11 Mar Update on COVID-19 Relief Developments and Deadlines
CEWS Phase 3 (Periods 11 to 16)
As previously announced, the Canada Emergency Wage Subsidy (CEWS) has been extended to June 5, 2021. The rules for Phase 3 (Periods 11 to 16) are substantially the same as those for Periods 9 and 10, but with some differences, which we explain in this article.
There are also some differences within Phase 3 between Periods 11 to 13 and Periods 14 to 16. The calculation of the revenue decline for Periods 11 to 13 is as follows:
Given that the COVID-19 pandemic’s impact on the Canadian economy will surpass one full year, the CRA has made some changes for Periods 14 to 16 to ensure the general approach continues to calculate an organization’s decline in revenues relative to a pre-pandemic month. This means that the general approach will compare revenues to the corresponding month in 2019, not 2020. Thus, the calculations of the revenue decline for Periods 14 to 16 are as follows:
A major difference for Phase 3 compared to the previous rules is that the calculation of the Top-Up Subsidy is now based on having a greater than 50% revenue decline in the current month versus the previous 3 months. The Base and Top-Up Subsidies for Periods 11 to 16 are calculated as:
The deadline for the CEWS application is 180 days after the end of the last day of the respective period. For example, applications for Period 7 (August 30th to September 26th) will expire on March 25, 2021. There is no ability to apply for an extension to the application deadline.
BC Recovery Benefit
The BC Government released a new benefit of up to $1,000 for eligible families and single parents, and up to $500 for eligible individuals. The benefit is reduced with net income higher than $125,000 (families and single parents) and $62,500 (individuals).
You are required to apply for this benefit by June 30, 2021. For more information, please visit: https://www2.gov.bc.ca/gov/content/economic-recovery/recovery-benefit
Recovery and EI Benefits
The Government has recently announced plans to extend the Canada Recovery Benefit (CRB), Canada Recovery Sickness Benefit (CRSB), Canada Recovery Caregiving Benefit (CRCB), and Employment Insurance (EI) Benefits. The changes were:
- Extend the maximum duration of CRB and the CRCB to 38 weeks (from 26 weeks)
- Extend the CRSB to four weeks (from two weeks)
- Extend EI regular benefits so they are available to a maximum of 50 weeks (from a maximum of 26 weeks), for claims that are made between September 27, 2020 and September 25, 2021
2021 Tax Filing Deadlines
During 2020, most of the filing deadlines for personal, corporate, and other returns were extended. To date, there has been no announcements for any extensions to deadlines for 2021. As of today, the deadline for personal tax returns is April 30th or June 15th.