Business Owners’ COVID-19 Support Checklist

Since the onset of the COVID-19 pandemic, businesses have been subject to unprecedented challenges. As a response, the Federal Government has implemented numerous economic measures for businesses to help stabilize the economy amidst the COVID-19 pandemic. As we head into the final quarter of 2020, now is a good time to reflect upon what has transpired in 2020 and review the implications for your business. To assist you in this endeavour, we have compiled a checklist of issues which you can go through at your convenience to help you keep up to date with the various government programs available.  Each program below is described briefly and accompanied by a link to our full article on the topic.

Businesses

• Apply for the New Canada Emergency Wage Subsidy (CEWS) which covers a portion of wages for companies that have experienced a monthly revenue reduction compared to the same month in 2019 or compared to an average of January and February of 2020. For March, a company must have experienced at least a15% revenue reduction and for any month between April and June a minimum 30% revenue reduction is required. For any month between July and November, a company is eligible for the wage subsidy if they experienced any revenue reduction.
  • If a company is not eligible for CEWS, a 10% Temporary Wage Subsidy is also available for up to $25,000 per employer.
    • The CRA recommends completing a Self-Identification Form to ensure an employer does not receive a discrepancy notice
  • For the CEWS between March and June, the Canada Revenue Agency (CRA) has created an online calculator and we have a detailed application walkthrough video.
  • For the CEWS between July and November, there is a different calculation. The CRA has created another online calculator applicable for July and August. We anticipate the release of an additional calculator for September to November to be released shortly.
    • The calculations are more complicated and while we do have a calculation video, we recommend reaching out to your Bateman MacKay Business Advisor for assistance.
  • Businesses should take steps to verify that any validation call is indeed from the CRA.
• Apply for a $40,000 Canada Emergency Business Account (CEBA) loan through participating financial institutions, which is interest-free until Jan 1, 2023, and 25% of the loan may be forgiven.
  • This program was expanded to include businesses with payroll of less than $20,000. These businesses require between $40,000 and $1.5 million in eligible non-deferrable expenses to be eligible for the loan.
• Work with your landlord to apply for the Canada Emergency Commercial Rent Assistance (CECRA) which encourages landlords to provide eligible small business owners with subsidized rent reductions in April, May, June, July, August and September.
  • Landlords are responsible for applying and tenants must provide some information, including attesting to a revenue reduction of at least 70%
• Understand new tax filing and payment deadlines.
  • Most tax payment deadlines for individuals, corporations and trusts have been moved to September 30^th.
  • T2 Corporate Income Tax Returns and T3 Trust Income Tax Returns originally due in June, July or August 2020 are now due on September 1, 2020.
  • Business income tax amounts that become owing or due after March 18, 2020, are deferred to September 30, 2020.
  • All GST/HST payments are deferred until the end of June 2020.
  • The EHT exemption has increased for 2020 and the interest and penalty free period for this and other business taxes lasts until October 1, 2020.
  • WSIB payments were deferred until August 31, 2020
• If workforce reduction is required consider Employment Insurance employer Top Up or Work-Sharing Program.
  • Employees can also apply for the $500 a week Canada Emergency Response Benefit if they are unable to work for reasons related to COVID-19. This program will end October 3^rd and those who still cannot work will be transitioned to an updated Employment Insurance program or a Temporary Recovery Benefit.
• Apply for funds from Business Development Bank of Canada or Export Development Canada from the Business Credit Availability Program which includes an additional $10 billion in federal funds.
• If you have applied for available federal support programs and your business is unable to access the CEBA or BCAP, you can apply for funds from the Regional Relief Recovery Fund.
• Contact property and casualty insurance broker for availability of premium rebates, deferrals of premiums, business interruption amongst other matters.

Business Owners

• Understand the new tax filing and payment deadlines for individuals and the self-employed.
  • The individual tax filing deadline is deferred until June 1, 2020, and the deadline to pay any balance is deferred until September 30th, 2020.
  • The tax payment deadline for self-employed individuals is also deferred until September 30, 2020.
• If necessary, inquire with your mortgage provider about deferring payments on homeowner Canada Mortgage and Housing Corporation (CMHC)-insured loans.
• Capitalize on the prescribed rate loan reduction to 1% with loans to family members or trusts.
• Review current interest rates to determine if restructuring debt or borrowing funds for investment purposes is beneficial.
• Consider an estate freeze or review assets that had been frozen in the past.
• If you have children, apply for the Ontario Government’s Support for Families, a one-time payment of $200 per child under 12 or $250 per child with special needs under 21.
  • The federal government added a one-time, $300 payment to the Canada Child Benefit, no application is necessary.
• Ensure Wills and Powers of Attorney are up to date.
• Ensure all insurance policies are reflective of current circumstances.