Barrie Chamber of Commerce Video
10% Temporary Wage Subsidy for Employers (TWS)
To be an eligible employer for the 10% Temporary Wage Subsidy for Employers (TWS), you must meet the following conditions:
- You have a Canada Revenue Agency (CRA) payroll program (RP) account as of March 18, 2020
- You paid eligible remuneration to an eligible employee from March 18 to June 19, 2020
You are one of the following:
- individual or sole proprietor (excludes trusts)
- non-profit organization
- registered charity
- Canadian-controlled private corporation (CCPC) (including a cooperative corporation)
If your business was closed due to COVID-19 and you did not pay salary, wages, bonuses, or other remuneration to an eligible employee from March 18 to June 19, 2020, you cannot take advantage of the subsidy, even if you are an eligible employer.
Canada Emergency Wage Subsidy (CEWS)
https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html
As a Canadian employer who has seen a drop in revenue due to the COVID-19 pandemic, you may be eligible for a subsidy to cover part of your employee wages, retroactive to March 15. This subsidy will enable you to re-hire workers, help prevent further job losses, and ease you back into normal operations.
Sections
- What the changes are: Canada Emergency Wage Subsidy (CEWS)
The latest changes to the wage subsidy program - Who can apply: Canada Emergency Wage Subsidy (CEWS)
Find out if you are eligible to apply for the subsidy - Periods you can apply for: Canada Emergency Wage Subsidy (CEWS)
Claim period dates and which periods you can apply for today - Which of your employees qualify: Canada Emergency Wage Subsidy (CEWS)
Which employees you can include in your claim and payroll information you will need - Calculate your subsidy amount: Canada Emergency Wage Subsidy (CEWS)
Use our calculator to find out how much your wage subsidy may be - How to apply: Canada Emergency Wage Subsidy (CEWS)
How to submit an application for the wage subsidy - After you apply: Canada Emergency Wage Subsidy (CEWS)
Getting your payment, reapplying for other periods, changing a claim, and our review of claims - Contact us about CEWS: Canada Emergency Wage Subsidy (CEWS)
How to contact the CRA about the wage subsidy
Related guides
New T4 Reporting Requirements
New T4 reporting requirements
For the 2020 tax year, the Canada Revenue Agency (CRA) will be introducing additional reporting for the T4 slip, Statement of Remuneration Paid.
Additional reporting requirements will apply to all employers, and will help the CRA validate payments under the Canada Emergency Wage Subsidy (CEWS), the Canada Emergency Response Benefit (CERB), and the Canada Emergency Student Benefit (CESB).
Please note that employers who have already filed their T4 slips and summary for 2020 will not need to refile.
How to report employment income during COVID-19 pay periods
For the tax year 2020, in addition to reporting employment income in Box 14 or Code 71, use new other information codes when reporting employment income and retroactive payments in the following periods:
- Code 57: Employment income – March 15 to May 9
- Code 58: Employment income – May 10 to July 4
- Code 59: Employment income – July 5 to August 29
- Code 60: Employment income – August 30 to September 26
Eligibility criteria for the CERB, CEWS, and CESB is based on employment income for a defined period. The new requirement means employers should report income and any retroactive payments made during these periods.
Canada Emergency Business Account (CEBA)
The Eligible Non-Deferrable Expense categories are the following:
- Wages and other employment expenses to independent (arm’s length) third parties.
- Rent or lease payments for real estate used for business purposes.
- Rent or lease payments for capital equipment used for business purposes.
- Payments incurred for insurance related costs.
- Payments incurred for property taxes.
- Payments incurred for business purposes for telephone and utilities in the form of gas, oil, electricity, water, and internet.
- Payments for regularly scheduled debt service.
- Payments incurred under agreements with independent contractors and fees required to maintain licenses, authorizations or permissions necessary to conduct business by the Borrower.
- Payments incurred for materials consumed to produce a product ordinarily offered for sale by the Borrower.
Other Government of Canada COVID response programs include the following:
- Canada Emergency Wage Subsidy,
- 10% Temporary Wage Subsidy,
- Canada Emergency Commercial Rent Assistance, Regional Relief and Recovery Fund,
- Futurpreneur Canada,
- Northern Business Relief Fund,
- Fish Harvester Grant,
- relief measures for Indigenous businesses,
- $250 million COVID-19 IRAP (Industrial Research Assistance Program) Subsidy Program, and
- Canada Emergency Rent Subsidy.
Canada Emergency Rent Subsidy
https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-rent-subsidy.html
Canadian businesses, non-profit organizations, or charities who have seen a drop in revenue due to the COVID-19 pandemic may be eligible for a subsidy to cover part of their commercial rent or property expenses, starting on September 27, 2020, until June 2021.
This subsidy will provide payments directly to qualifying renters and property owners, without requiring the participation of landlords.
If you are eligible for the base subsidy, you may also be eligible for lockdown support if your business location is significantly affected by a public health order for a week or more.
Ontario programs:
- The Ontario Government has provided a template for business owners to develop their COVID-19 Workplace Safety plan:
https://www.ontario.ca/page/develop-your-covid-19-workplace-safety-plan - The Ontario Government has offered ‘Ontario’s Main Street Relief Grant’, offering a one time grant of up to $1,000.00 for eligible businesses to help cover PPE costs:
https://www.ontario.ca/page/businesses-get-help-covid-19-costs?gclid=CjwKCAiAirb_BRBNEiwALHlnDwAmMX639PuPFETNxjUS7qiJ8xQAWz4NjVvL-W1JaVytxgEdukYlUxoCsAQQAvD_BwE - Coming soon: Ontario Small Business Support Grant
Starting sometime in January 2021, a new program offering $10,000-$20,000 to help small businesses that have been required to close or significantly restrict services under the current Provincewide Shutdown.
https://www.ontario.ca/page/businesses-get-help-covid-19-costs?gclid=CjwKCAiAirb_BRBNEiwALHlnDwAmMX639PuPFETNxjUS7qiJ8xQAWz4NjVvL-W1JaVytxgEdukYlUxoCsAQQAvD_BwE#section-5
Links
Federal Programs mentioned:
- 10% Temporary Wage Subsidy for Employers (TWS)
https://www.canada.ca/en/revenue-agency/services/subsidy/temporary-wage-subsidy/tws-who-eligible.html - Canada Emergency Wage Subsidy (CEWS)
https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html - New T4 Reporting Requirements
https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/support-employers-cra-covid-19.html - Canada Emergency Business Account (CEBA)
https://ceba-cuec.ca/ - Canada Emergency Rent Subsidy
https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-rent-subsidy.html
Ontario programs:
- The Ontario Government has provided a template for business owners to develop their COVID-19 Workplace Safety plan:
https://www.ontario.ca/page/develop-your-covid-19-workplace-safety-plan - The Ontario Government has offered ‘Ontario’s Main Street Relief Grant’, offering a one time grant of up to $1,000.00 for eligible businesses to help cover PPE costs:
https://www.ontario.ca/page/businesses-get-help-covid-19-costs?gclid=CjwKCAiAirb_BRBNEiwALHlnDwAmMX639PuPFETNxjUS7qiJ8xQAWz4NjVvL-W1JaVytxgEdukYlUxoCsAQQAvD_BwE - Coming soon: Ontario Small Business Support Grant
Starting sometime in January 2021, a new program offering $10,000-$20,000 to help small businesses that have been required to close or significantly restrict services under the current Provincewide Shutdown.
https://www.ontario.ca/page/businesses-get-help-covid-19-costs?gclid=CjwKCAiAirb_BRBNEiwALHlnDwAmMX639PuPFETNxjUS7qiJ8xQAWz4NjVvL-W1JaVytxgEdukYlUxoCsAQQAvD_BwE#section-5
