COVID-19 and your Business (Canada)

IMPORTANT: This post is specific to Canada. If you are not a Canada business/taxpayer then it is probably not applicable to you.

Things are moving fast. This page has already been superseded. Please consult our COVID-19 summary page for more direction.

COVID-19 and your Business (Canada)

What you need to know about COVID-19 for your businessCOVID-19 is hitting business owners really hard. In this video Fuel Accountant’s founder, Peter McCarroll, discusses what you need to be thinking about and doing right now and what government assistance is available to you and your staff in Canada. Video is based on data available on 18 March 2020.

Here’s a summary of what’s available (updated on 1 April so includes newer data than on the video):

  • up to $40,000 loans for small businesses, guaranteed by the government, interest free for a year.  You may be able to get 25% of this forgiven (details not yet available).
  • 10% wage subsidy available to CCPC and Canadian Charities, no income change criteria, for all payments made to staff from March 18 to June 17.  You don’t have to apply – just deduct it from your payroll remittance.  There are limits per employee ($1375), employer ($25000) and payroll (amount deducted can’t exceed the Federal & Provincial (excluding Quebec) income tax deductions withheld from staff).
  • 75% wage subsidy available to CCPC and Canadian Charities who have suffered a 30% drop in revenue.  Up to $847 per employee er week.  Details on further conditions and how to apply are not yet available.
  • Filing date for personal T1s for non-self-employed individuals has been deferred until June 1
  • All payments for corporate and personal income taxes (including installments and balances due) that were due between March 18 and August 31 2020 are now due on Sept 1 (no change in filing or payment dates for GST or Payroll remittances)
  • CRA audit activity contact suspended
  • Emergency Response Benefit of $2,000/m available to individuals who have lost jobs, have jobs but aren’t getting paid because they can’t go in to work, and to self-employed people with no income.  You will apply for this through your CRA MyAccount portal (your personal CRA account) in early April.
  • Increase in GST Credit and Canada Child Benefit payments that will be paid in Mid-May (2019-2020 benefit package)
  • Payment deferral an interest free period on Canada Student Loan
  • EI Worksharing programme extended

Read the current status of federal assistance to businesses and individuals.

Updates since the video was recorded:

  • The Emergency Care Benefit and the Emergency Support Benefit have been replaced with the Emergency Response Benefit.  This is for workers laid off and self-employed people.  The government is trying to get people away from EI.   The benefit is $2,000 per month.  It won’t be available until early April.  You will apply for it through the CRA MyAccount portal (your personal CRA account) – if you have never logged into the CRA personal account you should do so now to ensure that you are ready as soon as the application process is available.
  • The government has announced a 75% Wage Subsidy to eligible businesses.  You need to be a CCPC and have suffered a 30% reduction in revenue.  The maximum benefit is $847 per week per employee.  You are expected to keep the employee on their regular earnings, even if they can’t work.  Details, including how to apply, aren’t yet available (see 1 April news release)

Need more advice?