We have compiled a list of the main COVID-19 benefits and services being provided by the Federal government and government of British Columbia. Please note that the below information is a summary and is not exhaustive. Changes to these benefits and services are occurring regularly so check back often for the latest updates.
Looking for more information on how these supports and benefits apply to you or your business? Please contact your Clearline representative or email us at we_are@clearlinecpa.ca.
For a complete list of the Federal government COVID-19 benefits and services, please click here.
For a complete list of the government of British Columbia’s COVID-19 benefits and services, please click here.
The CEWS provides a wage subsidy to eligible employers between March 15 to June 2021.
The CEWS Program has different sets of rules depending on the Period. The rules for Periods 1 to 4 (March 15th to July 4th) are referred to as “Phase 1” and the rules for Periods 5 to 10 (July 5th to December 19th) are referred to “Phase 2”. The Government has announced an extension and amendment that will increase the CEWS to 75% for Periods 11 to 13 (December 20, 2020 to May 13, 2021) which can be referred to as “Phase 3”.
Eligible Employers
Eligible Employers (“Employers”) include:
Eligible Remuneration
Eligible Remuneration includes salaries, wages, and some taxable benefits. It does not include severance pay, stock option benefits, and benefits for the personal use of a company vehicle.
Calculating Revenue
Revenue for the purposes of the subsidy would be calculated using the normal accounting method, excluding revenues from extra-ordinary items. Employers have the option of accounting for their revenue on the accrual method or cash method, but not a combination of them. Once the accounting method has been selected, it must be used for the entire duration of the program.
Registered charities and non-profit organizations can choose to include or exclude revenue from government sources as part of their calculation. The same approach must then be used for the entire duration of the program.
Revenue excludes amounts from non-arm’s length transactions where a company is selling to a related company.
Affiliated corporations can test their decrease in gross revenues on a company-to-company basis or elect to compute their decrease in revenue on a consolidated basis.
Companies formed by amalgamations or windups will be permitted to calculate their benchmark revenue based on their combined revenues.
Phase (Periods 1 – 4)
Subsidy Amount
The Subsidy amount for an employee receiving Eligible Remuneration paid between March 15th and July 4th, 2020 will be the greater of:
For employees that do not deal at arm’s length with their Employers (i.e. shareholders and family members), the subsidy is limited to eligible remuneration paid in the pre-crisis period and is only available to those employed prior to March 15, 2020. This prevents shareholders and family members from being added to payroll that may have previously been compensated by dividends.
Any amounts that have been claimed under the Temporary 10% Subsidy and the Work Share Program will reduce the amounts of the CEWS subsidy payment. An Employer is not allowed to “double dip” between the two subsidies.
The reference periods for the Subsidy is as follows:
Period | Claim period | General Approach | Alternative Approach |
Period 1 | March 15 to April 11 | March 2020, 15% decline over March 2019 | March 2020, 15% decline over Average of Jan and Feb 2020 |
Period 2 | April 12 to May 9, 2020 | April 2020, 30% decline over April 2019 | April 2020, 30% decline over Average of Jan and Feb 2020 |
Period 3 | May 10 to June 6, 2020 | May 2020, 30% decline over May 2019 | May 2020, 30% decline over Average of Jan and Feb 2020 |
Period 4 | June 7 to July 4, 2020 | June 2020, 30% decline over June 2019 | June 2020, 30% decline over Average of Jan and Feb 2020 |
If you are eligible for one period, you are then automatically eligible for the subsequent period. For example, if you were eligible for Period 3, the Employer automatically would receive Period 4 as well, even if they experienced an increase in Period 4 revenues.
Refund of Payroll Contributions
Employers that are eligible for the CEWS will be eligible for a 100% refund of certain employer portions of the Employment Insurance and Canada Pension Plan. Where the employee is paid for a specific week but does not perform any work for the employer that week. This is in addition to the maximum benefit of $847 per week. Employers would be required to collect and remit for EI and CPPs as normal, but would receive a refund as part of the CEWS.
Phase 2 (Periods 5 – 10)
Subsidy Amount
The CEWS based on the new rules for Periods 5 to 10 provides for:
This new two-part CEWS would apply to active employees. A safe harbour to ensure that employers have access to a CEWS rate that is at least as generous as the old CEWS rules for Periods 5 and 6.
Base Subsidy
In Periods 5 to 10 the maximum Base Subsidy would be for employers with a revenue drop of 50% of more at a subsidy rate of 60% of the employee’s eligible remuneration. If employers have a revenue drop of less than 50%, then the subsidy rate is decreased. Therefore all Eligible Employers with a revenue decline should qualify.
Below is a table to summarize Periods 5 to 10:
Timing | Period 5*: Jul 5 – Aug 1 |
Period 6*: Aug 2 – Aug 29 |
Period 7: Aug 30 – Sept 26 |
Period 8: Sept 27 – Oct 24 |
Period 9: Oct 25 – Nov 21 |
Period 10: Nov 22 – Dec 19 |
Maximum weekly benefit per employee | Up to $677 | Up to $677 | Up to $565 | Up to $452 | Up to $452 | Up to $452 |
Revenue drop: | ||||||
50% and over | 60% | 60% | 50% | 40% | 40% | 40% |
0% to 49% | 1.2 x revenue drop | 1.2 x revenue drop | 1.0 x revenue drop | 0.8 x revenue drop | 0.8 x revenue drop | 0.8 x revenue drop |
(e.g., 1.2 x 20% revenue drop = 24% base CEWS rate) | (e.g., 1.2 x 20% revenue drop = 24% base CEWS rate) | (e.g., 1.0 x 20% revenue drop = 20% base CEWS rate) | (e.g., 0.8 x 20% revenue drop = 16% base CEWS rate) | (e.g., 0.8 x 20% revenue drop = 16% base CEWS rate) | (e.g., 0.8 x 20% revenue drop = 16% base CEWS rate) |
If you are eligible for one period, you are then automatically eligible for the subsequent period. For example, if you were eligible for Period 3, the Employer automatically would receive Period 4 as well, even if they experienced an increase in Period 4 revenues.
* Employers who would be better off with the previous CEWS rules of a 75% subsidy, may be eligible for the Safe Harbour rules for Period 5 and 6 (see below).
The reference periods for the Base Subsidy is as follows:
Period | Claim period | General Approach | Alternative Approach |
Period 5 | July 5 to August 1, 2020 | July 2020, any decline over July 2019
|
July 2020, any decline over
Average of Jan and Feb 2020 |
Period 6 | August 2 to August 29, 2020 | August 2020, any decline over August 2019 | August 2020, any decline over Average of Jan and Feb 2020 |
Period 7 | August 30 to September 26, 2020 | September 2020, any decline over September 2019 | September 2020, any decline over Average of Jan and Feb 2020 |
Period 8 | September 27 to October 24, 2020 | October 2020, any decline over October 2019 | October 2020, any decline over Average of Jan and Feb 2020 |
Period 9 | October 25 to November 21, 2020 | November 2020, any decline over November 2019 | November 2020, any decline over Average of Jan and Feb 2020 |
Period 10 | November 21 to December 19, 2020 | December 2020, any decline over December 2019 | December 2020, any decline over Average of Jan and Feb 2020 |
Top Up Subsidy
Employers that have experienced a revenue drop of more than 50% on a 3-month average would receive a top-up to a maximum of 25%. The revenue drop is done by comparing the revenues in the preceding 3 months to the same months in the prior year (i.e. April to June 2020 versus April to June 2019). There is an alternative approach to compare the average monthly revenue for the preceding 3 months to the average monthly revenue in January and February 2020.
The top-up subsidy would be calculated as:
3-month average revenue drop | Top-up CEWS rate | Top-up calculation = 1.25 x (3 month revenue drop – 50%) |
70% and over | 25% | 1.25 x (70%-50%) = 25% |
65% | 18.75% | 1.25 x (65%-50%) = 18.75% |
60% | 12.50% | 1.25 x (60%-50%) = 12.5% |
55% | 6.25% | 1.25 x (55%-50%) = 6.25% |
50% and under | 0.00% | 1.25 x (50%-50%) = 0.0% |
The reference periods for the Top-Up Subsidy is as follows:
Period | Claim period | General Approach | Alternative Approach |
Period 5 | July 5 to August 1, 2020 | April to June 2020 over April to June 2019
|
April to June 2020 over Average of Jan and Feb 2020 |
Period 6 | August 2 to August 29, 2020 | May to July 2020 over May to July 2019 | May to July 2020 over Average of Jan and Feb 2020 |
Period 7 | August 30 to September 26, 2020 | June to August 2020 over June to August 2019 | June to August 2020 over Average of Jan and Feb 2020 |
Period 8 | September 27 to October 24, 2020 | July to September 2020 over July to September 2019 | July to September 2020 over Average of Jan and Feb 2020 |
Period 9 | October 25 to November 21, 2020 | August to October 2020 over August to October 2019 | August to October 2020 over Average of Jan and Feb 2020 |
Period 10 | November 21 to December 19, 2020 | September to November 2020 over September to November 2019 | September to November 2020 over Average of Jan and Feb 2020 |
Safe Harbour Rules
For those Employers that would have been eligible for the 75% subsidy based on a revenue decline of 30% or more in Periods 5 and 6 will still be eligible to use the rules that were in place for Periods 1 to 4. Therefore, these Employers should receive the higher of the “old rules” and the “new rules” for Periods 5 and 6.
Phase 3 (Periods 11 to 13)
The Government has proposed, in the Fall Economic Statement 2020, to increase CEWS to 75% for Periods 11 to 12 (December 20, 2020 to March 13, 2021). A summary is as follows:
Timing | Base Subsidy | Top-Up Subsidy |
70% and over | 40% (to a maximum of $452) | 35% |
50 – 69% | 40% (to a maximum of $452) | (Revenue decline – 50%) x 1.75 |
1 – 49% | Revenue decline x .80 | 0% |
The reference periods for Periods 11 to 13 is as follows:
Period | Claim period | General Approach | Alternative Approach |
Period 11 | December 19, 2020 to January 16, 2021 | December 2020, any decline over December 2019
|
December 2020, any decline over Average of Jan and Feb 2020 |
Period 12 | January 17 to February 13, 2021 | January 2021, any decline over January 2020 | January 2021, any decline over Average of Jan and Feb 2020 |
Period 13 | February 14 to March 13, 2021 | February 2021, any decline over February 2020 | February 2021, any decline over Average of Jan and Feb 2020 |
The weekly wage subsidy for a furloughed employee for Periods 11 to 13 will be the lesser of:
In regard to furloughed employees, employers will also continue to be entitled to claim under the wage subsidy their portion of contributions to the Canada Pension Plan (CPP) and Employment Insurance (EI).
NOTE: Legislation for Periods 11 to 13 have not be enacted by Parliament as of December 15, 2020. It is possible that the final legislation can differ than the above.
Application Process
The Canada Revenue Agency (CRA) has started taking applications for the CEWS. There are three ways to apply:
Application Deadline
The deadline to apply for CEWS is the later of:
Taxation of CEWS
The CEWS amounts received are taxable to the Employer. The amount is deemed to be received on the last day of the qualifying Period in which it relates. This essential requires employers to follow the “accrual method” of accounting.
If a tax return was filed before a CEWS application has been made, the tax return would then need to be amended to include this income.
Compliance
The CRA is allowed to publish the names of any Employers that apply for the subsidy.
Employers are required to keep records to demonstrate their reduction in revenue and the remuneration paid to employees.
Employers will be required to repay amounts received if they do not meet the eligibility requirements. Further, Employers that engage in artificial transactions to reduce revenue will be subject to a penalty of 25% of the subsidy claimed.
For more information on the Canada Emergency Wage Subsidy, please visit: https://www.canada.ca/en/department-finance/economic-response-plan/wage-subsidy.html
The Temporary Wage Subsidy exists for those Eligible Employers that do not qualify for the Canada Emergency Wage Subsidy.
The Temporary Subsidy still exists for those Eligible Employers that do not qualify for the Canada Emergency Wage Subsidy.
Eligible Employers include:
The amount of the Temporary Subsidy is 10% of remuneration paid from March 18, 2020 to June 20, 2020, subject to maximums of $1,375 per employee and $25,000 per employer.
This Temporary Subsidy only applies to reduce federal or provincial income (except Quebec) tax withholding. It does not apply to reduce CPP and EI premiums.
Associated CCPCs are not required to share the maximum Temporary Subsidy of $25,000 per employer.
Please note, an Employer is not allowed to “double dip” between the Canadian Emergency Wage Subsidy and the Temporary Wage Amount Subsidy. If you claim the Temporary Subsidy, then you must reduce the amount of the Canadian Emergency Wage Subsidy by the amount claimed by this Temporary Subsidy.
For more information on the 10% Temporary Wage Subsidy, please visit:
The Canada Emergency Business Account (CEBA) will provide interest-free loans of up to $60,000 to small businesses and not-for-profits.
Loan Details
Eligibility
The following businesses are not eligible for the Canada Emergency Business Account:
Use of Funds
CEBA funds shall only be used by the Borrower to pay non-deferrable operating expenses of the Borrower including, without limitation, payroll, rent, utilities, insurance, property tax and regularly scheduled debt service.
Funds are not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions and increases in management compensation.
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.
Application
Small business, sole proprietors and non-profits should apply directly with their bank or credit union.
For more information on the Canada Emergency Business Account, please visit: https://ceba-cuec.ca/
The Canada Emergency Rent Subsidy (CERS) replaced the Canada Emergency Commercial Rent Assistance Program (CECRA). The CERS program provides support directly to tenants and is to apply from September 27, 2020 until June 2021.
Eligible entities include individuals, taxable corporations and trusts, non-profit organizations and registered charities.
Eligibility for the subsidy is based on the change in the eligible entity’s monthly revenue. The calculations are the same as the Canada Emergency Wage Subsidy (CEWS) for Periods 8 to 10 and the proposed Periods 11 to 13. Please refer to the above for those calculations.
Base Subsidy
A summary of the Base Subsidy is as follows:
Timing | Base Subsidy |
70% and over | 65% |
50 – 69% | 40% + (revenue drop – 50%) x 1.25
(e.g. 40% + (60% revenue drop – 50%) x 1.25 = 52.5%) |
1 – 49% | Revenue decline x 0.8
(e.g. 25% revenue drop x 0.8 = 20%) |
The Base Subsidy rate applies to a maximum of $75,000 per location and an overall maximum of $300,000 in expenses for you and affiliated entities per Period.
Top-Up Subsidy
If you must close or cease certain activities at one or more of your locations under a Public Health Order for one week or longer, you may be eligible for lockdown support of up to 25% of eligible expenses per affected location for the days the order was in place.
The Top-Up Subsidy is calculated as 25% multiplied by the number of day that the location was locked down by Public Health Order divided by 28 days.
Lockdown support is calculated on a location-by-location basis. To qualify for lockdown support, you must have:
A public health order must:
Eligible expenses include commercial rent, property taxes, property insurance, and interest on commercial mortgages.
Applications for CERS must be made on or before 180 days after the end of the qualifying period.
For more information please visit: https://www.canada.ca/en/department-finance/news/2020/11/canada-emergency-rent-subsidy.html
The Federal Government announced the details of the Canada Emergency Commercial Rent Assistance (“CECRA”):
The Canada United Small Business Relief Fund (CUSBRF) is providing eligible businesses up to $5,000 to help reimburse costs incurred after March 15, 2020 because of COVID-19.
There are three categories of purchases which are eligible for reimbursement under this program:
This grant is available to both For-Profit and Not-For-Profit organizations. Government organizations, municipalities, charities, and the chamber of commerce network are not eligible to apply.
Applicants must meet certain requirements such as:
The CUSBRF is being managed by the Ontario Chamber of Commerce, but is open to all eligible organizations across Canada. For more information, including the complete list of requirements and a link to the application form, please visit: https://occ.ca/wp-content/uploads/Canada-United-Program-Guidelines-EN.pdf
Note: Applications are closed for businesses located in B.C.
Small to Medium Sized Business Recovery Grant
The Province of British Columbia is providing eligible businesses between $10,000 to $30,000 depending on their revenue loss as a result of COVID-19. An additional $5,000 to $10,000 may be available for certain tourism-related businesses.
Applicants must meet certain requirements such as:
The grants are available until March 31, 2021 or until the reserved funds (up to $300 million) are fully distributed.
For more information, including the complete list of requirements and a link to the application form, please visit: https://www2.gov.bc.ca/gov/content/economic-recovery/business-recovery-grant
The Government of B.C. has announced a number of provincial services, including tax payment deferrals, delays and reductions.
The following provincial taxes have been deferred, delayed or reduced:
Tax Payments
The BC Government has deferred the following tax payments for business until September 30, 2020:
School Tax
BC’s COVID-19 Action Plan originally announced that the School Property Tax rates for commercial properties (Class 4, 5, and 6) will be reduced by 50% for the 2020 year. The BC Government announced a further reduction of the School Property Tax and introduced an equivalent for Class 7 and 8 properties. This will reduce the overall commercial property taxes for most business by up to 25% for the 2020 year.
Further, the BC Government postponed the date that late payment penalties apply for commercial properties for Classes, 4, 5, 6, 7, and 9 to October 31, 2020. This will give businesses and landlords more time to pay their reduced property tax without penalties.
For more information on the B.C. provincial tax relief measures for businesses in B.C., please visit: https://www2.gov.bc.ca/gov/content/taxes/tax-changes/covid-19-tax-changes
The government has announced a number of changes to business taxes, GST/HST and duty payments.
Businesses can defer the payment of any income tax amounts that become owing on or after March 18 and before October 2020 until September 30, 2020. This relief would apply to tax balances due, as well as installments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period. Corporations that would otherwise have a filing deadline in June, July or August 2020 are now due by September 30, 2020.
Businesses, including self-employed individuals, can defer payments of the GST/HST and customs duty until June 30, 2020. No interest or penalties will accumulate on these amounts during this period. The deadline to file GST returns has not changed.
For more information about income tax payment dates, please visit: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/covid-19-filing-payment-dates.html
For more information on the deferral of GST/HST tax remittances, please visit: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-gst-hst.html
The Government announced changes to the Canada Summer Jobs program.
Businesses can get a 100% subsidy (formerly 50%) of the minimum wage paid for student workers under the Canada Summer Jobs program. Further, the program will now be extended to February 2021. The Government is considering on whether the application process will be reopened to allow new employers to apply.
Effective December 6, 2020, the GST will be reduced to 0% on certain face masks (medical and non-medical) and face shields.
Foreign based vendors that sell digital products to Canadians will be required to register for, collect, and remit GST/HST on the taxable sales to Canadians effective July 1, 2021. This will include video and music streaming, online video gaming, and mobile apps.
Foreign based vendors will be required to charge GST/HST on sales to Canadians for goods that are sold using Canadian fulfillment warehouses. This will also be effective July 1, 2021.
Platforms will be required to charge GST/HST on sales using platform-based short-term rental accommodations supplied in Canada. This will also be effective July 1, 2021.
The CERB provides financial support to employed and self-employed Canadians who are directly affected by COVID-19.
It provides a payment of $2,000 for a 4-week period (the same as $500 a week) for up to 24 weeks.
Eligibility Criteria
To be eligible, you must meet the following requirements:
You did not apply for, nor receive, CERB or EI benefits from Service Canada for the same eligibility period
You have not quit your job voluntarily
You reside in Canada
You are 15 years old or more when you apply
You earned a minimum of $5,000 income in the last 12 months or in 2019 from one or more of the following sources:
employment income
self-employment income
provincial or federal benefits related to maternity or paternity leave
You can earn up to $1,000 per month while collecting the CERB.
The CERB has been extended to seasonal workers who have exhausted their EI regular benefits and are unable to undertake their regular seasonal work because of COVID-19.
The CERB has been extended to workers who have recently exhausted their EI regular benefits and are unable to find a job because of COVID-19.
Application
There are two ways to apply:
Online with CRA My Account: https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html
Over the phone with an automated phone service: 1-800-959-2019
After you apply, you should get your payment in 3 business days if you signed up for direct deposit. If you haven’t, you should get it in about 10 business days.
For more information on eligibility and how to apply, please visit: https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra.html
Employees working from home in 2020 due to COVID-19 will be allowed to claim expenses up to $400, based on the amount of time working from home, without the need to track detailed expenses. Nor will they be required to have a signed Form T2200.
The Government announced a temporary support totaling up to $1,200 in 2021 for each child under the age of 6 for families who are entitled to the Canada Child Benefit (CCB).
Families with net income at or below $120,000 will receive four tax-free payments of $300 per child under the age of 6 years. Families entitled to CCB with net income above $120,000 will receive four tax-free payments of $150 per child under the age of 6 years. These payments will start shortly after legislation is approved, then in April, July, and October 2021.
Further to comments in previous budgets, the Government has proposed the following changes to employment stock option rules:
The Government of Canada is providing up to an extra $300 per child through the Canada Child Benefit (CCB) for 2019-20. This automatic benefit will be delivered as part of the scheduled CCB payment in May. Those who already receive the CCB do not need to re-apply.
For more information on the Canada Child Benefit please visit: https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview/canada-child-benefit-apply.html
The Federal Government announced updates to the tax deadlines for Canadians.
The Federal Government announced the following measures in regards to the tax deadlines for Canadians.
The tax filing deadlines have been extended:
Tax payments and installments have been extended:
Note: There will be no penalties or interest charged on any payments not made during that period.
If you are a personal tax client, please submit your personal tax information as soon as possible. You can find our 2019 Personal Tax Checklist here. We encourage you to get your information in to us now and choose to interact with our team using our online tools.
The B.C. Emergency Benefit for Workers will provide a one-time $1,000 payment to people whose ability to work has been affected due to COVID-19.
To be eligible for the BC Emergency Benefit, you must:
On-line applications for the one-time payment will begin on May 1st. Phone applications start on May 4th.
Benefits will only be paid by direct deposit.
For more information on the B.C. Emergency Benefit for Workers, please visit: https://www2.gov.bc.ca/gov/content/employment-business/covid-19-financial-supports/emergency-benefit-workers
BC Hydro
ICBC
Effective December 6, 2020, the GST will be reduced to 0% on certain face masks (medical and non-medical) and face shields.
Foreign based vendors that sell digital products to Canadians will be required to register for, collect, and remit GST/HST on the taxable sales to Canadians effective July 1, 2021. This will include video and music streaming, online video gaming, and mobile apps.
Foreign based vendors will be required to charge GST/HST on sales to Canadians for goods that are sold using Canadian fulfillment warehouses. This will also be effective July 1, 2021.
Platforms will be required to charge GST/HST on sales using platform-based short-term rental accommodations supplied in Canada. This will also be effective July 1, 2021.
Bio coming soon.
Bio coming soon.
Jason was born in Korea, moved to Canada in 2007 and joined Clearline in October of 2019.
In 2013, Jason attended UBC, majoring in Asian Area Studies with a minor in International Relations. After developing a passion for business, Jason earned his Diploma in Accounting in 2020.
In his free time, Jason can be found writing songs and hanging out with friends.
Grishma joined Clearline in October 2019, after working for seven years as an accounting assistant in a small accounting firm. She holds a Bachelor of Business Studies degree from the University in Nepal where she grew up. Currently, she is enrolled in Post Degree Diploma in Accounting at Douglas College.
Outside of the office, Grishma loves dancing and participating in cultural dance programs. She also enjoys watching movies and spending outdoor in the summer with family and friends.
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