Updated: January 4, 2022
There are still subsidies and grants available to individuals and businesses in Canada. The government has also announced new proposed regulatory changes to temporarily expand eligibility for wage and commercial rent support for businesses and other organizations under the Local Lockdown Program.
Employers would continue to need to demonstrate current-month losses only, without the requirement for a historical 12-month revenue decline.
Click here for a listing of what is available to individuals, businesses, the self-employed, and in Ontario. The highlights of those supports available are below. Click here for support specific to businesses located and operating in Toronto.
For each applicable claim period, eligible employers can claim one of the following, whichever gives the highest amount. Many of the eligibility and calculation rules for the wage subsidy under the THRP and the HHBRP are the same as they were for the CEWS.
Tourism and Hospitality Recovery Program [“THRP”] – provides support through wage and rent subsidies to, for example, hotels, tour operators, travel agencies, and restaurants, with a subsidy rate of up to 75 per cent. Eligible types of businesses are detailed here.
Hardest-Hit Business Recovery Program [“HHBRP”] – provides support through wage and rent subsidies to other businesses that have faced deep losses, with a subsidy rate of up to 50 per cent.
Canada Recovery Hiring Program [“CRHP”] – extended until May 7, 2022, for eligible employers with current revenue losses above 10 per cent and increasing the subsidy rate to 50 per cent.
Canada Emergency Rent Subsidy [“CERS”] – extended to May 7, 2022. Also, the monthly cap on expenses will be increased and available to all eligible employers and organizations that meet the new eligibility requirements for the rent subsidy under the Tourism and Hospitality Recovery Program and the Hardest-Hit Business Recovery Program.
Canada Emergency Wage Subsidy [“CEWS”] – extended to May 7, 2022.
Individuals and Self-Employed
Employment Insurance [“EI”] program – Temporary changes have been made to better support Canadians in need.
Canada Worker Lockdown Benefit – The Canada Worker Lockdown Benefit provides $300 a week to eligible workers who are unable to work due to a temporary local lockdown anytime between October 24, 2021 and May 7, 2022. The benefit is only available when a COVID-19 lockdown order is designated for your region.
Canada Recovery Sickness Benefit [“CRB”] – The Canada Recovery Sickness Benefit provides $500 ($450 after taxes withheld) per week for up to a maximum of six weeks, for eligible workers. The CRB has been extended until May 7, 2022, and increased the maximum duration of benefits by 2 weeks. People can apply retroactively to periods between November 21, 2021 and December 11, 2021.
Canada Recovery Caregiving Benefit [“CRCB”] – The Canada Recovery Caregiving Benefit provides $500 ($450 after taxes withheld) for up to 44 weeks per household for eligible workers. The CRCB has been extended until May 7, 2022, and increased the maximum duration of benefits by 2 weeks. People can apply retroactively to periods between November 21, 2021 and December 11, 2021.
Supporting low-income workers and families
The Canada Workers Benefit [“CWB”] provides a refundable tax credit to help people who are working and earning a low income. We are expanding eligibility by increasing the income ceiling to individuals and families.
Mortgage payment deferral
Homeowners facing financial hardship may be eligible for a mortgage payment deferral. To determine eligibility for a mortgage payment deferral or to learn what options are available, contact your lender — your bank or your mortgage professional.
Provincial and territorial support
The new Ontario Business Costs Rebate Program is to support businesses that are most impacted by public health measures in response to the Omicron variant. Eligible businesses will receive rebate payments equivalent to 50% of the property tax and energy costs they incur while they are subject to the current capacity limits. Online applications for this program will open in mid-January 2022. Payments to eligible businesses will be retroactive to December 19, 2021. Businesses will be required to submit property tax and energy bills as part of the application process. If you have questions about the Ontario Business Costs Rebate Program, call 1-866-668-8297 (1-866-ONT-TAXS).
City of Toronto
Retail Accelerator Program provides small retail businesses operating in the city of Toronto with access to training and a micro-grant of $10,000.
For all grants available to Toronto businesses, please click here: https://www.toronto.ca/business-economy/business-operation-growth/business-incentives/toronto-main-street-recovery-and-rebuild-initiative/
Updated: January 20, 2021
Changes to home office expenses for employees
Temporary flat rate method - You are eligible to use this new method if you worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020 due to the COVID-19 pandemic.
- Able to claim $2 for each day you worked from home during that period plus any additional days you worked at home in 2020 due to the COVID-19 pandemic. The maximum you can claim using the new temporary flat rate method is $400 (200 working days) per individual.
Detailed method - You are eligible to claim a deduction for home office expenses for the period you worked from home, if you meet all of the criteria:
- you worked from home in 2020 due to the COVID-19 pandemic oryour employer required you to work from home
- you worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020
- have a completed and signed Form T2200S or Form T2200 from your employer
- the expenses are used directly in your work during the period
To support you, the CRA:
- created a simplified Form T2200S and Form T777S
- created a calculatorto help you claim the home office expense deduction that you are entitled to
- will accept an electronic signature on the Form T2200S and Form T2200 to reduce the necessity for employees and employers to meet in person (applies to the 2020 tax year only)
A comprehensive list of eligible home office expenses has also been created.
Recent Key tax and related changes include the following:
Canada Emergency Wage Subsidy (CEWS) rate increased.
Due to the second wave of the pandemic, the government has increased the maximum CEWS rate to 75 per cent for the period beginning December 20, 2020, until March 13, 2021.
- For periods 11 to 13, the maximum subsidy rate is 75% (40% base rate + 35% top-up)
- Changes to CEWS as of January 6, 2021: details for claim periods 11 to 13 (December 20, 2020, to March 13, 2021):
- the maximum top-up subsidy rate is 35%
- the maximum subsidy amount for employees on leave with pay is $595
- the base revenue drop comparison months for period 11 will be the same as period 10
Canada Emergency Rent Subsidy (CERS) rates maintained.
The government is proposing to maintain the current CERS rates for an additional three periods, from December 20, 2020 to March 13, 2021. The Lockdown Support rate will also be maintained at 25 per cent for the same period.
Update on form T2200 and home office expenses.
The CRA “will allow employees working from home in 2020 due to COVID-19 with modest expenses to claim up to $400, based on the amount of time working from home, without the need to track detailed expenses, and will generally not request that people provide a signed [T2200] form from their employers.”
Canada Emergency Business Account (CEBA) deadline extended.
The previously announced enhancements to CEBA will proceed and the deadline for CEBA loan applications has been extended to March 31, 2021.
- recently expanded to include an additional interest-free $20,000 loan, 50% of which would be forgivable if repaid by December 31, 2022.
Canada Child Benefit payments for young children.
Benefits under the Canada Child Benefit will be increased for families with young children.
Helps small businesses that are required to close or significantly restrict services under the Provincewide Shutdown effective December 26, 2020. Starting at $10,000 for all eligible businesses, the grant provides businesses with funding to a maximum of $20,000 to help cover decreased revenue expected as a result of the Provincewide Shutdown.
Updated: May 25 2020
Supporting Students through Expanded Student and Youth Programming
The government is creating and connecting students to meaningful employment and service opportunities, with:
- "I Want to Help" platform - The new platform will provide helpful information about available service opportunities and ways to get involved and support efforts of young Canadians to pursue service positions.
- $153.7 million for the Youth Employment and Skills Strategy to help youth develop the skills and gain the experience they need to successfully transition into the labour market.
- Changes to the Youth Employment and Skills Strategy's Canada Summer Jobs program, including increased wage subsidies, expanded eligibility and new flexibilities for employers, to ensure it can continue to support up to 70,000 student job placements in 2020-21.
- $80 million for the Student Work Placement Program to support up to 20,000 post-secondary students across Canada to obtain paid work experience related to their field of study.
- $15 million for the Supports for Student Learning Program to serve an additional 14,700 youth through support to complete high school and transition to post-secondary education in order to help ensure that vulnerable children and youth do not become further marginalized as a result of COVID-19.
Enhancing Student Financial Assistance for Fall 2020
To address additional financial needs of students caused by the COVID-19 pandemic, the government proposes to change the Canada Student Loan Program’s eligibility requirements in 2020-21 to allow more students to qualify for supports and be eligible for greater amounts, including doubling the non-repayable Canada Student Grants for full and part time students, as well as for students with disabilities and students with dependents, in the coming academic year.
By announcing this now, the government is providing more financial certainty for students preparing to enter or continue their post-secondary education this fall.
For more information, please visit https://www.canada.ca/en/department-finance/news/2020/04/support-for-students-and-recent-graduates-impacted-by-covid-19.html
Updated: April 25, 2020
Canada Emergency Student Benefit
An announcement has recently been made regarding the new proposed Canada Emergency Student Benefit to be made available to students and graduates.
Who qualifies for the new Canada Emergency Student Benefit (CESB)?
Post-secondary students who are currently in school, are planning to start school in September 2020, or have graduated from school since December 2019 will be eligible for the $1,250/month CESB payment.
If you meet these requirements and are also disabled or a caregiver, you’re eligible for a $1,750 payment.
The benefit will be available from May 1 to the end of August.
How do you apply for the new CESB?
If the legislation is passed, applications will be available online in the coming weeks, and payments will be distributed through the Canada Revenue Agency (CRA).
Students who have already applied for CERB:
The question arising from the announcement of this new benefit - Will I have to give it back and get this instead? According to Trudeau’s announcement Wednesday, no, you don’t have to give your CERB money back.
“Many students are eligible for new programs we’ve brought in over the last few weeks. Many students will get the Canada Emergency Response Benefit. But others won’t,” Trudeau said Wednesday.
In addition, the government has also proposed to change the Canada Student Loan program’s eligibility in 2020-2021 to allow more students to qualify for support as well as be eligible to for larger amounts. This includes:
- Doubling the non-repayable Canada Student Grants for both full and part-time students
- Students with disabilities and dependents
Canada Student Service Grant
Due to the employment limitations, students and youth are being given an opportunity to take part in national service activities that can provide valuable labour market and skills development experiences while giving back to their local communities
The government has proposed launching a new national service initiative to recognize contributions that are made towards the COVID-19 efforts to encourage participation in the COVID-19 response and will offer a new Canada Student Service Grant which will provide up to $5000 to support student’s post-secondary education costs in the fall.
More details will follow in the upcoming weeks.
Updated: April 24, 2020
Canadian Emergency Wage Subsidy (CEWS)
Application for the CEWS opens on April 27, 2020.
As a Canadian employer whose business has been affected by COVID-19, you may be eligible for a subsidy of 75% of employee wages for up to 12 weeks, retroactive from March 15, 2020, to June 6, 2020.
This wage subsidy will enable you to re-hire workers previously laid off as a result of COVID-19, help prevent further job losses, and better position you to resume normal operations following the crisis. (Source: CRA website)
HOW IT WORKS
The CEWS will be generally available to all eligible employers and will amount to 75 percent of the total “eligible remuneration” paid during the “eligible period.”
Eligible employers/entities include individuals, taxable corporations, partnerships consisting of eligible entities, non-profit organizations, and registered charities. Employers of all sizes and across all sectors qualify, except public bodies.
For more information on CEWS, please visit:
Canada Emergency Wage Subsidy (CEWS) tool introduced
The federal government has announced the Canada Emergency Wage Subsidy calculator to support employers as they prepare to apply for the CEWS. The CEWS calculator and other information can be found on the CRA’s Canada Emergency Wage Subsidy page. It outlines who can apply for the subsidy, how eligibility is assessed, and how the subsidy is calculated. The calculator also includes a printable statement feature that employers can use to view their claim at a glance and, as of April 27, 2020, enter required information into the CEWS application form. (Source: CPA Canada)
Canada Emergency Benefit Account (CEBA)
The government of Canada has launched the new CEBA, to ensure that small businesses have access to the capital they need to endure the curent challenges. The $25 billion program provides interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating cossts during a period where their revenue has been reduced due to the impact of COVID-19.
Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).
For more information on CEBA, please visit:
Canada Emergency Commercial Rent Assistance (CECRA)
The federal, provincial and territorial governments have expressed their intent to work together to increase rent support for businesses that are most impacted by the COVID-19 pandemic. The CECRA program will seek to provide loans – including forgivable loans – to commercial property owners who in turn will lower or forgo the rent of small businesses for the months of April (retroactive), May and June. More details to come.
Updated: April 6, 2020
Details of the proposed 75 per cent wage subsidy have been announced
- The Department of Finance has released additional information on the proposed 75 per cent Canada Emergency Wage Subsidy.
- It will be available to a wide group of employers in the event their revenue has decreased by 30 per cent or more.
- For additional details, please follow the link to see the Department of Finance backgrounder.
Please note, the original 10 per cent Temporary Wage Subsidy will continue to be available to employers who don’t qualify for the 75 per cent subsidy.
- The CRA has posted revised deadlines for income taxes list, which can be found here
- Deadlines for GST/HST returns - The CRA has made the following statement - “The deadline for businesses to file their returns is unchanged. Those who are able to, should continue to file their GST/HST returns on time, reporting their net tax for the reporting period to help facilitate tax compliance and administration. However, recognizing the difficult circumstances faced by businesses, the CRA won’t impose penalties where a return is filed late provided that it is filed by June 30th.”
Canada Emergency Response Benefit Act (CERB) -
- replaces previously announced EI programs, ECB and ESB, and is intended to be simpler and more accessible to Canadians. The CERB is a support for workers who have lost income due to reasons related to COVID-19. It is a temporary program that provides $2,000 per month to a maximum of 16 weeks.
- Eligible if:
- work has ceased for at least 14 consecutive days within the four-week application period, due to reasons (include not only a lay-off but, sickness, quarantine, closure of business, taking care of an ill family member or taking care of children due to closure of schools and daycares) related to COVID-19
- Eligible if:
This program applies to wage earners, contract workers and self-employed individuals who would not otherwise be eligible for EI.
*Please make sure to sign up for My Account through the CRA website ahead of time, to apply for the CERB*
To apply over the phone, call: 1-800-959-2019 or 1-800-959-2041
Follow the link below to go to the website and register
As we continue to adjust during these unprecedented times, we will do our best to ensure that you receive the most up-to-date information regarding your situation.
Everyday, we monitor and gather the necessary related information that becomes available and into constitution.
Current key updates:
- On other tax-related payments such as payroll remittances, GST/HST and withholding taxes, we do not expect that payment relief will be announced, as some or all of these amounts relate to amounts withheld or collected from other taxpayers. We understand that there may be misinformation circulating on the source deduction remittances – the CRA has re-confirmed that these payments are not eligible.
- Justin Trudeau has since announced an increase to wage subsidy of 75%, backdated to March 15th. Details are to follow on this subsidy, including whether it will have a capped amount or an end date. Please ensure you contact us prior to use.
Although the course of the pandemic is unknown, know that we will continue to be here for you and do our best to continue to serve your needs.
If you have additional questions or concerns, at this time, our preferred method of contact is through email: firstname.lastname@example.org
Thank you all for your understanding!
Temporary Office Closure Notice
As the COVID-19 pandemic continues to evolve and have an impact in Canada, we want to ensure we are doing our part to keep our clients and staff safe, and to minimize the risk of any possible transmission in the communities where we live and work. We are monitoring the situation closely and are prepared to respond to the rapidly changing nature of this pandemic.
Due to the recent developments, we have temporarily closed our office to the public. In order to continue to deliver services with minimal disruption, we have provided electronic options below to suit your needs:
1. Client Upload (secure)
2. Scan and email your documents to email@example.com
3. Fax to (416) 352-5057
You can contact us via phone or email for any business matters underway. If you have unique requirements or requests we will work with you to find a solution that ensures minimal interruption to the work we are doing for you.
We will take all appropriate measures to continue to provide the services you need, when you need them. You will be notified when our office is once again open to the public.
Please note that even though the April 30 filing deadline for the 2020 tax filing season has been extended to June 1 we are available to prepare your return as soon as all your documents are ready. The deadline to pay off any outstanding balances interest-free will also be extended to July 31, 2020.
We sincerely hope that you, your families and your businesses remain healthy and safe during this crisis. Do not hesitate to call or email us if you have any questions. We appreciate your understanding and flexibility as we continue to serve your needs.
Cathy & Laura Vanderkolff