COVID-19: Economic Relief Measures Announced to Date

  • On March 18, 2020, Prime Minister Trudeau announced a “Helping Businesses Keep Their Workers Wage Subsidy” as part of the Economic Response Plan. This program is designed to support businesses that are facing revenue losses and to help prevent lay-offs.
  • On March 25, 2020, the Government of Canada passed Bill C-13, An Act respecting certain measures in response to COVID-19 (Bill C-13) to implement the response plan measures. Framework legislation enacted as part of Bill C-13 provides a federal payroll deduction rebate which is expected to be 10% of remuneration paid by “Eligible employer” to eligible employees between March 18, 2020 and June 19, 2020, up to $1,375 per employee and to a maximum of $25,000 total per employer. Assistance received under the wage subsidy reduces the amount of remuneration expenses eligible for other federal tax credits calculated on the same remuneration.
  • Eligible employers include individuals, non-profits, charities, Canadian-controlled private corporations (CCPCs) having a business limit in the last taxation year greater than nil (i.e. eligible for the small business deduction), and partnerships, all of the members of which are comprised of the foregoing persons, and must:
    • have an existing business number and payroll program account with the CRA as of March 18, 2020; and
    • pay salary, wages, bonuses, or other remuneration to at least one individual employed in Canada during the applicable period.
  • CCPCs are eligible for the small business deduction if the combined taxable capital employed in Canada of the CCPC and any associated corporations is under $15 million. For more information, see the Government of Canada’s website[27].
  • The Department of Finance has further indicated that associated CCPCs would not be required to share the maximum subsidy of $25,000 per employer. Additionally, since the subsidy operates by allowing an eligible employer to reduce their payroll remittances, the Department of Finance suggested that the if the amount of the subsidy exceeded an eligible employer’s payroll remittances for the applicable period, the employer would be allowed to continue to reduce remittances beyond June 20, 2020, or request the unclaimed amount be paid out to the eligible employer or credited against the eligible employer’s 2021 payroll remittances.
  • For more information, see the temporary wage subsidy for employers frequently asked questions[28]

Large Employer Emergency Financing Facility (LEEFF)

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