CEWS, CERB and what they mean for you
The Government has announced a number of measures aimed at avoiding layoffs, improving access to credit, supporting financial stability, and increasing flexibility with taxes. The government’s official website has a more detailed roundup of these measures. It’s good to remember, as Finance Minister Morneau said, the government is implementing programs in a matter of weeks, that would usually take years to develop, so it may not be perfect from the start.
There are still a lot of questions around the finer details of programs like the Canada Emergency Response Benefit (CERB) and the Canada Emergency Wage Subsidy (CEWS), so please get in touch with us if you have any concerns.
Canada Emergency Wage Subsidy (CEWS)
Some more details:
- Funds for this program will not be available for at least 6 weeks.
- It will be retroactive to March 15th 2020.
- The federal subsidy will pay 75% of employee wages for up to 3 months up to a maximum of $847 per week per employee.
- The 75% subsidy is based on what is actually paid to the employee.
To qualify you must:
- Be a business, charity or not-for-profit.
- Be experiencing a 30% revenue reduction resulting from the COVID-19 pandemic.
- Show you are doing everything you can to pay the 25% top up.
- Apply through the online portal which will be set up in the coming weeks.
- Reapply each month.
More details can be found here.
Until the subsidy is received, businesses may want to use the line of credit offered through the Canada Emergency Business Account (CEBA), but please feel free to chat to us first.
What next? You may want to set up a CRA My Account, but be mindful the website has been overloaded recently.
New info on the Canada Emergency Response Benefit (CERB)
If you have stopped working because of Coronavirus, the CERB may offer you some temporary income support. This provides $500 a week for up to 16 weeks.
Some finer details:
- Payment of $2000 per month, paid monthly
- Starting April 6th 2020
- Payment to be received in 3 business days for direct deposit
- This will be taxable income.
To qualify for CERB, there are some criteria:
- Have stopped working because of COVID-19
- Earned $5000 in income in 2019 or 12 month period prior to application
- Be at least 15 years old
There are answers to frequently asked questions about CERB on the official website.
Please reach out to us if you have a question.