As businesses open up again, there’s still a lot of economic uncertainty. In response, the Government of Canada has extended COVID-19 support for individuals and businesses to help support those who continue to need it.
This includes extending the Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy (CERS) until October 23, 2021, adding an additional claim period.
Employers and organizations will also see increased rates for the CEWS and CERS from August 29 to September 25 (claim period 20).
What is the CEWS benefit?
The CEWS benefit is available to businesses who have seen a decline in revenue since the pandemic began. It will help cover all or part of your employees’ wages and may also allow you to re-hire workers.
To be eligible for CEWS, you must have had a CRA payroll account on March 15, 2020, a drop in revenue, and you must be a sole proprietorship, partnership, corporation, non-profit, registered charity, or one of the approved types of employers (see the full list on Canada.ca).
What is the CERS benefit?
The CERS benefit is also available for businesses that have had a decline in revenue to help offset the cost of commercial rent and property expenses. To be eligible, you must have had a payroll account on March 15, 2020, a CRA business number on September 27, 2020 or have purchased a business from someone who met these criteria.
You must also be an eligible business, charity or non-profit and have a drop in revenue and eligible expenses. Eligible expenses include rent, property insurance, utilities and maintenance for common areas. It also includes property and municipal taxes, and interest on commercial mortgages.
The government is also proposing changes to CEWS and CERS that will provide more flexibility when determining eligibility. Specifically, they are looking at adjusting the calculation used to determine revenue decline. This new calculation will also apply to the new Canada Recovery Hiring Benefit.
With so many businesses continuing to struggle due to capacity restrictions and public health requirements, this comes as good news.
The Canada Recovery Benefit (CRB), Canada Recovery Caregiver Benefit (CRCB) and Canada Recovery Sickness Benefit (CRSB) will also be extended until October 23, 2021.
Canadians will also be able to receive an additional four weeks of CRB, which is critical for those who are no longer eligible for EI.
While these programs don’t offer direct benefits to businesses, they can help alleviate hiring pressures for businesses who are not yet able to bring all their staff back on full time. To apply, your employees must be out of work or see a 50% reduction in their average weekly income compared to last year.
Need further assistance with these benefits for your Ontario-based business? Get in touch with Koroll & Company today. We would love to help.
