Updated August 14, 2020
Canada Emergency Wage Subsidy (CEWS)
The original program ran from March to August 2020. If revenue was lower by 30% or more, you could claim a subsidy equal to 75% of wages paid, subject to certain limits.
The new program covers the period July to December 2020. It has been expanded to include all companies that have had a reduction in revenue.
The subsidy rate depends on the % revenue decrease and changes every month.
For example, if revenue is down 20%, the subsidy would be between 8% and 24%.
If revenue is down 60%, the subsidy would be between 45% and 85%.
For July and August (the overlapping periods), the company can choose to apply under either the original or new program.
Original Program Application Guide:
$40K Interest Free Loan – Canada Emergency Business Account (CEBA)
To assist companies with their cash flow, companies will be eligible to apply for a $40,000 interest free loan if:
1) their 2019 annual payroll was between $20,000 and $1.5 million
2) the funds will be used for non-deferrable operating expenses such as payroll, rent, property taxes, utilities, and insurance
You apply for this loan via your financial institution.
Companies with a 2019 payroll less than $20,000 may also qualify if they have over $40,000 of non-deferrable operating expenses such as rent, property taxes, utilities, and insurance. You will be required to submit documents supporting these expenses to CRA before the loan will be approved.
Canada Emergency Commercial Rent Assistance (CECRA)
Businesses that rent space may be eligible for 75% rent relief if their revenue is down at least 70%.
Your commercial landlord must make the application.
The program has been extended by one month to cover rents in July 2020.
10% Temporary Wage Subsidy
All companies qualify for a wage subsidy for the period March 18th to June 19th equal to 10% * Gross Pay.
The maximum for the entire period is $1,375 times the number of employees or $25,000, whichever is less.
This subsidy is 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 (February 2019)
Corporate Tax Changes (January 2019)
CRA Audits (February 2018)
- Business bank statements
- Personal bank statements
- Credit card statements and supporting receipts
- Supporting documents for expenses (supplier invoices / emails)
- Investment statements
- Payroll registers
Ontario Employment Law (January 2018)
- Increasing the minimum wage to $14.00 per hour (the proposed increase to $15.00 per hour effective January 2019 has been cancelled)
- Allowing employees personal emergency leave up to three days for personal illness, two for bereavement and three for family responsibilities (unpaid).
- Increasing vacation for employees with at least 5 years’ service to 3 weeks.
Corporate Tax Changes (December 2017)
- The federal small business tax rate has decreased to 10.0% (from 10.5%)
- The Ontario small business tax rate has decreased to 3.5% (from 4.5%)
Medical Expenses (July 2017)
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 (these include drugs, dental, glasses, therapy).
- You own a corporation
- Your family medical expenses are usually over $1,000 per year
- You 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.