COVID-19 Business & Benefit Cheat Sheet: UPDATED 02/04/2020! COVID-19 Small Business FAQs Coronavirus

COVID-19 Business & Benefit Cheat Sheet: UPDATED 02/04/2022!

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COVID-19 BUSINESS BENEFITS CHEAT SHEET

Note, there are more COVID benefits, but these are the main ones.

(updated February 4th, 2022)

Interactive CRA Business Benefit Calculator.

FIND OUT WHAT YOU'RE ENTITLED TO HERE - HTTPS://INNOVATION.ISED-ISDE.CANADA.CA/S/?LANGUAGE=EN_CA

Canada Digital Adoption Program

In Budget 2021, the Government of Canada announced the Canada Digital Adoption Program (CDAP) to support Canadian small and medium-sized enterprises (SMEs). CDAP will help SMEs boost their e-commerce presence and digitize how they run their businesses behind the scenes. The program provides funding and expertise to businesses, as well as training and work opportunities for young Canadians.

BUSINESSES WILL BE ABLE TO APPLY FOR TWO DIFFERENT KINDS OF SUPPORT:

  • Stream 1: Grow Your Business Online, will help SMEs take advantage of e-commerce opportunities

  • Stream 2: Boost Your Business Technology, will help businesses with the development and implementation of digital adoption strategies

    https://www.ic.gc.ca/eic/site/152.nsf/eng/home

The applications are NOT yet available for 2022, however be the first to know by subscribing for updates.

Canada Recovery Hiring Program (CRHP)

BUDGET 2021 INTRODUCED THE NEW CANADA RECOVERY HIRING PROGRAM (CRHP).

This new program provides eligible employers that continue to experience qualifying declines in revenues relative to before the pandemic.

The proposed subsidy would provide employers with a subsidy of up to 50 percent on the incremental remuneration paid to employees between June 6, 2021, and May 7th, 2022. Eligible employers would claim the higher of the Canada Emergency Wage Subsidy or the new proposed subsidy.

CRHP Calculator here - https://www.canada.ca/.../reco.../crhp-calculate-amount.html

Apply NOW through CRA My Business Account.

Tourism and Hospitality Recovery Program (THRP)

AS A BUSINESS, CHARITY, OR NON-PROFIT IN CANADA WHO HAS BEEN AFFECTED BY THE COVID-19 PANDEMIC, YOU MAY BE ELIGIBLE FOR A WAGE SUBSIDY, A RENT SUBSIDY, OR BOTH THROUGH THE THRP.

You may qualify if you are either:

  • part of the tourism, hospitality, arts, entertainment, or recreation sectors, or

  • affected by a qualifying public health restriction

THERE ARE TWO WAYS ELIGIBLE ORGANIZATIONS CAN QUALIFY FOR THE THRP:

Tourism, hospitality, arts, entertainment, and recreation sectors: Option 1 of 2

The first way to qualify for the THRP is by meeting the following three conditions:

  • More than 50% of your eligible revenue comes from one or more of the tourism, hospitality, arts, entertainment, or recreation activities this program supports

  • You have a 12-month average revenue drop from March 2020 to

  • February 2021 of at least 40%

  • You have a claim period revenue drop of at least 40%

https://www.canada.ca/.../trhp-activities-qualify.html

Hardest-Hit Business Recovery Program (HHBRP)

AS A BUSINESS, CHARITY, OR NON-PROFIT IN CANADA WHO HAS FACED DEEP LOSSES DUE TO THE COVID-19 PANDEMIC, YOU MAY BE ELIGIBLE FOR A WAGE SUBSIDY, A RENT SUBSIDY, OR BOTH THROUGH THE HHBRP.

Who can apply for the HHBRP

Eligible organizations, regardless of their sector, may qualify for the HHBRP if they don’t

qualify for the Tourism and Hospitality Recovery Program (THRP).

To qualify for the HHBRP, you must meet the following two conditions:

  • You have a 12-month average revenue drop from March 2020 to February 2021 of at least 50%

  • You have a claim period revenue drop of at least 50%

Ontario Staycation Tax Credit

ONTARIO RESIDENTS CAN CLAIM 20% OF THEIR ELIGIBLE 2022 ACCOMMODATION EXPENSES,

For example, for a stay at a hotel, cottage or campground, when filing their personal Income Tax and Benefit Return for 2022. You can claim eligible expenses of up to $1,000 as an individual or $2,000 if you have a spouse, common-law partner or eligible children, to get back up to $200 as an individual or $400 as a family.

https://www.ontario.ca/page/ontario-staycation-tax-credit?_ga=2.31765758.1938407298.1640799995-1372539069.1640799995

Canada Worker Lockdown Benefit

BILL C-2, WHICH RECEIVED ROYAL ASSENT ON DECEMBER 17, 2021, INCLUDED A NEW LOCAL LOCKDOWN PROGRAM TO PROVIDE BUSINESSES THAT FACE TEMPORARY NEW LOCAL LOCKDOWNS WITH UP TO THE MAXIMUM AMOUNT AVAILABLE THROUGH THE WAGE AND RENT SUBSIDY PROGRAMS.

The government is temporarily expanding the Local Lockdown Program such that a business can now also qualify if:

  • one or more of its locations is subject to a public health order that has the effect of reducing the entity's capacity at the location by 50 per cent or more, and

  • activities restricted by the public health order accounted for at least 50 per cent of the entity's total qualifying revenues during the prior reference period.

More information here: https://www.canada.ca/.../temporarily-expanding...

Ontario Extending COVID-19 Paid Sick Days

SUPPORT FOR WORKERS AND EMPLOYERS WILL CONTINUE UNTIL JULY 31, 2022

The Ontario government is extending its Worker Income Protection Benefit program, which provides paid sick days, until July 31, 2022 to continue keeping workers safe and ensure they do not lose pay if they need to miss work for reasons related to COVID-19.

More information here: https://bit.ly/3FnAkG6


Ontario Business Costs Rebate Program

APPLICATIONS OPENING JANUARY 2022

Through the new Ontario Business Costs Rebate Program, eligible businesses will receive rebate payments equivalent to 50 per cent of the property tax and energy costs they incur while subject to the current capacity limits. This will provide support to businesses that are expected to be most impacted financially by the requirement to reduce capacity to 50 per cent.

Online applications for this program will open in mid-January 2022, with payments to eligible businesses provided retroactive to December 19, 2021. Businesses will be required to submit property tax and energy bills as part of the application process.

More info here: https://www.ontario.ca/.../businesses-get-help-covid-19...

Improving Cash Flows for Ontario Businesses | January 1, 2022 - July 1, 2022.

The province is also providing additional support to help improve cash flows for Ontario businesses by providing a six-month interest- and penalty-free period to make payments for most provincially administered taxes.

  • Employer Health Tax

  • Beer, Wine & Spirits Taxes

  • Tobacco Tax

  • Insurance Premium Tax

  • Fuel Tax

  • International Fuel Tax Agreement

  • Gas Tax

  • Retail Sales Tax on Insurance Contracts & Benefit Plans

  • Mining Tax

  • Race Tracks Tax

More information here: https://www.ontario.ca/.../businesses-get-help-covid-19...

Canada Recovery Hiring Program (CRHP) - in tandem with CEWS

UPDATE - June 29, 2021, The Government passed Bill C-30 to fund the Canada Recovery Hiring Program.

Budget 2021 introduced the new Canada Recovery Hiring Program (CRHP). This new program provides eligible employers that continue to experience qualifying declines in revenues relative to before the pandemic. The proposed subsidy would provide employers with a subsidy of up to 50 percent on the incremental remuneration paid to employees between June 6, 2021, and November 20, 2021. Eligible employers would claim the higher of the Canada Emergency Wage Subsidy or the new proposed subsidy. The aim is to make it as easy as possible for businesses to hire new workers as the economy reopens.

Eligible employers include Canadian-controlled private corporations (CCPCs), individuals, non-profit organizations, registered charities, and certain partnerships. Employers qualify for this program if they have a drop in revenue, which is to be calculated the same way as it is calculated for the CEWS. Therefore, the revenue drop must be more than 0 percent for the June 6 – July 3, 2021 qualifying period. The revenue drop must be greater than 10 percent for the qualifying periods between July 4, 2021 and November 20, 2021.

The Canada Recovery Hiring Program will work in tandem with CEWS. Period 17 of the CEWS would be the first period of CRHP. As the CEWS rates decrease, eligible employers could still receive support from CRHP.

CRHP Calculator here - https://www.canada.ca/.../reco.../crhp-calculate-amount.html

Apply NOW through CRA My Business Account.

MORE INFO HERE - https://www.canada.ca/.../recovery-hiring-program.html

Canada Emergency Wage Subsidy (CEWS) - (Up to 75% Payroll Reimbursement Subsidy)

  • UPDATE April 20, 2021 - Extended until September 25, 2021

  • REVISED July 27, 2020 - Drastic overhaul for periods 5-9. There is now a base subsidy + top up subsidy and you can qualify if your revenues have dropped less than 30% now. Ask us for more information!

  • Have your sales been reduced because of COVID and you're running payroll? Let's talk.

CEWS Calculator here - https://www.canada.ca/.../cews-who-eligible-employer.html

Apply NOW through CRA My Business Account.

CEWS Info - https://www.canada.ca/.../economic.../wage-subsidy.html

Canada Emergency Rent Subsidy (CERS) - (Up to 65% Commercial Rent Subsidy)

  • UPDATE December 19, 2021 - Extended until May 7, 2022( after Oct 24, 2021 you will qualify for rent support through Tourism & Hospitality Recovery Program or Hardest Hit Business Recovery Program)

  • YOU CAN APPLY NOW! Right through your CRA My Business Account

  • Available retroactive to September 27, 2020, until September 25, 2021

  • Mirrors the CEWS in many ways

  • Provides the reimbursement DIRECTLY to qualifying renters and property owners, without requiring the participation of landlords.

  • The maximum base rate subsidy would be 65%, available to organizations with a revenue drop of 70 per cent or more.

  • The base rate would then decline to a rate of 40% for organizations with a revenue drop of 50 per cent

  • Gradually reduce to zero for those not experiencing a decline in revenues.

  • This structure mirrors the Canada Emergency Wage Subsidy rate structure.

  • Expenses for each qualifying period would be capped at $75,000 per location and be subject to an overall cap of $300,000 that would be shared among affiliated entities.

FULL details here - https://www.canada.ca/.../emergency-rent-subsidy.html...

Highly Affected Sectors Credit Availability Program (HASCAP) Low Interest Loan between $25,000 and $1M

On January 26, 2021, the Highly Affected Sectors Credit Availability Program (HASCAP) was launched. HASCAP is available to businesses across the country, in all sectors, that have been hit hard by the pandemic.

This includes restaurants, businesses in the tourism and hospitality sectors, and those that rely on in-person service.

To be eligible for HASCAP:

  • Businesses need to show a year-over-year revenue decline of at least 50% in three months, within the eight months prior to their application.

  • They must also be able to show their financial institutions that they have previously applied for either the Canada Emergency Wage Subsidy or the Canada Emergency Rent Subsidy

Deadline to apply (currently) is Dec 31, 2021

CHECK OUT MORE DETAILS HERE - https://www.bdc.ca/en/special-support/hascap

CONTACT YOUR FINANCIAL INSTITUTION TO APPLY! Many require appointments to apply.

Canada Recovery Sickness Benefit (CRSB) - (Up to $500 per 1 week period)

  • The Canada Recovery Sickness Benefit (CRSB) gives income support to employed and self-employed individuals who are unable to work because they're sick or need to self-isolate due to COVID-19, or have an underlying health condition that puts them at greater risk of getting COVID-19. The CRSB is administered by the Canada Revenue Agency (CRA).

  • If you're eligible for the CRSB, you can receive $500 ($450 after taxes withheld) for a 1-week period.

  • If your situation continues past 1 week, you will need to apply again. You may apply up to a total of 2 weeks between September 27, 2020 and September 25, 2021.

CRSB Info Here - https://www.canada.ca/.../recovery-sickness-benefit.html

Canada Recovery Caregiving Benefit (CRCB) - (Up to $500 per 1 week period)

  • UPDATE April 20, 2021 - Extended to a maximum of 42 weeks

  • The Canada Recovery Caregiving Benefit (CRCB) gives income support to employed and self-employed individuals who are unable to work because they must care for their child under 12 years old or a family member who needs supervised care. This applies if their school, regular program or facility is closed or unavailable to them due to COVID-19, or because they're sick, self-isolating, or at risk of serious health complications due to COVID-19. The CRCB is administered by the Canada Revenue Agency (CRA).

  • If you're eligible for the CRCB, your household can receive $500 ($450 after taxes withheld) for each 1-week period.

  • If your situation continues past 1 week, you will need to apply again. You may apply up to a total of 26 weeks between September 27, 2020 and September 25, 2021.

CRCB Info Here - https://www.canada.ca/.../recovery-caregiving-benefit.html

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CRA My Business Account - https://www.canada.ca/.../e-service.../business-account.html

CRA My Account - https://www.canada.ca/.../e-serv.../account-individuals.html

Please note, this is simply a general overview on the major benefits and subsidies available to businesses. There are many more changes to come and many more benefits that exist because of COVID-19. We recommend you always consult with an accounting professional about your specific situation.

Stay tuned for more as we'll keep this post updated as best we can.

Talk soon and stay safe.

THE Your Bottom Line TEAM!

📱 (905) 436-6663

📨support@yourbottomline.ws

🏢 179 King St E, 2nd Flr, Oshawa

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Regards,
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