FEDERAL UPDATES

NEW 1) In yet another update to the $71 billion wage subsidy the federal government is in the process of rolling out (CEWS), the parameters to qualify are being relaxed. Previously, businesses would have to show a 30 per cent drop in revenues compared to this time last year, which some start-ups and new businesses would not be able to do. Now, companies can compare their lost revenue to what they made in January and February of 2020, and will only need to show a 15 per cent decline in March. The subsidy will be on 75 per cent of employees’ salaries, up to $847 a week per employee, retroactive to March 15, for companies big and small. Charities are also being granted the ability to choose whether or not to include government revenues in their calculations of lost revenue when applying. Info has yet to be updated: https://www.canada.ca/en/department-finance/economic-response-plan/wage-subsidy.html

NEW 2) The government has also announced temporary changes to the Canada Summer Jobs program. Now, employers who hire summer students can apply for a subsidy of up to 100 per cent of the provincial or territorial hourly minimum wage. This will help create up to 70,000 jobs for Canadians between the ages of 15 and 30, and will help give them work experience and an income despite the current economic situation. The timeframe for the job placements is being extended to the end of February, given some jobs will start later than usual. The student hires can also be employed part-time, given many businesses have had to scale back their operations.

3) The application process for the Canadian Emergency Response Benefit (CERB) opened on April 6. If you stopped working because of COVID-19, you should apply for the Canada Emergency Response Benefit, whether or not you are eligible for Employment Insurance. The Benefit is available for the period from March 15, 2020 to October 3, 2020.

If you applied for EI regular or sickness benefits on March 15, 2020 or later, your claim will be automatically processed through the Canada Emergency Response Benefit.

NOTE: It’s important to be aware that CERB payments are taxable income, and will be assessed as such for the 2020 tax year.

• To read the CERB FAQ: https://www.canada.ca/en/services/benefits/ei/cerb-application/questions.html

• To apply for CERB: https://www.canada.ca/en/services/benefits/ei/cerb-application.html

4) There will be adjustments to the CERB in the coming days to include people such as gig workers, contractors, and volunteer firefighters who work 10 or fewer hours per week. He also said there would be support for those who continue to work but are making less than they would through CERB, such as home care workers or people caring for vulnerable seniors in long-term care facilities.

To access Canada’s COVID-19 Economic Response Plan,

including info for individuals and businesses:

https://www.canada.ca/en/department-finance/economic-response-plan.html