Last updated on April 7, 2020
RGD highlights the programs introduced by the Government of Canada to assist businesses and employers as they cope with the economic impact of the current crisis.
The Emergency Wage Subsidy provides wage subsidies of up to 75% on the first $58,700 of an employee’s wage, back-dated to March 15, 2020, with no per-employer maximum, to any business that is not publicly-funded and has experienced a decrease in gross revenues of at least 30% as compared to the same month in 2019.
The subsidy will expire after three months and employers are required to re-apply for the subsidy on a monthly basis and in doing so will have to show again that its revenues are 30% less than the same month in 2019.
Employers will not be able to claim the Canada Emergency Wage Subsidy in respect of remuneration paid to an employee in a week that falls within a four-week period for which the employee is eligible for the Canadian Emergency Response Benefit.
Temporary Wage Subsidy
Temporary Wage Subsidy of 10%, capped at $1,375 per employee and $25,000 per employer was announced prior to Canada Emergency Wage Subsidy. Employers who do not qualify for the Canada Emergency Wage Subsidy may still qualify for and avail themselves of the Temporary Wage Subsidy for Employers.
Employers that qualify for both subsidies will have their Canada Emergency Wage Subsidy reduced by the amount paid under the Temporary Wage Subsidy for Employers in the same period.
For corporations, the tax return filing date has been extended to June 1, 2020. This is applicable to corporations that would otherwise have a filing due date after March 18 and before June 1, 2020.
For self-employed people (and their spouse or common law partner), the tax return filing date remains unchanged from June 15, 2020.
Penalties and interest will not be charged if the deferred payment requirements are met by September 1, 2020.
For filing dates for individuals, trusts, charities, partnerships and others, click here.
GST/HST payments can now be made until June 30, 2020
- Monthly filers have to remit amounts collected for the February, March and April 2020 reporting periods
- Quarterly filers have to remit amounts collected for the January 1, 2020 through March 31, 2020 reporting period
- Annual filers, whose GST/HST return or instalment are due in March, April or May 2020, have to remit amounts collected and owing for their previous fiscal year and instalments of GST/HST in respect of the filer’s current fiscal year.
Stay tuned for our next article where we will highlight Government Programs to assist employees, freelancers and self-employed business owners.
This article is purely informational in nature and should not, in anyway, be construed as expert advice. Please contact your lawyers, accountants or relevant government institutions for any queries.
You can also call Ontario’s Stop the Spread Business Information Line at 1-888-444-3659.