Canadian Federal Government Covid-19 Updates

Covid-19 Updates

April 8 - Federal Government Update

Please note that these are proposed changes and still need to be approved by Parliament. 

Canada Summer Jobs Program temporary changes:

  • Subsidy: an increase to the wage subsidy, so that private and public sector employers can also receive up to 100% of the provincial or territorial minimum hourly wage for each employee
  • Date: an extension to the end date for employment to February 28, 2021
  • Scope of work: allowing employers to adapt their projects and job activities to support essential services
  • Hours: allowing employers to hire staff on a part-time basis

Canada Emergency Wage Subsidy
  • Eligibility: Businesses are eligible if they drop 15% in revenue in March instead of a 30% drop. The eligibility threshold for April and May will remain a 30% decline in revenues. Employers will have to apply for each month and attest to the drop each month.
  • Benchmarks: Compare revenues to the revenues from last year. For those businesses for which a year-over-year comparison is not possible or would disqualify them, they will now have the option of comparing March/April/May revenues with their revenues from January and February 2020.
  • Revenue Calculation: Revenue will be calculated through the accrual or cash method.
  • Charities and Non-Profits: Can include or exclude government funding when calculating loss in revenue (whichever way works best for them when calculating their revenue comparisons and determining eligibility).
  • Re-hiring: In order to make it more cost effective for employers to rehire workers, the Government is proposing to refund employer contributions to Employment Insurance and the Canada Pension Plan.
  • Penalties: Applicants will have to designate someone with control over their finances to make sure the claims are appropriate. Any business that receives the benefit and is be deemed ineligible will have to repay the full amount. Anyone caught abusing the program will face penalties up to 225% of what they received and up to 5 years in prison.

Interest-Free Loans

  • Canada Emergency Business Account: Provide interest-free loans of up to $40,000 to organizations with total a payroll of $50,000 to $1 million in 2019. Up to $10,000 of that amount will be eligible for complete forgiveness if $30,000 is fully repaid on or before December 31, 2022.
  • Applications: Available starting tomorrow. Loans will be available through large and small banks as well as through credit unions. Reach out to your financial institution for more details on their application process.

Please note that these are proposed changes and still need to be approved by Parliament. 

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