Government COVID-19 Relief Programs FAQ

by Gigi Poon | Apr 8, 2020 | Market Info

Government COVID-19 Relief Programs Frequently Asked Questions

Last updated April 17, 2020

With the significant amount of information released by our Federal Government along with the periodic revisions and addendums, we have received many questions from our clients surrounding the details of the COVID-19 Relief Programs. We have put together a set of frequently asked questions to help you further understand how the programs can apply to you and your business.

Recent FAQ Additions

Previous FAQs

Recent FAQ Additions

What is the Canada Emergency Business Account Program (CEBA)?

The Canada Emergency Business Account Program (CEBA) provides eligible small businesses and non-for-profit companies interest-free loans up to $40,000 to help cover non-deferrable operating expenses like payroll, rent, utilities, insurance, and property tax. The interest-free status is valid until Dec 31, 2022 after which the remaining balance is converted to a 3-year term loan at an interest rate of 5% per annum. Repaying the balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25% (up to $10,000).

You can apply for CEBA through your bank or financial institution that holds the primary business operating account. Please contact your financial institution for more information on the application details.

Eligibility Requirements

- Be a Canadian operating business in operation as of March 1, 2020.
- Demonstrate it paid between $20,000 to $1.5 million in total payroll in the 2019 calendar year.
- Have intentions to continue to operate or resume business operations.
- Agrees to participate in post-funding surveys conducted by the Government of Canada or any of its agents.

New program in development to assist with commercial rent

- The Canada Emergency Commercial Rent Assistance
- For the months of April, May and June
- More information to come

My business closed completely due to COVID-19. Should I rehire my employees to get the CEWS?

There is no simple answer to this question. If the employee(s) were rehired and paid the maximum government benefit (the lower of 75% of their pre-crisis salary or $847/week), the business would receive a subsidy equal to the amount paid. So, the business would net $0 in long-term cash flows and the employees would likely receive greater benefits than those of the CERB program. The major issue with this plan is the timing of the subsidy. It is not expected that the CEWS benefits will be paid until mid to late May 2020. If cash reserves and financing are an issue, paying employees for the next 6 weeks while the business waits for the subsidy may not be possible.

I’m eligible for CEWS. What do I do next?

Click here for more information on CEWS program eligibility criteria.

Due to COVID-19, many businesses were forced to lay off some or all of their employees due to a significant reduction in revenues. Now that the government has released the details of the Canada Emergency Wage Subsidy (CEWS) program, many clients have been asking us the following questions:

- Can my business hire back laid-off employees?
- If so, will my business receive full reimbursement under the government’s new Canada Emergency Wage Subsidy (CEWS) program?

The answer to both of these questions is: Yes!

We’ve written a step-by-step guide here for businesses that have closed down and have no revenue.

Previous FAQs

How do I register for direct deposit?

As you get ready to apply for the various government credits, the fastest way to get these funds will be through CRA’s direct deposit service. In order to register as an individual there are a few options as follows:

Through your financial institution

Please find your institution from the list on this page and it will tell you how to register
You will need to have your financial institution online login and SIN number ready

Through CRA My Account

Sign up for CRA My Account
Note that if you do not have an existing direct deposit account then this process will take longer to do due to verification

Register as a Business

Register or login to your existing CRA My Business Account
If you have given someone Power of Attorney and they have a Represent a Client account they can register on your behalf
Note that we do not have the ability to register for Direct Deposit on your behalf at this time. If CRA changes the rules around this we will provide you with an update.

I paid myself dividends in 2019, do I qualify for CERB?

Yes, as long as the dividends were non-eligible dividends (dividends on low rate taxable income) and you meet the other criteria. This was a recent announcement from Service Canada that was not clearly communicated last week. We will update this post once more information becomes available.

I am working part-time during the crisis, can I still qualify for CERB?

The government recently announced that working 10 hours or less a week will not disqualify a worker from receiving benefits. Also, if the income earned is less than the CERB benefits, a worker can still qualify for the benefits. More details will be released as to how this will be implemented and if benefits will be reduced while working part-time.

What will happen to my CERB payments if I start working again before June 15?

Each month, CERB recipients will be required to attest that they are still out of work. If the recipient starts working (in excess of 10 hours per week), they will report this to CRA and the benefits will stop.

Does my business qualify for the $40,000 Canada Emergency Business Account loan?

A business must have $50,000 to $1,000,000 of 2019 salary expenses (as reported on the 2019 T4 summary) to qualify. This program is being operated by the banks not directly by CRA. If you have questions on qualifications, please contact your corporate banker. The banks will get the information on the program first.

Can I apply for CEWS benefits personally?

No, CEWS is a business benefit, not a personal benefit. If a business owner was paid a salary by their business before the crisis, the business can claim CEWS benefits on the owner’s salary from March 15 – June 6, similar to other employees.

I’m not eligible for CEWS because my business revenues haven’t dropped by -30%. Am I eligible for any other benefits?

The government has announced that the required reduction in revenue is actually 15% for the period of March 15 to April 11 and 30% for the remaining periods (see chart below). If you are still not within the criteria for CEWS eligibility, you may still be eligible for the Temporary Wage Subsidy Program which we have written about in a previous post. Application details for this program will be released by the government at later date.

	Claiming Period	Required reduction in revenue	Reference period for eligibility
Period 1	Mar 15 – Apr 11	15%	Mar 2020 over: March 2019 or Average of Jan & Feb 2020
Period 2	Apr 12 – May 9	30%	April 2020 over: Apr 2019 or Average of Jan & Feb 2020
Period 3	May 10 – Jun 6	30%	May 2020 over: May 2019 or Average of Jan & Feb 2020

We have laid off our employees and they are on the CERB. Our last payroll was paid out on March 16th. The CEWS eligibility period is for any renumeration paid out on March 15 and later. Does this would mean that we are eligible for CEWS for that March 15 payroll?

CEWS coverage is available for individual employees employed in Canada who have been with remuneration from their employer for more than 14 consecutive days in the applicable eligibility period. As the 1st period is March 15 to April 11, this means that you are not eligible for CEWS.

I received dividends in 2019, can I add myself to my corporation’s payroll to receive CEWS benefits on my salary?

No, while a business can hire new employees during this time, wages and salary paid to new employees ‘not dealings at arm’s length’ (family members of the shareholders) do not count towards the CEWS.

Do I need to rehire all my employees to get the CEWS benefits?

No, some or all of the employees can be rehired. The benefit is based on the wages and salary actually paid to employees for the period of March 15 – June 6.

Do I need to pay employees 100% off their pre-crisis wages and salary to get the CEWS benefits?

No, the government requests that businesses make every effort to pay the full amount if they can afford it. If the business is completely closed or the revenues are severely reduced, this is not possible and paying just the amount to get government benefits is sufficient to qualify.

Will the CEWS benefits be taxable to the business?

Yes, this is a taxable subsidy. Since it is tied to paying tax-deductible wages and salaries the net taxable income will be $0.

As an example:
A business has a monthly payroll of $100,000. The business was forced to close due to COVID. The owner decides to pay the employees 75% of their pre-crisis wages (which are all under the $847 threshold).

On April 30, the business pays the employees $75,000 (75% of regular pay) less standard CPP, EI, and income tax withholdings (approximately $25,000). The employees collectively receive $50,000.

On May 15, the business remits the standard payroll withholdings to CRA of $25,000.

In mid to late May, the business will receive $75,000 in CEWS benefits.

Taxable CEWS benefits	$75,000
Less: net salary	(50,000)
Less: payroll remittance	(25,000)
Net taxable income	$0
Income Taxes	$0
Net income	$0

Will there be more changes to these programs in the future?

Yes, there will be more changes! These programs are very complicated and constantly evolving. Due to the quick announcement of the programs, many business owners and workers were inadvertently overlooked in the initial benefits. Changes have been made and will continue to be made to account for these situations. As more details are announced, our team of experts will keep you up to date on all the changes.

In these unprecedented times, we understand that there is a lot of information to disseminate.

We at Provision are here to help you in any way we can. Feel free to reach out directly to your contact at Provision for more details and clarifications.

Raina Bellani
604-273-6601 ext. 109
rbellani@provisiongroup.ca

Kurt Hamilton
604-273-6601 ext. 112
khamilton@provisiongroup.ca

Nathan Morrison
604-273-6601 ext. 104
nmorrison@provisiongroup.ca

Garth Drummond
604-273-6601 ext. 105
gdrummond@provisiongroup.ca

As Senior Relationship Manager with Provision CPA, Vernon believes open communication and a strong working relationship are vital to success. He strives to anticipate client needs and find opportunities for strategic and tactical planning. Vernon finds it rewarding when he has helped play a role in developing a tax plan that turns into a savings or profit maker for the client. It’s a privilege to be involved in something as personal as an entrepreneur’s business vision.

One of the best pieces of advice he was ever given was “Give all that you can without expectation. No matter how much we give away, there will never be any shortage because giving brings its own reward.” A fun fact about Vernon is that he used to be a self-employed musician. Art and music are part of his daily life outside of the office, and you’ll find him enjoying it any time he can with his family.

As the Client Advocate and Admin Manager, Stefanie wears many hats. Front-facing, she spearheads onboarding for new clients and answers front desk phone calls and emails, while internally managing Provision CPA’s Admin team behind the scenes. Stefanie enjoys the act of troubleshooting and figuring out how to solve problems in a way that adds value to her clients and ensures they feel heard.

Stefanie has worked at Provision CPA for seven years now and she describes every day as an adventure. She’s fulfilled by the constant ability to learn and take on something new, with the personal and professional support of her team.

The most important thing to know about Stefanie: Don’t let her RBF fool you, she loves to laugh and make others laugh, too!

From a young age, Raina has always been interested in solving calculations and numbers, which drove her to pursue a career in Accounting as a CPA. 13 years later, she still loves the creativity she gets to bring with taxes and advisory. As a Senior Relationship Manager at Provision CPA, she assists in finding solutions to the entrepreneur’s accounting and tax needs. She does this by constantly trying to think ‘big picture’ and finding ways to make tax and accounting as simple as possible for her clients.

What Raina enjoys most about her role is meeting new people and learning about their businesses and challenges. The best piece of advice she’s ever been given was “we constantly need to change, grow, and learn.”

Outside of work, you’ll find her spending time with her two little ones and hubby. She also loves to travel and has spent 27 years in busy Mumbai, India!

Kulveer is a Junior Accountant at Provision CPA. To Kulveer, developing relationships and trust with business owners and guiding them through every day situations is what she finds most fulfilling. She’s always up for a challenge and appreciates the autonomy Provision provides to work with a diverse roster of businesses and coming up with solutions to their problems.

The best piece of advice she’s ever received was to “count your blessings no matter what else is going on in life.”

When Kulveer’s not working, you’ll find her spending time with family and friends, tutoring, or exercising.

With seven years of experience in the Accounting industry, Rachel understands the deep need to provide entrepreneurs with professional advice in a clear, concise, and consumable way. Rachel first studied Chinese Literature in University but always had a calling for math (mainly because she’s good at it!). It was when she immigrated to Canada that she decided to pursue a career in Accounting.

Now, as an Intermediate Accountant at Provision CPA, she still gets fired up organizing numbers for businesses. Rachel describes her role as a bridge between bookkeepers and managers – she’s involved in not only the minute details of a business, but the big, granular picture as well.

The best piece of advice Rachel’s been given was “Don’t give up easily, nothing is impossible”, and she applies this to her day-to-day-life.

Outside of work you’ll find Rachel spending quality time with her three kids, reading books and watching movies.

Ahmed is an Intermediate Accountant at Provision CPA. He’s always had an analytical mind and an insatiable curiosity for business. Ahmed knew early on that he wanted to get involved in the field of finances. After studying business at Kwantlen Polytechnic University, he explored a career in Accounting.

Ahmed loves being the entrepreneur’s trusted partner in all things finance. He enjoys helping them grow their business by providing astute financial advice and making sure tax season is a smooth process for them. He also takes pride in making sure his clients can make the best decisions for their businesses, helping them succeed year-round.

When he’s not working, you’ll find Ahmed exploring the nature B.C has to offer. The best piece of advice Ahmed was once given is “Focus on improving at your passion and the rewards will follow.”

As an Administrative Database Analyst, Kristen makes sure that Provision’s clients are taken care of by analyzing business processes, identifying gaps, and providing creative solutions that help the Provision team to do their job most successfully.

Before landing at Provision, she explored several industries from marketing to manufacturing, and pursued her MBA in 2017. Kristen was drawn to the firm’s flexible and collaborative work environment, and strong focus on training and mentoring team members. Collaborating with her team, Kristen’s goal is to make accounting simple while also instilling confidence in clients that their work will be done on time with exceptional service.

The best piece of advice she has ever been given was “Don’t stop learning. Every day is an opportunity to learn something new.” Outside of work you’ll find Kristen in the kitchen learning new ways to make traditional food. A fun fact? She used to work at a brewery as a Beer Quality Tech, which is where she discovered her passion for process improvement.

Sarah’s love for tax (believe it or not) and passion for entrepreneurship led her to Provision CPA. Her role focuses on quality control, making sure all team members are well-equipped, and that processes are efficient and effective so that clients receive excellent service. Being able to serve, add value, and alleviate a client’s burden while also celebrating their entrepreneurial journey is rewarding to Sarah.

Did you know that Sarah had conquered 7 continents before the age of 30? Not only is she a globetrotter, she can also speak 5 languages. When she’s not working, you’ll find Sarah embracing her role as a full-time dog mom.

Johnny is a Manager at Provision CPA, with accounting industry experience from small local firms to large international firms. He makes sure that every client is in the most tax optimal position by performing quality control on files to ensure accuracy.

Johnny takes on any opportunity to put his entrepreneurial hat on! At the firm, he enjoys working closely with entrepreneurs and helping them to navigate the ups and downs of owning a business. Johnny believes that the key to success lies in providing excellent customer service and finds deep fulfillment in helping his clients grow and focus on their business, without them having to worry about the accounting and tax work in the back-end.

A fun fact you probably didn’t know about Johnny is his love for basketball and hockey (it’s still undecided which one he loves more). Out of the office, he’s shooting hoops with friends and visiting the local park with his family.

Maria has been at Provision CPA for almost 13 years as a Staff Accountant, working directly with entrepreneurs and getting to know their businesses and lives on a deep level. Ultimately, she wants every client to feel that she is there for them. To Maria, it’s not just about numbers or making sure everything looks correct on paper – she wants every business owner to feel heard.

Maria views every challenge as a new experience and brings positivity to problem-solving. At the end of the day, she goes home feeling fulfilled knowing she gave her all.

When she’s not working, you’ll find Maria knocking off another local trail from her long list of hikes. Since she was a Girl Guide Leader for 20 years, she knows her stuff! Ask her for her B.C. hiking bucket list.

With over 20 years of entrepreneurial experience, Bita has had quite the career journey – from owning a bakery, then a flower shop, to selling real estate and getting her Mortgage Broker license, she’s done it all.

Some time ago, Bita decided to go back to school and start a new journey in becoming a CPA. She now brings the passion and determination of an entrepreneurial spirit to her team and clients at Provision CPA.

Bita’s goal is to make her clients’ “accounting life” as stress-free and straightforward as possible. Her strength lies in her ability to speak the “entrepreneurial language”.

The best piece of advice she’s been given is to “give 110% in everything you do”, whether that’s troubleshooting client issues, or riding her scooter (rain or shine) you’ll find Bita fully committing to the job.

After working for multinational companies in the past, Vanessa was drawn to Provision CPA because of a deep values alignment. What she loves about working at Provision is the opportunity to help business owners improve their accounting processes and problem solve through a strategic lens.

Vanessa’s ‘why’ is dedication. She’s dedicated to always giving her best to both her clients and coworkers. Sarah also loves to find opportunities to grow, and when there are gaps that need improvement, she embraces the challenge with open arms. The best piece of advice she was given was from her mom, to “follow your dreams” you’ll see her applying this to both her work and personal life.

When Vanessa isn’t working, she’s going for long walks to “get some exercise” but we all know she’s actually catching Pokémon!

From strategic alignment through to execution, as a Manager, Oliver is involved in supporting every stage of the entrepreneur’s journey at Provision CPA.

Oliver brings experience from working at a large firm in the UK, but he prefers to work in a closer-knit environment where he can be more involved in delivering impact and results for clients. Oliver finds working with people who have a real passion for their companies contagious, proving to him that there IS a way to make accounting “exciting” (most of the time).

What you might not know about Oliver, is that bookkeeping is his superpower. Most people don’t like dealing with the financial side of things – luckily, that’s where he thrives. His experience working with a variety of businesses and industries of different sizes gives Oliver a lens into understanding how to manage and help achieve each client’s unique desire.

The best piece of advice he was ever given? “Never turn down an invitation to do something new.”

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