Service Canada Quick Facts
- 1.3 million EI requests so far in 2020
- 2.1 million all of 2019
- 430k claims processed so far during pandemic
- Looking to process 400k per day now with the new system in place
- EI was not designed to address this
- EI does not cover all workers
- Eligibility has not changed for EI
- Still 15 weeks of income replacement
- It is geared towards those who are unable to work because of illness, injury or quarantine, to allow them time to restore their health and return to work.
- Waiting period is waived and there is a dedicated toll line
- Suggestion is to complete the application and then call to speed things up
Source: Coronavirus disease (COVID-19) – Employment and Social Development Canada
- Eligibility criteria is Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19
- Working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures are eligible as well
- The CERB would apply to wage earners, as well as contract workers and self-employed individuals
- This benefit is aimed at individuals not eligible for EI
- April 6, 2019 sign-up opens
- 3-5 days for direct deposit
- 10 days for cheques
- If they applied for EI, they will be automatically enrolled for CERB if not eligible for EI
- Sign up @ www.canada.gc.ca/coronavirus-cerb
Source: Canada Emergency Response Benefit
Employee Wage Subsidy Program
You are an eligible employer if you:
- non-profit organization
- registered charity
- Canadian-controlled private corporation eligible for the small business deduction.
- have an existing business number and payroll program account with the CRA on March 18, 2020
- partnership if their members consist exclusively of individuals (excluding trusts), registered charities, or Canadian-controlled private corporations (CCPCs) eligible for the small business deduction
- pay salary, wages, bonuses, or other remuneration to an eligible employee.
You are not an eligible employer if you:
- individual trust
- cooperative corporation
An eligible employee is an individual who is employed in Canada.
Shareholder employees ARE eligible.
Self-employed wages ARE NOT eligible.
The subsidy is equal to 10% of the remuneration you pay from March 18, 2020 to June 19, 2020, up to $1,375 for each eligible employee and to a maximum of $25,000 total per employer.
Associated CCPCs will not be required to share the maximum subsidy of $25,000 per employer.
After you have calculated the total subsidy, you can reduce your current payroll remittance of federal, provincial, or territorial income tax. You cannot reduce your remittance of CPP contributions or EI premiums.
You can start reducing payroll remittances of federal, provincial, or territorial income tax in the first remittance period that includes remuneration paid from March 18, 2020 to June 19, 2020.
If the income taxes you deduct are not enough to offset the value of the subsidy in a specific period, you can reduce future payroll remittances to benefit from the subsidy. This includes reducing remittances that may fall outside of the application period for the wage subsidy (after June 19, 2020).
Source: Temporary Wage Subsidy Program for Employers
Canada Emergency Wage Subsidy
- 30% or more revenue lost as compared to the same period last year
- You will need to reapply each month for the subsidy and prove the decrease in revenue
The 75% subsidy will be equal to the greater amount of the following scenarios:
- 75% of the remuneration paid, up to $847/week/employee
or the lesser of these two amounts
- The amount of remuneration paid, up to $847/week/employee
- 75% of the employee’s pre-crisis weekly pay, up to $847/week/employee
- 12-week program retroactive to March 15, 2020
- 6 weeks until funds become available as of April 1, 2020
- 3 – 6 weeks until CRA site as of April 1, 2020
- Rebate system – it is paid out after the application is processed
Interaction with Employee Wage Subsidy Program (10%)
For employers that are eligible for both the Canada Emergency Wage Subsidy and the 10 per cent wage subsidy for a period, any benefit from the 10 per cent wage subsidy for remuneration paid in a specific period would generally reduce the amount available to be claimed under the Canada Emergency Wage Subsidy in that same period.
Interaction with the Canadian Emergency Response Benefit
An employer would not be eligible to claim the Canada Emergency Wage Subsidy for remuneration paid to an employee in a week that falls within a 4-week period for which the employee is eligible for the Canadian Emergency Response Benefit. Employers who are not eligible for the Canada Emergency Wage Subsidy would still be able to grant leave to employees who will receive up to $2,000 a month.
Source: The Canada Emergency Wage Subsidy
- EI salary top up
- There is no other top-up program currently beyond work sharing
- It is not recommended, as most clients have not applied, and the benefits activate when the approval process is complete
- Approval process is thorough and takes weeks/months
- If client is already approved, then you should take advantage if you are still operating and your employees need regular hours
Additional info: Supplementary Unemployment Benefit Plan
- Effective March 15, 2020 to March 14, 2021
- Not limited to one specific sector or industry
- Extension of the maximum possible duration of an agreement from 38 weeks to 76 weeks
- Mandatory cooling off period has been waived for employers who have already used the Work-Sharing program so that eligible employers may immediately enter into a new agreement
- Reduce the requirement and expand eligibility to employers affected by accepting business who have been in business for only 1 year rather than 2, and eliminate the burden of having to provide sales/production figures at the same time
Additional info: Work-Sharing Program