Updated July 23. 2021
Application for COVID subsidies is made via CRA’s My Business Account.
Canada Recovery Hiring Program (CRHP)
This new program provides a subsidy based on the increase in eligible wages compared to period 14 of CEWS (March 14, 2021 to April 10, 2021). This program runs from June 6, 2021 (CEWS period 17) to November 20, 2021. The initial subsidy rate of 50% reduces over time to 20%. Starting period 18, the company must have a revenue reduction of at least 10%. The company can claim either CEWS or CRHP, whichever is higher.
Canada Emergency Wage Subsidy (CEWS)
This program has been extended to September 2021 (period 20). It provides a subsidy of all eligible wages based on the % revenue drop of the company. The maximum subsidy rate decreases from 75% in period 17 to 20% in period 20. Starting period 18, the company must have a revenue reduction of at least 10%.
Canada Emergency Rent Subsidy (CERS)
This program has been extended to September 2021 (CEWS period 20). You are eligible if you rent or own a commercial property. The subsidy is based on the % revenue decline. The maximum subsidy of 65% reduces over time to 20%. Payments are made directly to the company.
Canada Emergency Business Account (CEBA)
This program closed June 30, 2021. The original program provided $40,000 of emergency funding to assist business impacted by COVID-19. 25% of this loan is forgivable if repaid before December 31, 2022. The program was expanded to provide an additional $20,000 (ie. up to $60,000), with an additional $10,000 being forgivable if repaid before December 31, 2022.
Canada Emergency Commercial Rent Assistance (CECRA)
This program ended in September 2020. It provided for 75% rent relief if revenue was down at least 70%. The application was made by the commercial landlord.
10% Temporary Wage Subsidy
This program ended in June 2020. It provided for a wage subsidy for the period March 18th to June 19th equal to 10% of the gross payroll.
The maximum for the entire period was $1,375 times the number of employees or $25,000, whichever was less.
Any amounts received under this subsidy reduced the claim. This subsidy was claimed by reducing payroll source deduction payments to CRA.
How to Register for CRA’s My Business Account
If you sign-in via a partner, use your personal, not business, bank card.
Salary vs Dividends
Corporate Tax (January 2019)
- Business bank statements
- Personal bank statements
- Credit card statements and supporting receipts
- Supporting documents for expenses (supplier invoices / emails)
- Investment statements
- Payroll registers
You may be able to reduce your medical costs by setting up a medical benefits plan. If you meet the conditions below, your company can reimburse you for 100% of your medical expenses (including drugs, dental, glasses, therapy). This process turns a personal medical expense into a company expense. You pay the expense and submit a claim online. The funds are withdrawn from the company and deposited into your personal bank account.
- You own a corporation
- You receive a salary from your corporation
- Your family medical expenses are usually over $1,000 per year
- You or your spouse do not belong to a group plan
- You have no employees (except family members)
Olympia Benefits Inc has set up a plan that is popular with small business owners.
Here is a link to additional information: http://www.olympiabenefits.com/health-and-dental-plans-for-small-business
We recommend the Olympia HSA “Plus” plan.