The Government of Canada’s relief package includes the following supports for businesses:

• Canada Emergency Wage Subsidy. Any company can qualify no matter what size. This includes non-for-profits and charities. Companies must demonstrate their revenues have decreased by 30% or more to be eligible. The federal government will cover up to 75% of an employee’s salary on the first $58,700 earned  which means up to $847 a week. Funds will be back-dated to March 15. The Prime Minister encouraged businesses that have the means to pay the remaining 25% of salaries.The Government of Canada also warned against companies seeking to take advantage of this subsidy or make fraudulent claims. Learn more.
• A smaller wage subsidy of 75% for eligible small businesses that do not qualify for the Canada Emergency Wage Subsidy. The 75% subsidy covers 75% of wages paid from March 18 to before June 20, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
• Access to additional credit. More than $10 billion in credit will be available through:
  • Interest-free loans to small businesses. Through a new Canada Emergency Business Account, financial institutions and Export Development Canada (EDC) will offer interest-free loans of up to $40,000. Small businesses should apply through their financial institutions. Learn more.
  • A loan guarantee for SMEs through EDC for loans of up to $6.25 million. Learn more.
  • A co-lending program for SMEs between financial institutions and the Business Development Bank of Canada (BDC). Learn more.
  • Additional credit from EDC and BDC as part of the Business Credit Availability Program (BCAP). Businesses seeking support through BCAP should contact the financial institutions with whom they have a pre-existing relationship. Learn more.
  • Credit for the agri-food sector through Farm Credit Canada. Learn more.
• Deferrals on:
  • Income taxes until August 31.
  • GST/HST remittances until June 30.
  • Customs duty and sales tax for importers until June 30.
• Audit suspensions by the Canada Revenue Agency.
• An Insured Mortgage Purchase Program to provide stable funding to banks and mortgage lenders and support continued lending to Canadian businesses and consumers.

For more information about these and other federal measures, click here.

• The Canada Emergency Business Account
• Business Assistance through your Financial Institutions

The Government of Ontario has introduced the following measures to support businesses:

• Lower electricity rates for small businesses, farms, and residents until at least May 8, and banning electricity disconnection for those that fail to pay their utility bills until July 31. Click here for more information.
• Tax deferrals:
  • $6 billion in provincially administered taxes deferred from April 1 to August 31
  • $1.8 billion in property taxes deferred for 90 days (including the provincial education tax) in collaboration with municipal partners
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• Workplace Safety and Insurance Board (WSIB) premium and expense deferrals of $1.9 billion for employers for 6 months.
• Postponement of the 2021 property tax reassessment. 
• Changes to the Employer Health Tax (EHT) to retroactively reduce the tax and temporarily increase the exemption to $1 million
• A Regional Opportunities Investment Tax Credit to support regions lagging in employment growth.

For more information about these and other provincial measures, click here. Today, (April 27th) Premier Ford announced Guidelines to Re-opening the Economy. The Guidelines  are meant as benchmarks, and not a calendar,  to be considered and reviewed every 2-4 weeks, before any decision to be made about the gradual re-opening of businesses and allowing for gatherings and other activities. He further announced the formation of a Ministerial Task Force to look at the Economic Recovery for the province, and future training and resources to enable businesses to re-open safely.

Toronto's COVID-19 - City Responds The City of Toronto is supporting businesses in Toronto with the following measures:

• An extended grace period for tax and other payments for businesses (payment and payment penalties) for 30 days, beginning March 16.
• A contingency fund to support businesses and affected groups.
• Expanded small business advisory services to help businesses as they plan to recover from impacts.

Exemptions to the Noise Bylaw for all retail businesses to facilitate after-hour deliveries and ensure essential goods remain in stock.

Employers of all sizes and across all sectors of the economy would be eligible, with certain exceptions including public sector entities including municipalities, Crown corporations, public universities, colleges, schools, and hospitals. Learn more.

• Businesses will need to demonstrate a 15 per cent reduction in gross revenues for March given many businesses did not experience the effects of the crisis until mid March. A 30 per cent reduction will still be required to receive the subsidy in April and/or May.
• Employers can compare their revenue of March, April and May 2020 to that of the same month of 2019, or to an average of their revenue earned in January and February 2020.

Additional Information Employers eligible for the CEWS will be entitled to receive a 100% reimbursement for employer-paid contributions to Employment Insurance (EI), Canada Pension Plan (CPP);  Quebec Pension Plan (QPP); and Quebec Parental Insurance Plan premiums. If an employee is receiving remuneration through the Canada Emergency Response Benefit, their employer would not be eligible to claim the Canada Emergency Wage Subsidy for that period. Learn more about the Canada Emergency Wage Subsidy. Small businesses that do not qualify for the Canada Emergency Wage Subsidy may be eligible for a smaller wage subsidy covering 75% of wages paid from March 18 to before June 20, up to a maximum subsidy of $1,375 per employee and $25,000 per employer. Today, (April 27th) Premier Ford announced Guidelines to Re-opening the Economy. The Guidelines  are meant as benchmarks, and not a calendar,  to be considered and reviewed every 2-4 weeks, before any decision to be made about the gradual re-opening of businesses and allowing for gatherings and other activities. He further announced the formation of a Ministerial Task Force to look at the Economic Recovery for the province, and future training and resources to enable businesses to re-open safely.

• 75% Wage Subsidy: For employers that are eligible for both the Canada Emergency Wage Subsidy and the 75% wage subsidy for a period, any benefit from the 75% 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.
• Canada 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 furlough employees who will receive up to $2,000 a month.

Organizations that do not qualify for the Canada Emergency Wage Subsidy may continue to qualify for the previously announced wage subsidy of 75%. This subsidy is equivalent to 75% of remuneration paid between March 18 and June 19. The maximum subsidy amount is $1,375 per employee to a maximum of $25,000 for the employer. Corporations can only qualify if they have taxable capital up to $15 million. For employers that are eligible for both the Canada Emergency Wage Subsidy and the 75% wage subsidy for a period, any benefit from the 75% 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.

The Government of Ontario is protecting workers impacted by COVID-19 with legislation that:

• Provides protected leave to individuals needing to go into isolation or quarantine and for those who need to miss work in order to care for family members, including children who are at home due to school or daycare closures. The protected leave will be retroactive to January 25 (the date of the first presumptive case of COVID-19 in Ontario).
• Makes explicit that doctor’s notes will not be needed in such instances.

For more information on the provincial government’s response, click here. The Government of Canada’s relief package includes the following protections for workers and unemployed Canadians: 

• The Canada Emergency Response Benefit (CERB) for workers who lose income as a result of the COVID-19 pandemic, whether or not they are eligible for EI. The CERB provides $2,000 per month for up to 4 months.  Applications opened on April 6. Click here to apply, or apply by calling 1-800-959-2019.
• Easier access to Employment Insurance (EI) benefits by waiving the one-week waiting period for individuals in imposed quarantine and waiving the requirement to provide a medical certificate to access EI sickness benefits. Employers should provide a Record of Employment (ROE) following the code instructions below.
• Enhanced Work-Sharing Program to provide EI benefits to workers that agree to reduce their normal working hours as a result of COVID-19 developments beyond the control of their employers. For more information about the temporary Work-Sharing measures, click here.
• Income tax filing deferrals without penalty until June 1 and payment of amounts owing until August 31.

For more information about the federal government’s response, click here.

If your employees are directly affected by COVID-19 and they are no longer working, you must issue a Record of Employment (ROE) using the following codes:

• When the employee is sick or quarantined, use code D (Illness or injury) as the reason for separation (block 16). Do not add comments.
• When the employee is no longer working due to a shortage of work because the business has closed or decreased operations due to coronavirus (COVID-19), use code A (Shortage of work). Do not add comments.

When the employee refuses to come to work but is not sick or quarantined, use code E (Quit) or code N (Leave of absence), as appropriate. Avoid adding comments unless absolutely necessary.

Self-employed Canadians who lose income as a result of COVID-19 should apply to the Canada Emergency Response Benefit (CERB). To be eligible for the CERB, self-employed people need to cease working and not receive income for at least 14 days because of COVID-19 disruptions. The CERB provides taxable income of $2,000 per month for up to 4 months. It will be paid every 4 weeks and be available retroactively from March 15 until October 3, 2020. Applications will open on April 6 at Canada.ca/coronavirus. Applicants will also be able to apply by calling 1-800-959-2019. Canadians will begin receiving their CERB payments within 10 days of application. Learn more. Additionally, all Canadians will have until June 1 to submit their income tax returns. Income tax payments can be deferred until August 31 without penalty.

Federal tax filing and payment deadlines:

• T1, T2 – June 1, 2020
• T3, T5013 – May 1, 2020
• T3010 – December 31, 2020
• Federal income tax payments – September 1, 2020
• GST/HST filings and remittances – June 30, 2020
• The CRA is NOT deferring payment of payroll source deduction remittances.

Ontario (provincial) tax filing and payment deadlines:

• Employer Health Tax – August 31, 2020
• Tobacco Tax – August 31, 2020
• Fuel Tax – August 31, 2020
• Gas Tax – August 31, 2020
• Beer, Wine, and Spirits Tax – August 31, 2020
• Mining Tax – August 31, 2020
• Insurance Premium Tax – August 31, 2020
• International Fuel Tax Agreement – August 31, 2020
• Retail Sales Tax on Insurance Contracts and Benefit Plans – August 31, 2020
• Race Tracks Tax – August 31, 2020

Notes: It is recommended that you file returns electronically, as the CRA will not process paper returns until it resumes operations. Additionally, the CRA is permitting electronic signatures for federal T183 and T183 Corp. If you are in a net refund position, you are encouraged to file as soon as possible to help with your cash flows.

The Public Health Agency of Canada’s recommendations for workplaces include:

• Encouraging employees to use individual measures such as frequent hand washing and social distancing.
• Introducing policies that reduce social contact as much as possible. Where feasible, use teleworking arrangements to allow employees to work from home.
• Increasing frequency with which surfaces are disinfected, and providing access to handwashing facilities and sanitizing dispensers throughout the workplace.
• Following the federal government’s travel health advisories.

For a full list of recommendations, click here.

The Government of Ontario has mandated the closure of all non-essential workplaces for at least 14 days, beginning on March 25. Essential workplaces include supermarkets, pharmacies, LCBOs, restaurants for takeout and delivery, agri-food businesses, utilities, insurance, and more. Click here for a full list. For more information about closures of at-risk workplaces or how emergency measures impact you, please call 1-888-444-3659. Help is available from Monday to Sunday, from 8:30 a.m. – 5:00 p.m.

Currently under the Occupational Health and Safety Act, if an employer is advised that a worker is ill resulting from an exposure at work (including COVID-19), or a claim has been filed with the Workplace Safety and Insurance Board with respect to COVID-19 exposure at work, the employer must notify the Ministry of Labour, Training and Skills Development in writing within four days. The employer must also notify the workplace joint health and safety committee or a health and safety representative and trade union, if any.

At this time, the Public Health Agency of Canada recommends avoiding all non-essential travel outside of Canada. Keep in mind that travellers may be forced to remain outside Canada longer than expected, as many countries have introduced travel restrictions and quarantines, and airlines have cancelled flights. Additionally, travellers are expected to self-isolate for 14 days upon their return. Click here for more information.

The Public Health Agency of Canada strongly recommends avoiding all non-essential travel outside of Canada to stem the spread of COVID-19. This may require you to cancel or postpone business travel arrangements. Additionally, the United States and Canada have agreed to close the border between the two countries to non-essential travel. Supply chains, including trucking, will not be affected by this measure. The Government of Canada has also put in place measures to restrict entry into Canada by foreign nationals, with exemptions for temporary foreign workers and other foreign nationals who have already committed to working, studying, or living in Canada. For more information about travel implications, click here.

The Governments of Ontario and Canada are calling on businesses to help meet the challenges of COVID-19. If your organization can provide medical products and services, visit these two portals to see which supplies are needed:

1. Ontario Together 
2. Government of Canada

If you or your organization has ideas or solutions to help the government respond to COVID-19, visit Ontario Together. Solutions could include virtual mental health services, supply chain resiliency monitoring, or financial advising for small businesses.

If your company is able to manufacture technology, equipment, and medical products to aid in the fight against COVID-19, you may be eligible for funding from:

• The Ontario Together Fund. $50 million in provincial funding to help companies retool, build capacity, or adopt the technological changes needed to produce supplies and equipment for hospitals, long-term care homes, and other critical public services. Funding will go towards the most viable, innovative proposals. Learn more.
• Next Generation Manufacturing Canada (NGen). Supercluster funding to support companies as they rapidly respond to the COVID-19 pandemic by building a Canadian supply of essential equipment, products, and therapeutics. Learn more.
• The National Research Council of Canada’s Industrial Research Assistance Program and Innovative Solutions Canada. Funding for small- and medium-sized businesses (fewer than 500 staff) to supply products or solutions in response to COVID-19 related challenges. Learn more.