBA program will now be available to sole proprietors, businesses that rely on contractors, and family-owned companies that pay dividends instead of payroll. Applicants with payroll lower than $20,000 would need to meet the follow expanded eligibility criteria:
    • Have a business operating account at a participating financial institution.
    • Have a Canada Revenue Agency business number (GST, Import/Export, or RZ account number) and have filed a 2018 or 2019 tax return.
    • Have eligible non-deferrable expenses of between $40,000 and $1.5 million. Eligible non-deferrable expenses include costs such as rent, property taxes, utilities, and insurance.
  • Expenses will be subject to verification and audit. The list of eligible expenses does not include dividends/distributions to owners as these would probably be considered deferrable.
  • The Government acknowledges that many sole proprietors use their personal bank account or as new businesses have not yet filed a prior year tax return. They are looking at potential solutions for these businesses.
  • Businesses will apply through their financial institutions, but it may take some time for these institutions to update their processes to allow for this expanded eligibility criteria.

 

If you have any questions about the information outlined above, please reach out to our team at we_are@clearlinecpa.ca.

We will continue to keep you updated as things unfold.

 

Tags:
Canada Emergency Business Account, Canada Emergency Wage Subsidy, CEBA, CEWS, COVID-19


logo

Footer

Clarity. Strategy. Confidence.

Danny Sandhu

CPA, Manager

Bio coming soon.

Shehzel Saif

CPA, Tax Manager

As Clearline’s Tax Manager, Shehzel focuses on tax planning, corporate reorganizations and succession and estate planning. She’s passionate about continuous learning and staying up to date on tax legislation changes and helping clients with succession. In addition to her CPA designation, Shehzel also has a Bachelor of Business Administration and has completed the CPA In-Depth Taxation Program. Outside of work, she enjoys spending time with family and friends, traveling and trying out new recipes.

Ameeta Randhawa

HR Manager

As Clearline’s HR Manager, Ameeta supports our firm’s greatest resource—our staff. With a Bachelor of Business Administration in Human Resources and over 7 years of HR experience in various industries, she ensures all employees have a positive experience at Clearline. Ameeta’s focuses include recruitment, performance management, employee relations, program and policy development, and employee engagement. Outside of work, she enjoys traveling and spending time with friends and family.

 

Michael Ng

CPA, CA, Senior Manager

Michael is a Senior Manager in Private Enterprise, carrying out reviews, compilations, and tax services for small- to medium-sized businesses. With a Bachelor of Commerce specializing in finance and a Diploma in Accounting, backed by over a decade of accounting experience, Michael is a trusted advisor who helps clients’ businesses succeed. Outside of the office, Michael enjoys spending time with family, trying out different restaurants in the city, and building and collecting mechanical keyboards.

 

Cindy Ji

CPA, CGA, Manager

Bio coming soon.

Victor K. Yoshida

CPA, CA

Victor was born and raised in Vancouver and obtained his Bachelor of Commerce from the University of British Columbia. He articled with Deloitte & Touche and received his CA designation in 1984. Victor was accepted to the firm’s tax group and went on to complete the Canadian Institute of Chartered Accountants In-Depth Tax course.

 

Victor specializes in Canadian income tax issues for professional and owner-managed businesses. He has extensive experience with business succession, estate planning, wealth preservation issues, corporate reorganizations, as well as mergers and acquisitions.

 

Victor was a member of the education committee of the Institute of Chartered Accountants of British Columbia and has held executive positions with various amateur sport organizations.

In his free time, Victor enjoys training for marathons, travelling, and spending time with his family.

Sign up for Clearline news and insights.

Clarity, strategy and confidence straight to your inbox.

Sign up for Clearline news and insights

ConstantContact