COVID Tidbits

We hope everybody is keeping safe and healthy!

Now that we’ve been in this for a while….. the flow of big updates has slowed down. However, there are still some developments. Some of these are filling in the pieces around funding for specific programmes or sectors. Others are refinements and updates to existing programmes, previously announced.

A couple of small items to draw to your attention:

If you fall between the cracks….

The government’s announced a “mopping up” program that is intended to help businesses that have fallen through the cracks and haven’t been able to get other funding. It’s administered by FedDev, and there’s $250m available to South Ontario.

See http://www.feddevontario.gc.ca/eic/site/723.nsf/eng/h_02581.html?OpenDocument, and also please make sure to click through to the linked page for program guidelines.

We’re pleased to see this – the programs to date have been fairly wide, but we know of several businesses who have not been eligible, due to various quirks in the rules.

Please note – this assumes that you have already applied to everything you are potentially eligible for (and it gives you a helpful list to check). It does not say what happens if you have already applied and are still waiting.

Wage subsidy

Businesses are now applying for the 75% wage subsidy, including the 2nd payroll period. CRA has clearly been hearing from many people about quirks in eligibility, how to apply for the programme, etc., and has updated its list of FAQs.

Here is the most current list. https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-frequently-asked-questions.html

Note that the latest add-ons are referenced as an add-on to an earlier question. We would particularly draw your attention to the following:

• Q 17-2 now clearly states that dividends paid to an owner-manager are NOT eligible compensation and can’t be used to establish baseline comp for the owner-manager. This is directly opposite what was posted against some commentators, notably CFIB.
• Q26-1 and 26-2 discuss how to do the calculations if your payroll cycles don’t line up against the CRA-mandated pay periods. If you’re applying, you’ll probably also have worked out that this is an issue…

And we note that last Friday the PM announced that the wage subsidy will likely extend beyond the initial 3 months. We’ll watch for further announcements…

CERB and other benefits

• More people are on the wrong end of the interaction between CERB and wage subsidy (they’ve claimed CERB, but are now being recalled to payroll, even if still sitting at home). See FAQ #15 in the above for a reminder of this one.
• If you’re a dual citizen…. You may be receiving a cheque from the US government, assuming you’ve filed your 2018 or 2019 US returns. See the following CBC article for information. If you don’t have a US-based bank account, we assume you will still need a US$ bank account to cash the cheque that will eventually arrive. Dual Canadian-US citizens qualify for Trump’s COVID-19 emergency payments