CoronaVirus
COVID -19
Government Support & Updates
In light of the unprecedented steps taken by our governments to try and control the spread of COVID-19, many Albertans are faced with significant disruption and economic uncertainty. The Alberta and Canadian governments have outlined certain assistance initiatives and programs that individuals and business owners can access to address some of these concerns.
We are fully committed to helping our clients navigate and adapt to the challenging times around COVID-19. Stay up-to-date on the latest measures the Federal and Alberta Governments are taking to help individuals and businesses. Check this page regularly for updates as the situation evolves.
Alberta Government
Guidance For Reopening Your Business
The Alberta government has provided guidance and support to assist businesses reopening to ensure the continued slow the spread for business' such as hair salons, restaurants, day cares and places of worship. You can also find information on guidance for relaunch during each stage of reopening, safety measures for employees and customers, and answers to common questions. Find them on: Alberta Biz Connect.
Alberta Small and Medium Enterprise Relaunch Grant
This grant from the Alberta government provides a one-time payment of up to $5,000 to small and medium sized businesses, societies or non-profits who had to close, or had their business curtailed, due to a public health order regarding COVID-19. Affected businesses must demonstrate at least a 40% loss in revenues during either April or May 2020, compared to April or May 2019 or February 2020. The grant will be for 15% of the revenue during April 2019, May 2019 or February 2020, to a maximum of $5,000.
Applications will be open until March 31, 2021 unless otherwise communicated. For information on the grant, eligibility, and to find an online guide for applications go to: https://www.alberta.ca/sme-relaunch-grant.aspx
Workers Compensation Board
The Government of Alberta is also offering employers relief for Workers Compensation Board premiums, and has outlined various rules and policies surrounding those employees who must be in self-isolation or quarantine and the options of their employers. Details are found online here: https://www.wcb.ab.ca/about-wcb/news-and-announcements/COVID-19.html
Government of Canada
New Recovery Benefits
The Canada Emergency Response Benefit (CERB) was closed on September 26, 2020. The CERB program transitions into the New Recovery Benefits program and is available between September 27, 2020 and September 25, 2021.
The Canada Recovery Benefit will provide;
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Support for eligible workers with $500 per week for up to 26 weeks.
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Payments will be taxable and tax will be deducted at the source.
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Available for those who have stopped working and who are not eligible for EI.
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Available for those who have had their employment/self-employment income reduced by at least 50% due to COVID-19.
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This benefit will be paid in two-week periods.
The Canada Recovery Caregiving Benefit will provide;
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Support of $500 per week for up to 26 weeks per household.
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Payments will be taxable and tax will be deducted at the source.
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Available for workers unable to work for at least 50% of the week because they must care for a child under the age of 12 or family member because schools, day-cares or care facilities are closed due to COVID-19.
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Available for workers unable to work for at least 50% of the week because a child or family member is sick and/or required to quarantine or is at high risk of serious health implications because of COVID-19.
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This benefit will be paid in one-week periods.
The Canada Recovery Sickness Benefit will provide;
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Support of $500 per week for up to a maximum of two weeks.
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Payments will be taxable and tax will be deducted at the source.
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Available for workers who are unable to work for at least 50% of the week because they;
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Have contracted COVID-19, self-isolated for reasons related to COVID-19.
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Have underlying conditions, are undergoing treatments.
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Have contracted other sicknesses that, in the opinion of a medical practitioner, nurse practitioner, person in authority, government or public health authority, would make them more susceptible to COVID-19.
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This benefit will be paid in one-week periods.
Both the CERB and Canada Recovery Benefits are taxable;
At the end of the year, the Canada Revenue Agency will calculate the amount of tax you owe based on your total income including both the amounts received for the Canada Emergency Response Benefit and the Canada Recovery Benefit.
There will be a clawback for the Canada Recovery Benefit, and you will be required to repay $0.50 of the Benefit for every dollar in net income you earn above $38,000 (excluding the amount received for the Canada Recovery Benefit) to a maximum repayment of the Canada Recovery Benefit received in the year. Amounts repaid will not be included in your taxable income. This will be reconciled on your T1 tax return and the repayment will be incorporated in your total payable.
Further information on the changes to the Employment Insurance (EI) and New Recovery Benefits can be found at: https://www.canada.ca/en/services/benefits/ei/cerb-application/transition/questions.html
Canada Emergency Wage Subsidy (CEWS) - Update October 2020
On October 14, the government announced the extended Canada Emergency Wage Subsidy (CEWS) program, which extends the current CEWS to June 2021. The intention is to provide more assistance to businesses and workers who are suffering from the pandemic.
There will be a freeze to the base subsidy at Period 8 (September 27 to October 24) level with a maximum weekly subsidy of $734 per employee. This freeze will apply from Period 8 to Period 10 (September 27 to December 19, 2020). The top-up subsidy calculation will also be harmonized with the base subsidy calculation from Period 8 onwards. The new top-up subsidy revenue decline test will be the same as the base subsidy, rather than using the current three-month revenue decline test.
A "safe harbour" was also announced to ensure that employers will receive the top-up subsidy at no less than they would have received under the current three-month revenue decline test if the new change leads to a favourable result.
The separate weekly subsidy rate for a furloughed employee is also confirmed to be the greater of $500 or 55% of the pre-crisis wage up to a maximum of $573 per employee.
Further information on the extended Emergency Wage Subsidy, including eligibility requirements and the application process, can be found online here: https://www.canada.ca/en/department-finance/news/2020/10/extending-the-canada-emergency-wage-subsidy.html
Canada Emergency Business Account (CEBA) - Update October 2020
The Government of Canada launched CEBA to support small businesses for their expenses that cannot be avoided or deferred. CEBA provides a $40,000 interest-free loan, with potentially $10,000 being forgivable in the future. In October 2020, the government announced an expanded CEBA program that will provide an additional $20,000 interest-free loan, with potentially another $10,000 being forgivable.
As of October 26, 2020, eligibility for CEBA has expanded by removing the previous March 1, 2020, condition for having an active business chequing/operating account. With this removal, eligible businesses can now apply after opening a business chequing/operating account with their primary financial institution. The program has been extended to March 31, 2021 and is available to small businesses and not-for-profits who:
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Has a federal tax registration.
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Has paid between 20K and 1.5M in payroll expenses in 2019.
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Has an active business chequing/operating account with the Lender at the time of applying for CEBA.
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Intends to continue to operate its business or to resume operations.
For businesses with less than 20K in payroll;
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Has a Canada Revenue Agency business number and has filed a 2018 or 2019 tax return.
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Has non-deferable expenses between 40K and 1.5M.
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Eligible non-deferable expenses include wages to third parties, rent, lease payments, insurance, property taxes, utilities, debt payments, and materials.
Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000). The Canada Revenue Agency have confirmed that the CEBA loan is a form of government assistance, and the income inclusion is required in the year the loan is received. That means if you received the loan in the 2020 taxation year, you would have to include the forgivable portion ($10,000) as income in your 2020 income tax return.
More information can be found at https://ceba-cuec.ca/
Additional Benefits for Canadians
Managing Your Business During Covid - 19
More information on additional Government of Canada Covid-19 programs can be found at: https://www.canada.ca/en/services/business/maintaining-your-business.html
The federal government announced in its fall economic statement that it’s proposing to allow Canadians working from home this year due to Covid-19 to claim “modest” expenses of up to $400.
The amount would be based on the time an employee works from home and would not require employees to track expenses or secure documentation from their employers attesting that they were required to work from home. More information is still to be released.
Employee Home Office Expenses
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. If you have questions or require assistance please contact us.