The Government of Canada is taking action to protect our economy, health, safety, and jobs of Canadians during the global COVID-19 outbreak. The following is a summary of some of the programs that are available as pertaining to small businesses:
Temporary Wage Subsidy for Employers
Most CCPC small businesses would be eligible if they have employees on payroll.
The subsidy is equal to 10% of the remuneration you pay between March 18, 2020, and June 20, 2020, up to $1,375 per employee and to a maximum of $25,000 total per employer.
Once you have calculated your subsidy (manually), you can reduce your current remittance of federal, provincial, or territorial income tax that you send to the CRA by the amount of the subsidy.
You can start reducing remittances of federal, provincial, or territorial income tax in the first remittance period that includes remuneration paid between March 18, 2020, and June 20, 2020.
Please click here for more details
Business Credit Availability Program
The Government will increase the credit available to small, medium, and large Canadian businesses. As announced on March 13, a new Business Credit Availability Program will provide more than $10 billion of additional support to businesses experiencing cash flow challenges through the Business Development Bank of Canada and Export Development Canada. The Government is ready to provide more capital through these financial Crown corporations.
Work-Sharing Program - COVID-19: Income support to avoid layoffs
If your employees are eligible for Employment Insurance (EI) benefits, and your business is suffering a downturn due to COVID-19, you can apply for a work-sharing agreement. The agreement would allow them to work a temporarily reduced work week while receiving EI benefits.
Click here for more details
Tax Payment Deferrals
Individuals will have until June 1, 2020 to file their personal tax returns for the 2019 taxation year. In addition, all taxpayers who have income tax balances and income tax installments that are owing on or after March 18, 2020 and before September 2020 will be able to defer payment of any income tax amounts until September 1, 2020. These amounts will not be subject to interest or penalties during this period.
Corporations will also have more time to pay their taxes without paying any interest or penalties. The CRA will allow all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.
For corporations, the filing due date for corporate income tax returns has not been deferred.
Please contact us if you have any questions. We are actively looking into other current federal and provincial programs that may be available.